Impact Investing. Seeking Profit with Purpose

Transcription

1 Impact Investing. Seeking Profit with Purpose July 9, 2015

2 What is Impact Investing? OECD definition: The provision of finance to organizations addressing social needs with the explicit expectation of a measurable social, as well as financial, return.

3 Impact Investing A response to the urgent need to achieve innovation and scale in the way we tackle today s complex societal challenges. It aims to harness investment and entrepreneurial skills to drive social innovation in the same way that investment and enterprise drives business and technical innovation.

4 Global Call for Action OECD G8 United Kingdom Canadian Government Some Provinces

5 Why now? Social & economic problems are mounting Public funds are under pressure Government can t have all the answers Investors want investment with purpose Social enterprises are gaining traction

6 New approaches are needed: For addressing the pressing social and economic challenges, including new models of public and private partnerships which can fund, deliver and scale innovative solutions from the ground up.

7 The Nova Scotia Context Maturing social enterprise sector Co-operative & credit union sector worth $5.3 billion Exporting $650 million a year in RRSP, with less than 3% coming back as re-investment Propensity for supporting private sector solutions Huge social & economic challenges Capital gap

8 Nova Scotia. Has invested heavily in private sector funds & initiatives $20 million: Build Ventures Call for a new fund in 2015 NSBI, InnovaCorp Invest NS

9 A NS Call to Action: Its time to level the playing field

10 The Infinity Fund Nova Scotia s 1 st Impact Initiative of the NS Co-operative Council in partnership with other local, provincial, national & international partners A Call to level the playing field

11 Our Credibility & Track Record Manage an $88 million high risk debt lending program Loan losses less than 5% over 12 years Financed over 1700 businesses Created & maintained over 12,000 jobs Infrastructure in place Province wide reach Just received top star * rating from Deloitte (who completed an independent audit)

12 Mission The Infinity Impact Fund will serve as a catalyst, leveraging financial, human and civic resources to enable Nova Scotia businesses to grow and flourish, and to enable traditionally underserved people to participate more fully in Nova Scotia s economy.

13 Infinity Fund A fund without limits Will invest in an infinite # of business structures Infinite # of social benefit projects Co-operation and partnerships with other organizations Tailor made and responsive products: equity, quasi-equity, debt, convertible debt, subordinated debt and combinations thereof

14 Infinity fund Designed to bestow infinite beneficial impacts on Nova Scotia communities Born of a group of advisors who possess infinite desire and commitment to Nova Scotia s prosperity Win-Win-Win-Win For investors, entrepreneurs, communities & government

15 Investors will receive a ROI through a credit union guaranteed investment certificate Capital: 1 st Round Being raised through institutional investors (co-operatives, credit unions, other funds & organizations, high net worth individuals) Province is asked to match

16 Investing. The infinity fund will invest in businesses and projects that demonstrate social, Environmental value/impacts as well as acceptable financial return. Selection priority will be given to those that can demonstrate positive impacts on Nova Scotia s most pressing issues.

17 Our difference.. IIF will accept a greater degree of risk than traditional funding agencies Repayment terms will be flexible and patient Won t compete with existing agencies but will collaborate and syndicate

18 Challenges: Proof of demand Existing Attitude: everything worth financing can find financing Bias: the social sector is not in the fund management business

19 Demand 5900 social enterprises in NS Social impact entrepreneurs Profit with purpose private businesses We will need a pipeline of investment ready opportunities

20 Tremendous opportunity But it will require collaboration & support Investors A receptive government Investment ready opportuities

21 This is Nova Scotia s Chance to Be a Leader.

22 Great leaders are those who are willing to take that first step, even when they don t know where the staircase will ultimately take them Martin Luther King