Diversified Impact Fund  

Dear investor,

We are writing to provide you with an update on the continued investment of the Diversified Impact Fund (DIF).

It is with great pleasure that we are announcing a $750,000 preferred equity investment in Hayylo. Hayylo is a digital platform that helps home care clients and their families know when and by whom their care will be delivered, access their care plan, and view up-to-date billing information. More information on this investment is provided below.

The pipeline of investment opportunities for the DIF is the strongest it has been since the inception of the Fund and we remain committed to investment in social purpose organisations that create social impact in a range of communities in Australia. We have had additional investments before the investment committee in late December, and more in the pipeline that we look forward to informing you about in the new year.

Based on DIF’s pipeline, we believe the third and final capital call (30%) will be required in mid-2022. We also expect to return roughly $3M to investors in the first half of 2022 as investments in Nightingale Village, Nightingale Ballarat and AccessAccom’s Sky Gardens projects repay.

We also wanted to share with you the news that Alex Oppes has decided he will move on from SVA at the end of April next year. Alex has spent the last 8 years working in SVA’s impact investing team, originally leading the successful deployment of the Social Impact Fund (SVA’s first fund) and negotiating the initial HESTA mandate. We thank Alex for his instrumental contribution to the set up and deployment of the DIF. Alex will continue to support Tim Pullen and the DIF team in an advisory capacity as needed.

Whilst Alex’s departure is a loss, we will be going to market for a new fund manager to join early next year prior to Alex leaving. Based on positive initial conversations with potential candidates, we are confident of successfully hiring an experienced professional who is strongly aligned with SVA’s values to continue deployment of the fund through to the end of the investment period in December 2022. If you would like to suggest a candidate, please get in touch.

The DIF benefits from a strong and committed Investment Committee who continue to provide oversight and support of the investment decisions of the fund. The IC consists of Rob Koczkar, Michael Lynch and Rebecca Thomas, supported by Independent Advisors Brigitte Smith, Sarah Buckley and Tim Johansen. SVA CEO Suzie Riddell is an observer to the IC. The wider SVA impact investing team is continuing to grow and will maintain support with the origination, execution and management of the investments. Co-investment opportunities across the SVA-managed Social Impact Investment Trust will also continue to be explored.

We wish you a safe and restful end of year, and look forward to more updates in 2022. 

Kind regards, 

Key investor information

3rd investor capital call (final 30% of total commitment)
The final call is dependent on deal flow and deal pipeline is strong. SVA will give investors no less than 30 days written notice of the third capital call. At this stage, we expect this to occur in mid-2022.

Unit Price
The unit price as at 30 September 2021 was $0.6348 (unaudited), down from 30 June 2021 of $0.6926 (audited). The reason for this was the return of capital to investors from the partial sale of DIF’s investment in Maths Pathway. Quarterly unit prices are available here.

Hayylo is an aged care communications software business founded by Gregory Satur and Simon Heaysman. SVA lead the $1.3M Series A round, which also included investment from Sprint VC. As part of the investment, SVA will appoint a Director to Hayylo’s Board.

Hayylo bolts onto aged care providers’ existing client management systems, rostering, scheduling and finance tools, thereby providing access to vital information for clients and their families. The platform is a critical piece of infrastructure required to help aged care providers give clients and their families clarity about which carer is showing up and when, the ability to make changes easily and access live billing information.

The need for improved communications and access to information is driven by growing consumer expectations, the Aged Care Quality Standards and changes arising from the Royal Commission into Aged Care Quality and Safety. We spoke to numerous aged care providers who confirmed the need for better communications technology in the space and we believe Hayylo’s multiple award-winning platform is best placed to meet providers’ needs in Australia.

The investment comes on the back of a strong financial year for Hayylo, which featured a doubling of its client base to now include Chorus, integratedliving Australia,  Mercy Services, Southern Cross Care Tasmania, Life Care, NovaCare, Carrington Care, ADSSI Limited,  and Churches of Christ in Queensland. 

The funding will be used to increase Hayylo’s user base of more than 40,000 older Australians and to add further functionality to its product.

How you can help? If you’re aware of any aged care providers that need a better communications platform, then please let us know at makeadif@socialventures.com.au

Synergis Fund in the news

As reported in the Australian Financial Review, Synergis has received $137M of equity investment by Goldman Sachs Asset Management, which will help deliver much needed homes for people with disability.

SVA and Federation Asset Management established the Synergis Fund with a vision for every person with disability in Australia to have access to a high quality, safe and stable home. The model puts people with disability at the centre, with a core focus on generating positive outcomes. Since its establishment in 2019, Synergis has committed over $70 million across 50 properties that will provide homes for over 150 Australians living with a disability.

DIF’s $2M investment in Synergis played a key role in helping achieve this milestone, alongside other investors including the Paul Ramsay Foundation, HESTA, Laurie Macri’s Portcullis House and Suncorp Group. The investment by Goldman Sachs Asset Management helps achieve DIF’s original social investment thesis, which was that investment would crowd other investors into Synergis, address the under-supply of appropriate SDA stock, and further embed the Disability Housing Outcomes Framework as the industry standard.

Fund portfolio

Interested in angel investing?

Enabler Interactive is seeking capital, but is too early stage for the DIF. Enabler Interactive is an early-stage SaaS company solving the crisis of training 300,000+ new disability support workers over the next three years. They are raising a pre-seed investment round to finish development of the 3D simulation-based disability training and onboard 40+ disability service providers on the waiting list. Let us know if you’d like an introduction

Got a great deal referral?

Do you know a great impact organisation that is generating revenue and ready to scale? Please let us know! 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

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.