The CFF-SE focuses on building the strength of social enterprises in the community through improved financial resilience, extending delivery of their products and services and improving performance. Further, as these social enterprises mature the Fund will enable them to invest in their asset base, building their financial strength long term. The result is a unique blended value investment opportunity.

Social impact outcomes

The aim is to offer a range of social impact outcomes in urban and regional areas through the employment creation activities of social enterprises.  As well as employment outcomes, the Fund also offers the opportunity to contribute to outcomes that respond to social, cultural and environmental issues.

The Fund is designed for investors who seek a blended value of social and financial returns on investment.

Capital warranty

The Fund benefits from a $4.3 million capital warranty which provides assurance to Investors in relation to income distributions and the return of investment capital. The warranty is a result of Foresters successful tender with the Social Enterprise Development Investment Fund (SEDIF) promoted by the Department of Education Employment and Workplace Relations (DEEWR).

Community finance options

The Fund offers two forms of community finance to approved applicants:

1. First mortgage loans to assist in securing real estate critical to business success and/or for structured lending assisting in the strategic growth of the social enterprise.
2. Enterprise lending designed to promote the growth and development of social enterprises.

Loan finance approval process

Loan finance approval is a three part process. Firstly, applicants must successfully pass Forester’s detailed investment ready appraisal process. Secondly, the applicant is evaluated against our ethical investment policy (see below). Thirdly, our investment committee supervises the detailed credit assessment of the applicant and the security offered against our lending policy. If approved, the Fund settles the loan and manages the loan over its term.

Ethical investment policy

Investments of the Fund are governed by our ethical investment policy which takes into account the following underlying values. We enact these values by finding and creating opportunities for ethical investments which focus on building sustainable, just, strong and resilient communities and the local businesses and organisations that support them.

Click here for a summary of the fund