We are steadily building an endowment for our Foundation to provide it with a permanent source of funding into the future. The Trustees decided that a proportion of our assets should be devoted to social investments - in other words, investments that generate a positive social impact as well as a financial return.
In March 2010 the Apax Foundation made its first social investment, through the purchase of a 20% stake in Finance in Motion.
Finance in Motion is an asset management firm exclusively focused on development finance. It offers specialised investment advisory services in the management of investment vehicles that have a positive social impact in developing countries and emerging economies and generate a financial return for investors. It is the sole fund adviser for the European Fund for Southeast Europe (EFSE), which is the world's largest microfinance investment fund and is also the investment adviser of the Green for Growth Fund Southeast Europe, which promotes energy efficiency and renewable energy projects in Southeast Europe including Turkey. Read More.
In July 2010 we made our second social investment, in the East London Bond. The East London Bond uses the mechanism of a charitable bond to deliver positive change for communities in East London, while preserving the capital of investors in the bond.
The East London Bond is offered by Citylife, a national charity that issues Social Investment Bonds as a unique way to raise funds for charities. Of the total invested in the East London Bond, around 80% is to be loaned to social housing providers at commercial interest rates to develop affordable housing in the East London area. The remaining 20% is to be given as a tax exempt grant, divided equally between two charities working in East London - the Bromley by Bow Centre and Community Links. At the end of the 5-year bond holding period, the investors' original capital will be returned in full - leaving behind a legacy of lasting change in East London.