SVA to Manage New Social Impact Fund
28 June 2012 at 9:57 am
Social Ventures Australia (SVA) is to manage a new $8.6 million Social Impact Fund making it the third organisation in the Federal Government’s Social Enterprise Development and Investment Funds (SEDIF) Scheme.
The Minister for Employment Participation Kate Ellis says the announcement brings the total capital worth of the partnership with private investors to $40 million.
The new SVA Social Impact Fund has already approved its first loan recipient, North Yarra Community Health.
SVA says the $300,000 loan will go to North Yarra Community Health to help them establish a new health practice. Profits from the practice will fund its community health centres in Collingwood, Carlton and Fitzroy.
“North Yarra Community Health has a long history of working locally to deliver a range of medical, allied health, social work and community development services,” Ellis said.
“The SEDIF is about helping social enterprises to grow their business and deliver more social outcomes. The new practice will provide a more sustainable and reliable income, which means that North Yarra can improve the quality and scale of operations at their community health centres.”
The social enterprise funds are set up to help address the difficulties that social enterprises can face in accessing private capital for the development of businesses.
The first two funds under the SEDIF were announced in August 2011. More than 250 social enterprises have already sought access to loans.
Last year, the Federal Department of Education, Employment and Workplace Relations launched the Social Enterprise Development and Investment Fund (SEDIF), which has been granted $20m to match funds with qualifying institutions. The first two funds to receive SEDIF funds are Foresters Community Finance and Social Enterprise Finance Australia (SEFA).
The Executive Director of Social Finance at SVA Ian Learmonth said that unlike the other SEDIF funds, SVA has raised well in excess of the Government’s matched funding bringing some 34 investors to the table.
He said SVA has had 10 years experience in venture capital and as a Not for Profit is in a good position to bring high net worth philanthropists, Foundations and Family Trusts into the mix.
He said SVA is also looking to identify funds to form equity in some of the social enterprises.
Social Ventures Australia will offer loans, subordinated debt and equity options with the $4 million Federal Government grant, which is being matched by an additional $4.6 million from individual and institutional investors.
Minister Ellis said the SEDIF is an excellent example of how the Government in collaboration with the private sector can deliver social and financial benefits to local communities.
“This is a business model of the future for how governments worldwide can deliver social policy in a financially viable way,” Ellis said.
“It’s important we get the word out to businesses and the community about the opportunities SEDIF has to offer.”