Social Impact Investment Trust

Social Ventures Australia has partnered with HESTA to establish one of Australia’s largest impact investing funds. After committing an initial $30 million which has been deployed towards investments that generate both a measurable social impact and a market-based financial return, HESTA has reaffirmed its commitment to growing the Australian impact investment market by allocating a further $40 million to SVA.

SVA is the investment manager of the Social Impact Investment Trust (SIIT), a fund with the purpose of allowing HESTA to make direct and indirect social impact investments utilising the skill, experience and assistance of SVA. The SIIT was launched in 2015 with an initial commitment of $30 million, making it at the time one of Australia’s largest dedicated impact investment funds.

Investments will continue to be made across a range of social enterprises, businesses and projects which have a specific focus on delivering both sound financial returns and a demonstrable social impact in sectors such as health, housing and community services. The fund makes loans and equity investments and also invests in Social Impact Bonds.

The Fund is not intended to replace government funding for social services, does not provide grant funding and is not a venture capital or angel fund.

Investment Characteristics and Criteria

SVA and HESTA are seeking to make investments in organisations and enterprises established in Australia and may include the following:

  • senior and/or subordinated debt
  • equity capital (including ordinary shares, convertible and/or redeemable preference shares, convertible notes and/or warrants); and
  • Social Impact Bonds.

The target minimum investment size is $1 million, with the actual amount of individual investments to be determined on a case-by-case basis by SVA.

To be considered for investment the organisation or enterprise should have the following characteristics:

  • be an established entity with proven revenue and a trading record
  • have established governance and management structures
  • be mission driven and work towards a demonstrable and direct social impact; and
  • seek positive social change in a range of sectors including, but not limited to, education, employment, social and affordable housing, family and community connections, disability, health care, aged care, child care, social services and indigenous areas.

Application Process

SVA and HESTA are currently seeking investment opportunities that meet the above characteristics. To apply for investment or loan capital from the fund, please contact SVA on impact-trust@socialventures.com.au or (02) 8004 6740. SVA will endeavour to respond to your enquiry within two business days.

If you do not meet the above criteria, please visit the SVA Diversified Impact Fund webpage which has different investment criteria and might be more applicable.

Performance

The Social Impact Investment Trust was established on 6 August 2015. As the Fund Manager, SVA will report annually on the performance of the Fund.

The SVA Social Impact Fund is a similar fund, which can be referred to for indicative track record.

Portfolio Details

As at 30 June 2017, the Trust’s portfolio includes three senior debt investments, two social impact bonds (SIBs) and one additional investment in documentation.

Aspire Social Impact Bond

The bond funds an innovative program for people experiencing homelessness in Adelaide.

Aspire Social Impact Bond

Summary: The bond funds the Aspire program, which is delivered by Hutt St Centre, an Adelaide based homelessness services specialist.

Location: South Australia

Date of initial investment: March 2017

Investment size: $500,000

Investment type: 7.75-year Social Impact Bond

Loan purpose: To fund the establishment and delivery of the Aspire Program in Adelaide.

Social aim: Provision of stable accommodation, job readiness training, pathways to employment and life skills development for people experiencing homelessness.

Social impact area: Homelessness

Done

Glenview

$18,970,000 loan to fund the design and construction of a specialist dementia care facility.

Glenview

Summary: $18,970,000 loan to fund the design and construction of a specialist dementia care facility.

Location: Hobart, Tasmania

Date of investment: Funds committed, funding yet to be drawn

Investment type: Secured senior debt

Purpose: To fund the design and construction of a specialist dementia care facility.

Social aim: Construction of an innovative, specialist aged care facility, with a number of beds to be allocated to people who require an affordable solution, or who are at risk or currently homeless.

Social impact area: Aged Care

Done

Horizon Housing

$6,700,000 loan for the development of social and affordable housing.

Horizon Housing

Summary: $6,700,000 loan to Horizon Housing Solutions Ltd for the development of social and affordable housing.

Location: Robina, Queensland

Date of initial investment: December 2015

Investment size: $6,700,000

Loan purpose: To finance the purchase of management rights for 995 existing affordable housing properties and the future development of up to 60 new homes.

Social aim: Development of social and affordable housing stock.

Social impact area: Social and Affordable Housing

Done

Life Without Barriers

$1,000,000 loan for the acquisition of disability housing.

Life Without Barriers

Summary: $1,000,000 loan for the acquisition of disability housing.

Location: Toowoomba, Queensland

Date of initial investment: February 2017

Investment size: $1,000,000

Investment type: Secured, senior debt

Loan purpose: To fund the acquisition of four homes for persons with a disability in a mixed tenure development.

Social aim: Provision of new disability housing in the Toowoomba area.

Social impact area: Disability Housing

Done

Newpin Queensland Social Benefit Bond

The bond funds a program designed to strengthen family engagement and reunite children safely with their families.

Newpin Queensland Social Benefit Bond

Summary: The bond funds the Newpin Program in three regions across Queensland

Location: Queensland

Date of initial investment: June 2017

Investment size: $1,500,000

Investment type: 7.25-year term social impact bond

Loan purpose: To fund the operation and establishment of the Newpin program in Queensland.

Social aim: Restoring children in the out-of-home care system to the care of their families, with a specific focus on working with First Australian families.

Social impact area: Out-of-home care / First Australians

Done