New $280m social purpose fund
7 December 2022 at 4:26 pm
A new private credit fund will provide grants of $10 to $20 million to early stage for-purpose organisations.
A new philanthropy-backed private credit fund and social purpose portfolio management firm aims to support the for-purpose sector.
The Community Capital Credit Fund is the product of a joint partnership between Australia’s leading superannuation funds and philanthropic foundations, including Australian Retirement Trust, Minderoo Foundation, MLC Insignia and Legalsuper.
See more: Wave of collaboration across investors driving ESG change
Co-founder and executive portfolio manager, Laurence Marshbaum OAM, said the fund will provide investors with exposure to a diversified portfolio of top tier global private credit funds, all of which have been chosen for their strong focus on social impact and responsible investment.
“The firms we have selected are all market leading global private credit funds with strong track records in private credit, are signatories to the UN PRI [Principles for Responsible Investment] and have made a commitment to creating a positive social impact in Australia,” said Marshbaum.
See more: Challenging year so far for sustainable funds: Morningstar
The fund’s portfolio is managed by its social purpose sister firm, Community Capital, which aims to create an ecosystem of entrepreneurs, drive positive impact, and tackle pressing community-based issues.
Community Capital will offer grants to between 10 and 15 social purpose organisations operating across Australia, which will be funded by donated management fees from the Community Capital Credit Fund, as well as through pro bono support.
Marshbaum said he “expect[s] the fund to grow beyond US$280m, enabling expected donations of between $10m to $20m to social purpose organisations over the life of the fund”.
The recipient organisations will be determined by an independent selection committee composed of leading grant-makers and assisted by 10×10, a volunteer-run philanthropic movement founded by Marshbaum that supports early-stage and grassroots non-profits.
See more: Social enterprise size and impact revealed
This new offering will offer vital support to the for-purpose sector, said Brian Benari, CEO of financial services firm Barrenjoey, the fund’s other co-founder and manager.
“By providing access to early-stage funding for social purpose organisations, Community Capital will help them scale to create more impact in their communities.
“This support will put them on a pathway to sustainability once they have demonstrated the impact of their model.
“Barrenjoey is proud to be creating a meaningful social impact through one of our Private Capital funds. These funds act as an extension of our capabilities in private markets, and the Community Capital Credit Fund will help investors seeking to generate strong returns while achieving meaningful social impact.”
See more: Australia takes steps towards sustainable finance framework
