NEW YORK: There are a number of emerging social impact ventures with potential for super funds, says Ian Learmonth, executive director at Social Ventures Australia (SVA). “It is a worldwide opportunity,” he said.
The opportunity for investors is allocations of between $10 million to $50 million in the form of debt. For many large super funds this is not enough to get involved, but the intention is to start somewhere and grow the space.
“You have to think creatively about how you do these,” says Learmonth, who has already completed one such development with the backing of high net worth individuals and foundations and the involvement of social housing groups.
In the UK, where high demand for housing is leading to great pressure on councils to produce social housing, the model is already live. Lacking ready capital, some councils have used institutional investment to fund the building of social housing.
The London-based manager Cheyne Capital has helped fund the building of 80 units for Luton Council (north-west of London). The council has guaranteed the letting of each unit, whilst the building and maintenance of the units is the responsibility of a housing association with a strong record in building such structures. All the investors have to do is raise the money…