Earlier this week the Purpose Capital Impact Fund was launched at an event in Tauranga. The keynote speaker was Robbie Tindall who spoke about his work with K1W1, which has invested $250m in NZ technology and innovation companies, and his experience as a Trustee of the Tindall Foundation. It was a truly inspiring night.
At this event New Zealand’s third impact investment fund, Purpose Capital, was launched and Enterprise Angel’s third fund, EA Fund 3 was pitched. Both funds will make a difference, whether that be a social/environmental impact (Purpose Capital) or a business/economic impact (EA Fund 3).
The Purpose Capital Impact Fund (PCIF) is a collaboration between the New Zealand commercial sector and the philanthropic sector. As such, it combines the power of the commercial business and investment sector with the expertise of the philanthropic to bring new resources and capital to businesses working to solve social and environmental problems.
The Fund is seeking to raise $20 to $30 million to generate meaningful impact and financial returns in its regions and across New Zealand. $15m has been committed to date. The types of investees and the Fund’s focus areas look somewhat different than impact funds overseas due to opportunities and challenges unique to New Zealand. The Fund will invest in a diversified portfolio of primarily asset backed investments.
Around the world, investors are looking for ways to not only make money from their investments, but also to make a difference. Whether it is concern about poverty, housing, or the environment, more and more of us are feeling the urgency to change the way we invest and do business. Investors want to back innovative solutions to major environmental and social problems.
Globally, impact investing is on an upward trajectory. The Global Impact Investors Network (GIIN) estimates that there is now US$228 billion in impact investing assets, which represents a doubling from the year prior.
PCIF is the first fund of its kind in New Zealand. Building on the experience of some of New Zealand’s biggest trusts and New Zealand’s largest investor network, it harnesses the power of the philanthropic and commercial sectors, joining them together in one vehicle. As such, it combines expertise in philanthropy and social change with a track record of investing in innovation.
To be clear, the PCIF will not engage in traditional philanthropy or financial return-only investment. Instead, it will mobilize new capital to invest in the organisations and projects tackling some of our greatest, most complex problems – while providing consistent financial returns for both investors and the wider community.
The people behind PCIF are leaders in investment and social entrepreneurship. Bill Murphy, the Executive Director and Founder of Enterprise Angels, New Zealand’s largest angel investor network, has over 10 years of experience assessing thousands of investment opportunities, overseeing investment of nearly $40 million in a portfolio of 80 companies, and managing three Funds and an online investing platform. Kristen Joiner, Impact Investment Director, is a social entrepreneur and founder of multiple social change ventures, brings 25 years of domain expertise in climate change, environmental sustainability, education and training, green and affordable housing, and gender – across the U.S., Africa and South America. Other members of the Board, Executive and Investment Committee also bring extensive investment, impact, and fund management experience.