Capitalism 2.0: former bankers to target $80 to $100M to invest in aged care and affordable housing

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Michael Traill, a co-founder of Macquarie’s private equity business, and former National Australia Bank CEO Andrew Thorburn are set to launch a first close of social impacting investment firm For Purpose Investment Partners’ new $250 million fund this month, targeting $80 to $100 million with a second close to follow in mid-2022.

As we reported here, the group announced plans in May this year to raise a $250 million strategic investment vehicle to lift standards in the aged care, disability and social housing sectors.

Michael, who was also founding CEO of Social Ventures Australia (SVA) and chairs the Federal Government’s social impact investing taskforce, and fellow Executive Director, Andrew say there is untapped capital for investing for social purpose – provided the scale and executive talent is available.

“We have confidence that market will accelerate and take off,” said Michael.

“We call it capitalism 2.0, which is being more explicit around both the financial and social purpose disciplines. You can apply the logic and thinking, and if you can access the talent at board and management level, you can do that in other areas.”

Established in 2018 with the backing of $900 million alternative asset manager M.H. Carnegie & Co., of which Michael is a director, the group is focused on five areas where it sees a significant social need and where capital investment can benefit:

  • Skills education
  • Aged care
  • Mental health
  • Disability
  • Social affordable housing

“We think between 40 and 60%  will be real, property-backed assets, and the other 40 to 60%, depending on which way you look at it, will perhaps be more operating type businesses,” said Andrew.

Looking forward to future investments, social and affordable housing – including for women aged over 55 – is a focus.

“You really do need to identify those segments which are subject to patterns of exclusion and disadvantage, and find smart ways to provide integrated housing solutions,” said Michael. “Women above 55 is a particular area of challenge and need.”

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