SVA Diversified Impact Fund    

Investor update, 31 July 2019

Photo: Visualisation of Duckett Street frontage of Nightingale CRT+YRD, designed by Hayball. Credit: Hayball.

Dear Investor,

It is with great pleasure that we announce another investment - Nightingale Village. The subordinated debt investment in Nightingale Housing will help construct the Nightingale Village, an almost 200 apartment, carbon-neutral project in Duckett Street, Brunswick consisting of six architecturally-designed buildings on former warehouse sites. 20% of the balloted units have been allocated to community housing providers and 42% to first home buyers. Read more on this below.

Our ultimate goal is to create social impact in Australia by investing in social purpose organisations that have a demonstrated track record and are looking for capital to scale. We welcome any leads or ideas you may have.

Yours sincerely,
Michael, Alex and Nathan

Key Investor updates

• Capital call: The next capital call is dependent on deal flow and is anticipated to be in the final quarter of the 2019 calendar year. In any case, investors will be provided with notification of the next capital call at least 30 days in advance.
• Annual Report: Our first annual report will be made available to investors in October 2019.
• Tax Statements: For the year ending 30 June 2019 tax statements will be issued shortly. Should you require confirmation of holdings please contact our registry at info@oneregistryservices.com.au who will be able to provide these.
• AMIT election: Note that the fund has made an AMIT election, as such any distribution made in the future will be treated as a capital distribution. If you have any queries as to the impact this will have for you personally please seek independent advice.
• Unit Price: The unaudited unit price as at 30 June 2019 was $0.3733 and audited accounts will be made available with the Fund’s annual report.

Nightingale - tackling affordable housing

Nightingale Housing is leading a housing revolution in Australia by facilitating the construction of multi-residential buildings that are financially, socially and environmentally sustainable. The DIF has provided $1.5 million of subordinated debt alongside SVA’s Social Impact Investment Trust for a total $21.4 million investment. The investment in Nightingale Village will contribute towards the construction of almost 200 8.5 star environmental apartments. Under the Nightingale model, 20% of apartments are allocated to community housing providers for affordable housing. The Village is a collection of six neighbouring buildings, each using the social, environmental and financial sustainability principles of the Nightingale model.

Investment: The Fund will invest $1.5 million in Nightingale Village, in the form of a subordinated construction loan with an interest rate of 15% p.a. The term of the facility is two years from the date of the initial advance. The Fund will invest on the same terms as SVA’s Social Impact Investment Trust. Construction will commence in late 2019. Repayment will come from the proceeds of sale of units and commercial spaces upon completion of construction.

You can read more about the investment in this article in The Age.  

Resolve SBB service delivery update

The Resolve Social Benefit Bond (Resolve SBB) supports people experiencing significant mental health issues in NSW, with the Resolve Program delivered by Flourish Australia. Financial Close was in mid-2017. Since the Resolve SBB commenced at the end of June 2017, Flourish Australia has recruited the Resolve team, established two Resolve centres in Orange and Cranebrook, and commenced supporting people experiencing mental health illness in the Western NSW and Nepean Blue Mountains Local Health Districts (LHDs).

At the start of October 2018, the Resolve Program celebrated its first year of service delivery and early indicators suggest that the program is having a positive influence on the lives of the 167 people that participated in the program over that year.

Participants are engaging well with the different program elements, including people staying overnight at the Resolve centres, receiving face-to-face support, and calling the warm line for phone-based support.

Given the first Investor Report only covers the first 12 months of service delivery,  the results data covers a relatively small number of individuals and a short amount of time, and results need to be interpreted with caution. Nevertheless, early results are encouraging. The Resolve Program does appear to be reducing hospital admissions and emergency department visits, measured relative to a matched Control Group. 

Sticking Together service delivery starts

We are very pleased to advise that the Sticking Together Social Impact Bond (SIB) formally started service delivery on 1 April 2019 as planned. SYC has recruited and trained the Sticking Together Project team in the three target regions (Southern Highlands and Shoalhaven, the Illawarra, and the City and Inner South in Sydney). All roles have been filled and the team is very excited that coaching is now officially underway.

136 young people have already been enrolled into the program and have commenced their 60 weeks’ coaching. The team will continue to work with jobactive partners to fill all the 225 coaching places (25 for each of the nine coaches). The young people enrolled in the program have already had some preliminary coaching support, and some have even been successful in securing a job. SYC has also developed a new ‘app’ to support participants and their coaches. The app enables participants to track their goals on their journey to gain and maintain work.

Here’s a Q&A with Kellie Checkley, Head of the Sticking Together Project where you can read more about her passion for the Sticking Together Project. 

Got a great deal referral?

Do you know a great impact organisation (either not-for-profit or for-profit) that is generating revenue and ready to scale? We have the best investors in Australia, so we listen when you recommend an investment to us. Our investment criteria are:

• Ability to create meaningful social outcomes for people experiencing disadvantage in Australia
• Either at least $500,000 annualised revenue (for equity) or security available (for loans)
• Minimum investment ask of $500,000

Send your referrals to makeadif@socialventures.com.au

Fund portfolio

Interested in angel investing?

The following two social purpose organisations are seeking capital, but are too early stage for the Fund.

• Good Human – Marketplace for all NDIS services and products

• Conpago – Tech helping elders stay connected with community and family

Contact Nathan Sowell at nsowell@socialventures.com.au for more information.

Impact Investment Summit 2019

SVA is a Supporting Organisation of the Impact Investment Summit Asia Pacific 2019. This year the Summit will bring together experienced impact leaders with great stories and learning to share around wisdom, courage and action.

SVA is delighted to be able to offer DIF Investors a 10% discount. Use the discount code SVA2019 when registering at the checkout.

The two-day program on 13 and 14 November in Sydney will catalyse, seed, ignite and amplify impact across key impact themes, leaning in to specific Sustainable Development Goals and aligning those with what is critical to the region. Key impact themes include: Gender Lens Investing; First Australians, economic inclusion and diversity, clean energy and the environment, and housing. 

The information in this email is for general information purposes only and in passing it and any other material on to you Social Ventures Australia (SVA) is not providing you with any legal, tax, investment, financial or other advice. Nothing in this email should be construed or relied on as a representation, recommendation, endorsement, solicitation or offer by SVA or any third party in relation to any organisation, financial products or other investment. Before making any commitment of a legal or financial nature, you should carry out your own inquiries and seek such professional advice as you may require. SVA does not receive any remuneration or other benefit for passing on this information.

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