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WA Impact Fund

A new impact investment fund, with a $20m anchor investment from WA Super, providing capital for positive social and environmental impact in Western Australia.

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1

This Fund

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Mandate, Objectives, Strategy

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Impact Targets

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Fund Snapshot

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Investment Areas

Australians are developing an ever-broadening understanding of wise investing. We want to know our resources are working towards a better future for ourselves, for future generations and for the broader society in which we live.

Financial returns are important, but they are just one part of the picture.

The WA Impact Fund plans to generate strong financial returns for investors, while also delivering deliberate and measurable social and environmental benefits in Western Australia.

 

The Mandate, Objectives & Strategy

Mandate
  • Real Assets: Regenerative agriculture and property
    eg: farming that increases biodiversity, enrich soils, supports bio sequestration and/or improves water management.
  • Energy Solutions
    eg: rooftop solar, batteries and energy efficiency for community assets (including community housing, aged care, schools, childcare and community centres).
  • Social Finance
    eg: investments in social enterprises or purpose-driven startups.
  • Further Social Outcomes
    eg: social impact bonds
Objectives
  • To provide Unitholders with access to a diversified portfolio of assets that deliver positive social and environmental impact.
  • To catalyse the social investment sector in Western Australia.
  • To deliver attractive risk-adjusted returns that reflect the underlying investments.
  • To generate measurable social and environmental benefits by funding assets and organisations that generate positive social outcomes within Western Australia.
Strategy
  • To invest in a portfolio of assets that are at varying stages of development, construction and operation and include, but are not limited to, real assets and financial investments.
  • To acquire assets that meet the Investment Mandate of the Fund and diversify the portfolio.
  • To utilise a partnership model that generates investment opportunities and broadens the social investment ecosystem in Western Australia.

Impact Summary

Our Target Impact

The Fund’s investments will aim to deliver measurable impact across a number of the UN Sustainable Development Goals, including,

Avoid Harm

Benefit people
and the planet

Contribute
to solutions

Potential Impacts:

  • Increase renewable energy deployment
  • Enable greater access and availability to affordable, reliable and modern energy services
  • Deliver cost savings for community organisations through energy solutions deployment

Potential Impacts:

  • Demonstrate business can be force for good
  • Increase meaningful employment opportunities
  • Providing appropriate finance so that for purpose organisations can scale up

Potential Impacts:

  • Support delivery of social outcomes
  • Enable community organisations to scale up
  • Ability to support vulnerable and marginalised populations

Potential Impacts:

  • Increase the proportion of agricultural area under productive and sustainable agriculture
  • Support bio sequestration, improve water management, improve soil quality and deliver biodiversity benefits
  • Local employment

Key Fund Details *

The Fund
WA Impact Fund
Type & Structure
Closed-end unit trust. Australian domiciled, unregistered managed investment scheme.
Return profile
The Fund intends to provide appropriate risk-adjusted returns to Unitholders, while intentionally focusing on delivering social and environmental outcomes and developing sectors in Western Australia. There is no overall target return across the portfolio, however, each investment will require market-based returns reflecting the risks of that investment. These returns are expected to range between 5% to >12% per annum on an IRR basis. The overall portfolio return will be determined by, amongst other things, the performance of the underlying asset, the asset mix and deployment timing.
Target distributions
The Fund will seek to deliver returns through the combination of income and capital gains. There is no target level of distributions. However, at the Trustee’s discretion, distributions may be made quarterly where free cash flow exists. Distributions may comprise a combination of income, capital returns and capital gains.
Term
A maximum term of 20 years, unless extended upon recommendation by the Trustee and approved by a special resolution of 75% of Unitholders.
Liquidity
Within 5-to-7 years after the fund’s first close, the Trustee may consider liquidity opportunities. However, this is subject to market conditions which may provide liquidity opportunities before or after this time.
Investor Eligibility
All Unitholders must be wholesale clients as that term is defined in the Corporations Act 2001 (Cth). WA Super has a right to veto non-WA Super investors in the Fund.
Management Fee
1.2% p.a. on committed capital until the fund is fully invested or the five- year investment period expires, then,1.2% p.a. on Net Asset Value.
Minimum Subscription
$100,000, unless otherwise determined by the Trustee
Manager
Impact Investment Group Pty Ltd.
Trustee
Impact Asset Management Pty Ltd

Investment Area: Real Assets - Regenerative Agriculture & Property

Our food systems can be run with sustainable methods, and even positive outcomes for the climate and an inclusive economy. Regenerative agriculture can increase biodiversity, enrich soils, help sequester carbon, improve water management and enhance community resilience.

The Opportunity

Agriculture and food exports contributed $8.5 billion to the Western Australian state product in 2016/17, with strong demand from other Australian states and global export markets.

We see potential in applying new regenerative farming techniques that provide higher quality, more valuable produce, with long-term sustainability.

We also see opportunities for social businesses in the food distribution systems.

Partners
  • Tiverton Rothwell Agriculture
    Regenerative Agriculture Specialists
  • Impact Seed
    WA capacity builder for impact investment and social enterprise development

Investment Area: Energy Solutions

Australia is transitioning to a healthier, sustainable energy system. Fundamental changes are taking place in the Australian electricity markets. We are moving away from ageing fossil fuel generators towards cleaner energy production.

The Opportunity

West Australia has strong solar irradiance and has seen rapid growth in small-scale solar generation, but still has a low overall penetration of renewable energy generation compared to other states.

We expect these conditions to provide investment opportunities in behind-the-meter systems, including rooftop solar, in coming years.

The Fund will particularly target opportunities that can deliver broader positive social impact by delivering these solutions to community housing organisations, schools, hospitals and other social groups.

Partner: Boom Power

Specialists in planning, selecting and delivering energy solutions for community organisations.

Investment Area: Social Finance

Every business has an impact with its operations, whether that impact is positive or negative. IIG believes that business can be a force for good.

Well managed businesses can deliver positive social and environmental outcomes, while generating returns for investors, value for customers, and employment opportunities in local communities.

The Opportunity

Western Australia has a developing social enterprise sector with considerable activity in the for-profit and not-for-profit sectors. We want to finance these organisations driving positive change in their communities.

Partners
  • Impact Seed
    WA capacity builder for impact investment and social enterprise development
  • IIG Giant Leap Venture Capital Fund
    Australia’s first VC fund targeting impact start-ups.

Investment Area: Social Impact Initiatives

Governments and not-for-profit organisations regularly struggle to keep up with the demand for their services, a pattern exacerbated by long-term structural demographic trends.
Governments and Non-Governmental organisations that can attract private sector capital and provide both a return on and repayment of that capital only when outcomes are achieved, have been able to increase their service provision to citizens.

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

This document is not an offer to invest. It contains assumptions and forward looking statements that may prove inaccurate. It provides only summary information, which is therefore incomplete and may omit information you could consider important. The Trustee of the WA Impact Fund has issued an information memorandum, includes the 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 WA Impact Fund (“Fund”). This brochure contains general information and does not take into account your objectives, financial situation or needs. Before making a decision to invest you should seek your own professional advice.