Impact Investing. Seeking Profit with Purpose July 2017 *Photo courtesy of Meghan Louise, Another Walk in the Park

What is Impact Investing? OECD definition: The provision of finance to organizations addressing social needs with the explicit expectation of a measurable social, as well as financial return.

What Impact Investing does … Conventional investing … Impact investing… Investors Entrepreneurs Investors Entrepreneurs Social Enterprises (clockwise from top left): Northumberland Lamb Marking Co-op, Pan Cape Breton Food Hub Co-op; Wagmatcook First Nation Learning Centre Dundee Good to Go Bus connects investors with entrepreneurs to drive business & technical innovation. connects investors with entrepreneurs to drive social innovation.

What Impact Investing achieves … Sustainable energy Accelerated innovation & scale when tackling complex social & economic issues, including …. Affordable housing Accessible healthcare Social enterprises (clockwise, from top centre): Antigonish Community Energy (ACE) Co-op; Greenstem Housing Co-op, Halifax; Victoria Co-operative Fisheries Co-op; Collaborative Emergency Centre of Twin Oaks Memorial Hospital, Musquodoboit Harbour; Inverness Cottage Workshop. Rural exodus Social isolation

The Need is urgent … The Ivany Report (2014) documents how: Our youth are leaving rural communities Our senior expertise is retiring Our retirees require extended health care Our tax base is shrinking Our birthrate is shrinking Our immigration rate is shrinking New approaches are required

This trajectory is unsustainable. Government, private citizens and enterprises must partner to unlock the province’s immense potential. Impact Investing is one effective strategy of public-private partnership.

The Challenge of Impact Investing … It is high risk, both inherent and perceived. Desire to invest Decision to invest Inherent Risk Perceived Risk Risk creates a chasm between investors’ desire to blend social good with profit, and their actual decision to do so.

Community Impact Fund An initiative of the NS Co-operative Council & the Social Enterprise Network of Nova Scotia, supported by New Dawn Enterprises, Le Chantier (Quebec), Vancity Resilient Fund and 12 other partners Will leverage financial, human & civic resources to enable social enterprises & mission based businesses, to grow and flourish in Nova Scotia, and to enable traditionally underserved people to participate more fully in the economy.

Community Impact Fund … Will invest in mission based business that demonstrate positive impacts on Nova Scotia’s most pressing issues as well as an acceptable financial return. Homelessness Business Succession Energy Retrofitting Homecare Youth at Risk Childcare Exclusion Skills Shortage Healthcare Municipal Refuse Local Agriculture

Community Impact Fund A highly flexible fund, unlike any other on the existing financial continuum … Investing in a full range of business structures, including social enterprises, not for profits, co-operatives and mission based businesses Offering, in addition to debt, equity, quasi-equity, convertible debt, subordinated debt, & royalty arrangements – separately & in combination

Small Business Lending Program – delivered exclusively through NS credit unions More than $7 million disbursed to co-operatives and social enterprises to date No limit to financing available – lets get more $$ out the door. Discussion