Investment & Technology: Impact investing - how finance found a place within philanthropy.
Can financiers combat social ills and become rich at the same time? Impact investors believe so. As the financial industry rebuilds, and society vents anger at the transformation, in some cases, of bailouts into bonus pools, investors from the commercial and non-profit worlds are committing millions to the latest form of social investing.
Scott Marinchek, a former Wall Street banker who now heads a new Sydney-based funds management business called Aviiid Third Age Living (3AL), believes he can attract institutional capital into profitable investments that provide accommodation and services to the aged. It targets the nexus between the financial and social returns on which impact investing focuses. "It's not simply a property play" but aims to "deliver long-term accommodation and care that delivers a quality lifestyle" to retirees, he says.
Marinchek says the proposition will overcome the assemblage problem that keeps institutions out of the residential property market because the developments to which it holds exposure operate within a "critical mass" of commercial infrastructure, including property management, operational management, care and lifestyle services, which should be profitable enough to sustain long-term returns. For investment capital, it will target super funds, which have the "mission and social mandate to build the nation for its members to retire in".
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