The SVA Social Impact Fund (SIF) is a $7.3m fund established to provide loans and equity investments to Australian social enterprises. The SIF was founded in 2012 with a seed funding grant from the Australian Government, matched with investment from private investors.

The launch of the SIF saw SVA work proactively to catalyse the impact investing market in Australia, resulting in 37 committed investors.

The SIF provided loan and equity investments between $100,000 and $1.5m to ten social enterprises and housing projects. The SIF has generated competitive returns (approximately 7% IRR per annum since inception) and created meaningful impact, as outlined in the table below.

SIF Investments

Badges SIF

 

SVA is currently raising $10 to $15 million to fund the SVA Diversified Impact Fund, the successor of the SIF.

Numbers are current as at 30 June 2017

Performance Reporting

The SIF reports on a semi-annual basis, in March (half-year update) and October (annual update). Please download past reports for more information about the Fund.

SVA Social Impact Fund FY17 Annual Investor Report – 2017 (PDF, 1MB)

SVA Social Impact Fund FY16 Annual Investor Report – 2016 (PDF, 1MB)

SVA Social Impact Fund FY15 Annual Investor Report – 2015 (PDF, 2MB)

SVA Social Impact Fund FY14 Annual Investor Report – 2014 (PDF, 2MB)

Portfolio Details

As at 30 June 2017, the SIF has made ten investments with total commitments of $8.2 million. The portfolio holds the following social enterprises.

STREAT

Secured 18 month construction loan for STREAT's new headquarters.

STREAT

Summary: STREAT is a hospitality social enterprise that provides work experience, training and support to youth at risk. SVA, along with co-investment from NAB, funded the construction of STREAT’s new headquarters in Cromwell Street, Collingwood to increase the number of young people trained and supported by STREAT.

Location: Collingwood, Victoria

Date of initial investment: December 2015

Investment size: $1.25 million

Investment Type: Secured 18 month construction loan, pari passu with NAB

Loan purpose: Loan to fund the construction of the new STREAT headquarters on Cromwell St, Collingwood which will include café, catering, bakery and roaster facilities

Social aim: Training and employment of youth experiencing homelessness or at risk of homelessness

Done

PGM Refiners

$1,000,000 staged equity investment to expand an e-waste recycler that employs disadvantaged job-seekers

PGM Refiners

Summary: $1,000,000 staged equity investment to expand an e-waste recycler that employs disadvantaged job-seekers

Location: Dandenong, Victoria

Date of initial investment: October 2012

Investment size: $1,000,000

Investment type: Redeemable Convertible Preference Shares (RCPS). The RCPS have a fixed coupon rate (subject to cashflow) and a conversion right within the first 5 years

Loan purpose: Equity investment to expand operations

Social aim: Employment of disadvantaged job seekers

Social impact: As at 31 December 2013, PGM was employing 32 disadvantaged job seekers or 87% of total front line employees

Done

Ability Enterprises

$163,000 working capital loan to enable new employment opportunities for people with disabilities and mental health issues.

Ability Enterprises

Summary: $163,000 working capital loan to enable new employment opportunities for people with disabilities and mental health issues.

Location: Toowoomba, Queensland

Date of initial investment: October 2012

Investment size: $163,000

Investment type: Secured 4 year loan, fixed interest and principal repayments

Loan purpose: Working Capital loan to allow Ability to fulfil their contract with Toowoomba Regional Council.

Social aim: Employment opportunities for people with disabilities and mental health issues

Social impact: As at 31 December 2013, Ability has created 41 jobs for people with disabilities and/or mental health issues and is seeking to expand its operations.

Done

Christie Centre

$100,000 loan to help fund the acquisition of an office furniture recycling business that will employ a number of job-seekers with disabilities.

Christie Centre

Summary: $100,000 loan to help fund the acquisition of an office furniture recycling business that will employ a number of job-seekers with disabilities.

Location: Mildura, Victoria

Date of initial investment: 23 May 2014

Investment size: $100,000

Investment type: 5 year loan, fixed interest and principal repayments.

Loan purpose: Acquisition by Christie Centre of a business that buys used office furniture restores it and sells it to Mildura businesses.

Social aim: Creation of permanent employment for people with a disability. Additionally, any surplus from operations will be reinvested back into the Christie Centre’s broader operations. Christie Centre has a strong track record as a NFP ADE.

Done

Nightingale Housing

Secured 18 month construction loan of $1.5 million.

Nightingale Housing

Summary: Nightingale Housing is a social enterprise with a new model to improve housing affordability and sustainability. SVA provided funding as part of a syndicated $6.5 million construction loan for its pilot project – a multi-residential housing complex for mainly first-home buyers.

Location: Brunswick, Victoria

Date of initial investment: August 2016

Investment size: $1.5 million

Investment Type: Secured 18 month construction loan, pari passu with a club of lenders

Loan purpose: Loan to construct 22 residential and commercial units piloting a new housing model

Social aim: Improve housing affordability and sustainability

Done

Sustain Community Housing

$786,000 loan for the land acquisition and construction of 6 dwellings for a mixed-development impact project.

Sustain Community Housing

Summary: $786,000 loan for the construction of 6 dwellings in a mixed development

Location: Western Sydney, New South Wales

Date of Investment: 24 December 2014

Investment type: Secured 12 month construction loan, fixed rate 7.5% p.a. with interest and principal bullet repayments upon sale of first two dwellings

Purpose: To fund the acquisition of land and construction of 6 dwellings, two to be retained for social and affordable housing

Social aim: Housing of both social and affordable tenants upon completion of the building, demonstrate a sustainable non-government funded model to be scaled up

Done

The Integrated Medical Centre

$450,000 loan to a community health organisation to fund the establishment of a private GP clinic.

The Integrated Medical Centre

Summary: $450,000 loan to a community health organisation to fund the establishment of a private GP clinic.

Location: Fitzroy North, Victoria

Date of initial investment: October 2011

Investment size: $450,000

Investment type: 7 year loan, fixed interest and principal repayments

Loan purpose: Loan to a community health centre to fund the establishment of a private GP clinic.

Social aim: Cross-subsidise the provision of free and low-cost health services to vulnerable members of the community

Social impact: As at 31 December 2013, the centre is open, with two part-time GPs and six other tenants. GP revenue has grown steadily by 27% month-on-month over the last six months.

Done

Music Stars

$250,000 convertible loan to fund the growth of the enterprise to deliver affordable music tuition in regional and remote Australia.

Music Stars

Summary: $250,000 convertible loan to fund the growth of the enterprise to deliver affordable music tuition in regional and remote Australia.

Location: Kiama, new South Wales

Date of Investment: 12 September 2014

Investment type: Convertible loan secured with a general security over the assets of the borrower.

Purpose: Operating capital to fund multi-class management software, purchase additional musical instruments and fund growth

Social aim: Deliver affordable music tuition to primary school students or younger in regional and remote communities throughout Australia

Social impact: Over 3,750 students enrolled in tuition and 126 schools with an average ICSEA of 959 serviced.

Done

Iman Operations

$800,000 loan to assist an Indigenous owned and staffed cleaning company which secured a significant contract with one of Australia’s largest mining services companies.

Iman Operations

Summary: $800,000 loan to assist an Indigenous owned and staffed cleaning company which secured a significant contract with one of Australia’s largest mining services companies.

Location: Surat Basin, Queensland

Date of initial investment: 16 April 2014

Investment size: $800,000

Investment type: Secured 11 month loan, interest and principal repayments.

Loan purpose: Working capital to help mobilise a commercial cleaning contract Iman Operations secured with Thiess on a QGC site in the Surat Basin, QLD.

Social aim: The creation of up to 80 jobs for Indigenous workers over the term of the contract. Iman Operations is a wholly owned subsidiary of Iman Nation, an indigenous owned and managed NFP. Strong employment pathway and job readiness training will be provided by an Indigenous employment provider.

 

Done

Inside the Brick

$200,000 loan to establish construction play centres that support children with Autism Spectrum Disorders.

Inside the Brick

Summary: $200,000 loan to establish construction play centres that support children with Autism Spectrum Disorders

Location: Fairfield, Victoria

Date of initial investment: October 2013

Investment size: $200,000

Investment type: Secured 5 year loan, fixed interest and principal repayments

Loan purpose: To establish construction play centres that support children with Autism Spectrum Disorders (ASD)

Social aim: Social inclusion of children with ASD

Social impact: Once established, Inside the Brick will donate 50% of profits to develop non-profit organisations’ capacity to delivery Fair Play Zones, provide sensory friendly play opportunities and advocate, mentor and support the development of unique interest communities appropriate for children at risk of social exclusion

Done

Resources for social enterprises

To assist new and maturing social enterprises, SVA has developed a comprehensive Business Planning Guide for Social Enterprises.

A number of organisations support the growth of Australian social enterprises:

  • Social Traders is a specialist organisation that supports the development of commercially viable social enterprises throughout Australia. The Social Traders website also offers an excellent directory of business and social enterprise resources, state-by-state.
  • Business Enterprise Centres Australia: Your local BEC will be able to offer you current literature and publications on topics such as tax, GST & PAYG, business registration, marketing and business bench marks
  • The Difference Incubator (TDi) develops investment ready enterprises that create positive social impact and are financially sustainable – freeing them from ongoing reliance on philanthropic or government grants.
  • Benefit Capital offers a range of impact investing services including helping social enterprises raise capital, corporate structuring for impact, reporting on impact and emerging impact investment opportunities.
  • The Australian Centre for Social Innovation (TACSI) uses the best of design, social science and business thinking to develop new programs in the community, and to build the innovation capability of the social sector.
  • Impact Investment Readiness Fund (IIRF) is a $1 million fund established to provide mission-driven organisations with targeted advice and support to help them secure investment for scaling up their social or environmental impact.