Diversified Funds fund

Impact Alternatives Fund

A diversified portfolio of impact investments, targeting low correlation and attractive risk-adjusted returns.



The Objectives, Strategy & Impact Thesis

Objective

To invest in a diversified portfolio using impact investment strategies that aim to deliver:

  • a combination of meaningful social and environmental benefits;
  • an income yield each year; and
  • capital growth over the medium to long term.
Strategy
  • Build a diversified portfolio of defensive and growth assets that are typically less correlated to traditional asset classes and invested across a number of industry sectors.
  • Invest predominantly in other funds or structured pools of assets.
  • Focus the majority of investments in Australia, with direct offshore exposure capped at 20% of the Fund’s assets.
Impact Thesis
  • The Fund aims to have a mix of environmental and social impacts across its investment portfolio.
  • The Fund’s primary impact thesis is to drive net positive impact by providing an attractive investment option for mainstream investors, thereby building a significant and scalable pool of capital which can be deployed into new and existing impact projects and assets.

Investment Strategies

Renewable Energy Infrastructure

Maximum Exposure: 30% #

Investments that provide finance for renewable energy infrastructure, including solar farms.

Impact Private Equity and Venture Capital

Maximum Exposure: 20% #

Investments that provide equity capital to businesses or projects seeking to create a positive social or environmental impact as a core part of their business model, including disability housing and early stage purpose-driven businesses.

Impact Private Debt

Maximum Exposure: 40% #

Investments that provide debt capital to businesses or projects seeking to create a positive social or environmental impact as a core part of their business model.

Social Impact Bonds & Payment by Results

Maximum Exposure: 20% #

Investments in ‘pay for success’ models that aim to address a social or environmental issue.

Environmental Assets

Maximum Exposure: 20% #

Investments that aim to deliver environmental benefits through active and deliberate positive resource management.

Regenerative Farming

Maximum Exposure: 30% #

Investments into agriculture and aquaculture assets that use regenerative farming practices.


Key Fund Details & Financials [1]

Return Objective
6-10% p.a. pre-tax, post fees and costs
Income Yield Objective [2]
3-5% p.a. - distributed quarterly.
Correlation
Targeting low correlation to public equities, bonds and property.
Liquidity [3]
Quarterly redemptions after a lock-up period of up to three years for first close investors
Management Fee [4]
0.5% p.a. of the Fund’s NAV
Performance Fee [5]
10% of returns above hurdle rate of 10% p.a.
Manager
Impact Investment Group
Trustee
Impact Asset Management Pty Ltd
Minimum Size (first close) [6]
$25 million
Maximum Size (first close) [6]
$70 million
Minimum Application
$100,000
Investor Eligibility
All Unitholders must be wholesale clients as that term is defined in the Corporations Act 2001 (Cth).

Target Investments *

Solar Fixed Interest Loan

Construction and early operation of a large solar farm in South Australia, helping to green the industrial sector.

Target Return: 11-13% IRR

Disability Housing Fund

A diverse range of housing to meet the needs of people with a disability.

Target Return: 7-10% IRR

Giant Leap VC Fund 2

Venture Capital investments into rapidly scalable, early stage businesses that fuse profit and positive impact and accelerate us towards a better future.

Target Return: 20% IRR

Agriculture Impact Fund

A portfolio of regenerative agriculture and food production assets in Australia.

Target Return: >12%


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* This summarises potential early investments, however, no definitive commitments have been made and the Trustee maintains full discretion over all investment decisions.

# Maximum exposure levels determined on the basis that the Fund has fully invested a minimum of $50 million in capital. Prior to this, allocations may be above those levels.

1 As with this entire website, this is summary information only. Please refer to the Fund information memorandum for further details.
2 Based on the Fund being fully invested. The timing and amount of distributions will be determined at the discretion of the Trustee.
3 Subject to conditions provided in the Fund IM and constitution.
4 The Trustee estimates the aggregate management fees, including the fees charged on the Fund’s underlying investments and this Fund’s 0.5% management fee, will range from 1.25% to 1.75% p.a. of the Fund’s NAV. Subject to the Fund reaching a significant scale, the Trustee intends to seek reductions on the fees related to the Fund’s underlying investments. For IIG products, a minimum reduction of 10% of the underlying management fee is expected to be provided to the Fund.
5 Subject to a high water mark.
6 After the first close, IIG aims to achieve significant scale through subsequent capital raisings in the medium term.

Please refer to the Fund information memorandum for more detail. You must have read the Fund information memorandum before making a decision to invest.

The Trustee of the IIG Impact Alternatives Fund will issue an Information Memorandum (IM), which will include the Trustee and manager’s assumptions, risks and other important information. Investors must have read that Information Memorandum before making their final decision to invest. This document and the information contained in it is presented to you as a wholesale client (as defined in the Corporations Act). None of Impact Asset Management Pty Ltd ACN (635 400 958) (“Trustee”), Impact Investment Group Pty Ltd or their officers, employees or agents guarantees a return of capital or the performance of the IIG Alternatives Impact Fund (“Fund”).