Impact Investing 1.jpg

Impact Investing

USING OUR INVESTMENT EXPERTISE TO SOLVE SOME OF AUSTRALIA’S LARGEST SOCIAL ISSUES

Through Michael Traill’s extensive experience as a pioneer in Australia’s Impact Investing industry, Carnegie is extremely well positioned to source and create large scale investments in this area, backed by sufficient capital to attract partnerships from larger for purpose groups and intermediaries to lead significant, socially-aligned transactions.

Carnegie co-ordinated an Impact Investing Working Group comprising the largest Australian super funds and industry and impacting investing experts.  Following the working group Carnegie identified various sectors where there are opportunities for larger scale impact investment.  These include:

  • Aged care;
  • Housing opportunities backed by the National Disability Insurance Scheme;
  • Education; and
  • Social and affordable housing

We are actively seeking larger scale impact investment opportunities with the following characteristics:

  1. Sectors where government provides funding and bi-partisan support.
  2. Opportunity to run the operations better by applying business/commercial disciplines, allowing the operation to take on debt for social purpose. 
  3. Scope to approach the government to further support the business, thereby underpinning/enhancing risk/return metrics (e.g. through income tax / payroll tax exemptions), with consideration of how long these concessions will be secure.
  4. Property backed structures to provide security to investors, and allow deployment of greater volumes of funds.
 
Case Study
Company Carnegie Catalyst Health REIT
Date of Investment October 2017
Investment Status Current
Deal Summary Carnegie Catalyst provides the opportunity to implement a new funding structure for aged care to accelerate the growth of facilities run by proven ethically aligned operators. The structure allows both parties to focus on their strengths - operators delivering high quality resident care and the Carnegie Catalyst Health REIT providing the operator a cost effective and capital light growth solution. This model improves the operator’s cashflow, allowing not for profit operators to use the equity released from the structure to be directed to other mission related objectives. $200m of funding has been committed by an institutional investor, with the seed transaction involving $31m funding to PresCare for the development of a 140 bed residential aged care facility close to Townsville hospital. Construction of this development commenced in October 2017, and a second $30m transaction for development of 96 bed facility in central Brisbane is committed.
Carnegie
Value Add
Partnering with the Catalyst management team, Carnegie assisted with the fundraising process and due diligence, in addition to sourcing and securing the institutional capital required for both the seed development to proceed and a commitment to fund the broader roll out of aged care developments

Portfolio companies