Deutsche Bank Impact Investment Fund I (DBIIFI) has just closed two new investments into Impact Ventures UK and the Social Venture Fund II. These investments see the Bank’s portfolio increase to five investments and c50% of the total £10m available as committed. DBIIFI was launched at the end of 2011 and committed to supporting the growth of the Social Finance market through a £10m fund to be invested over 3 years. Other investments include Bridges Ventures, Big Issue Invest and the Social Impact Accelerator.
Deutsche Bank’s UK CEO, Colin Grassie said “both investments are excellent examples of how this groundbreaking fund, which accepts a reduced return on investment in order to support social enterprise, can make a real impact in society.”
Impact Ventures UK
The first close of LGT Venture Philanthropy and private bank Berenberg’s social impact fund “Impact Ventures UK” (IVUK) has been announced after raising £20.8m (€24.8m) from investors including DBIIFI. Other investors include London Borough of Waltham Forest Pension Fund, Stichting Anton Jurgens Fonds and The Golden Bottle Trust, as well as the cornerstone investment of £10m from Big Society Capital.
IVUK will support enterprises that create strong positive social impact for disadvantaged people and communities in the UK, as well as generating a financial return. The fund has a broad mandate and will invest in companies 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.
Social Venture Fund II
The Social Venture Fund (SVF) has recently announced the successful 16.4 million euro first closing of Social Venture Fund II (SVFII) which includes investment from DBIIFI. SVF invests risk capital in social enterprises focusing on alleviation of human suffering, work and education and build-up of lasting means of subsistence. Their funds also have a Europe-wide investment remit.
The second fund will build on the success of their first fund which saw investments into organisations such as Auticon (software testing by people with autism), Germany Rounds Up (micro donations) and VerbaVoice (live transcriptions for the hearing impaired) amongst others.
Dr. Thomas Jetter, member of the SVF’s investment committee: “In the past three years we have shown that social entrepreneurs can effectuate measurable and relevant social changes. They strategically implement their social, operative and financial corporate objectives. The growth capital invested in them works economically and ensures the long-term sustainable establishment of these social enterprises. We will now systematically pursue this path through the Social Venture Fund II.”
For more information about DBIIFI please click here
Click here to read about Deutsche Bank’s UK CEO, Colin Grassie’s address to G8 social impact investment.
Click here for information about Microfinance and Social Investment at Deutsche Bank