Brussels, 17th of August 2022 - A group of Belgian and Dutch families participate in a new so-called impact investment fund to fight social inequality close to home. The SI3 Fund, in which three Dutch foundations and the Belgian public investment companies PMV and FPIM participate, invests in companies that with their services or products directly contribute to a society in which everyone benefits from equal opportunities. For the fund, social return is equally important as financial return.
Piet Colruyt (Colruyt supermarket chain), Astrid Leyssens and Guus van Puijenbroek (shareholders in Mediahuis and investors in sustainability projects as a couple), Kalo Bagijn (BinckBank, Brand New Day) and Myleen Verstraete (impact investor and board member of PYM), are some of the investors in the fund. In the first round of fundraising, EUR 10.5 million is raised. The founders expect the fund to grow to over EUR 20 million in the short term, as more investors are showing interest and will join. The SI3 Fund is managed by fund managers Jamy Goewie and Pieter Oostlander of the Shaping Impact Group, which also manages two other impact investment funds. "We see that an accumulation of different crises is increasing inequality at a frightening speed," said co-investor Astrid Leyssens. "The SI3 Fund is founded on the idea that a large part of the issues around inequality can be solved through social entrepreneurship."
Entrepreneurial initiatives
The founders and investors of the fund express concerns about the increasing income inequality, inequality in education and debt issues, says fund manager Goewie: "Government and charities cannot solve all these problems by themselves. Entrepreneurs are also very much needed. Although impact investing has been on the rise in recent years, many of the impact investment funds still too often focus on returns rather than the social impact of investments”.
Tackling social problems through entrepreneurial initiatives mostly requires a long time. Goewie therefore speaks of "patient capital". The companies screened by the SI3 Fund have already been in business for a while and have often received donations or subsidies based on their social mission. "If there is a proven product for which there is also proven demand, we would like to help a company to grow further and to multiply its impact. Social entrepreneurship has professionalised enormously and many of the entrepreneurs we speak to already have a certain track record, but they cannot find suitable capital."
FPIM and PMV also participate in the fund. Through its affiliate “FPIM Relaunch”, the federal government aims to invest in a sustainable revival of the economy that contributes to a more inclusive society. Koen Van Loo, CEO of FPIM, and Céline Vaessen, CEO of FPIM Relaunch, state: "FPIM Relaunch supports companies and funds that among others bring innovation in the areas of inclusion and digital literacy. The SI3 Equal Opportunities Fund is well aligned with our own ambitions to stimulate the flourishing of the Belgian economy while tackling social problems.''
Michel Casselman, PMV's general manager: "We are convinced that inclusive and profitable entrepreneurship creates a catalytic effect for a stronger social fabric, which also benefits our planet and society. Because it is part of the essence of our mission to provide adequate financing for this from a long-term perspective, we are fully convinced to participate in the SI3 fund.’’
Cornerstone investor Piet Colruyt: "For me, impact investing is one of the most important ways to successfully bring about change. The complex problems in society require sustainable, structural solutions and entrepreneurs are generally well positioned to develop a long-term strategy. Having a business that also has to be profitable helps with the long-term focus, and keeping the business healthy is also a prerequisite for ensuring social impact."
Privileged position
Businesses that are supported by the SI3 Fund can count on an investment between EUR 500,000 and EUR 1.5 million. In addition, the fund supports social entrepreneurs with management advice, intensive coaching, practical support and a wide variety of tools. Apart from capital, some of the shareholders also actively contribute through their knowledge and network. The SI3 Fund distinguishes itself from other impact investment funds as it maps out the social effects of its investments. The social return, or the value it provides to society, must be at least three times higher as the initial investment made. The investors participate in the fund because they highly value societal return.
Most investors have participated in the fund with an amount between EUR 250,000 and EUR 750,000. Goewie: "It is great to see that our investors acknowledge that the growing inequality gap in society requires smart and decisive solutions, and that they want to contribute to this. They are aware of their privileged position and think it is important that companies with a high social impact continue to grow. The importance of an inclusive society and wanting to contribute to more equal opportunities is what binds our investors."