LGT Venture Philanthropy, the impact investing arm of the Liechtenstein’s ruling royal family, and [tag|Berenberg|]Berenberg[/tag], the European bank, have announced the first closing of its fund, Impact Ventures UK, raising £20.8 million ($34 million).
LGT Venture Philanthropy, the impact investing arm of the
ruling royal family, and Berenberg, the European bank,
have announced the first closing of its fund, Impact Ventures UK, raising £20.8
million ($34 million).
IVUK’s investors include the London Borough of Waltham
Forest Pension Fund, Deutsche Bank, Stichting Anton Jurgens Fonds and The
Golden Bottle Trust, in addition to the cornerstone investment of £10 million
from Big Society Capital.
As explained in a recent article at WealthBriefing, impact investing – where
the intention is to
generate positive returns while achieving specific goals such as helping
children’s education or improving the environment – is an increasingly common
term. While still in relative infancy, interest in the area has grown.
According to JP Morgan, in 2013 an estimated $9 billion will be allocated to
impact investments globally – a niche investment area which represents a
predicted market opportunity of up to $650 billion over the next decade.
IVUK concentrates on identifying businesses with specific
and measurable positive social impact and a sustainable financial model. The
proprietary impact assessment will be based on LGT VP’s global impact
investment approach developed since 2007. The fund will target a financial
return and the investments will be a mix of debt, equity and range from £500,000
to £5 million. The structure is a closed-ended SICAV-SIF fund in Luxembourg with
a ten year term with two possible one year extensions.
“It will showcase social innovation and leadership, and will
act as a catalyst to provide growth capital, strategic industry insights,
management support and mentoring for social entrepreneurs. The fund has a broad
mandate and will invest in enterprises with business models that target
specific areas of impact, ranging from education, housing, employment and
skills through to access to finance as well as mental and physical health,” it
LGT Venture Philanthropy works with LGT Group, the private
bank. Berenberg, the bank dating back to 1590, operates in sectors including
private banking, investment banking and asset management.