- SVA is raising $10 to $15 million to fund a diversified portfolio of impact investments
- The Fund is the first of its kind in Australia, providing 20% downside protection from leading philanthropists, including Joseph Skrzynski, Geoff Wilson and their families, and the Bob Bryan Foundation
- The Fund has also attracted cornerstone investment from Carol and Alan Schwartz through the Trawalla Foundation
- The Fund offers investors an opportunity to generate financial returns while making a meaningful social impact on the lives of people in Australia.
Social Ventures Australia (SVA) announces the launch of the SVA Diversified Impact Fund, a social impact investment fund offering investors the opportunity to generate financial returns while making a meaningful social impact on the lives of people in Australia.
The Fund is the first of its kind in Australia, as it provides 20% downside protection from eight leading philanthropists at no cost to investors. Joseph Skrzynski AO, Co-Chairman & Co-Founding Partner of CHAMP Private Equity, explained why he and his family chose to back the Fund:
‘Impact investing provides opportunities not available in mainstream investing. This fund is a great example. My family and I are excited to support a portfolio of organisations that help people who need it the most.’
‘The Fund is also ground-breaking in its approach to protecting investors from downside risk, which I hope will attract more people to investing for impact. I am excited to be a part of the next step in the development of the Australian impact investing market.’
The Fund will have a broad mandate with the flexibility to invest in pioneering impact investments. This will give investors access to a diversified range of socially impactful investments, including social impact bonds and debt and equity investments in impact organisations and housing projects. With SVA’s track record in innovating the market, it offers investors the opportunity to take advantage of the latest in impact investing.
The focus of the Fund will be in the areas where SVA has deep expertise, including education, employment, housing, First Australians, disability and health. The Fund succeeds the $9 million SVA Social Impact Fund, which returned 7% per annum and created 160 jobs, 22 dwellings, education programs and accessible health services for people experiencing disadvantage in Australia.
SVA CEO Rob Koczkar commented:
‘It is exciting to be able to offer investors a carefully curated portfolio of opportunities across the landscape of social impact investing. These projects will make a meaningful impact to people living in Australia.
“SVA has a track record of pioneering success in the market, having launched Australia’s first social impact bond in 2013, and this latest development builds on that expertise and spirit of innovation.
“The ability to provide a fund with downside protection will not only deliver meaningful social impact for people living in disadvantage in Australia, but also provide compelling returns, is incredibly exciting. We believe that this new structure will make impact investing even more attractive, and we anticipate that this will lead to a new wave of investors in the sector.”
Carol Schwartz AM, a cornerstone investor in the new fund, commented:
“The Trawalla Foundation supports SVA because they are continually developing and innovating Australia’s social investment marketplace. Our Foundation was the cornerstone investor in the SVA Social Impact Fund, one of the first impact investing funds in Australia to invest debt and equity in leading social enterprises. This next fund, the SVA Diversified Impact Fund, has an innovative structure which includes downside protection provided by philanthropic investors. It is a smart application of philanthropic capital to support the growth of the impact investing market.”
The term of the Fund is ten years. The Fund aims to make 10 to 15 investments between $500,000 to $1.5 million. The minimum capital commitment from investors is $50,000. The first close of the fund is targeted for 31 December 2017.
If you’re interested in investing, or would like to know more, contact Alex Oppes (firstname.lastname@example.org) or Nathan Sowell (email@example.com).