Capitalism 2.0: Former bankers to target $ 80-100 million to invest in senior care and affordable housing

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

As we reported here, the group announced its intention in May of this year to raise a strategic investment vehicle of $ 250 million to raise standards in the elderly care, disabled and healthcare sectors. social housing.

Michael, who was also the founding CEO of Social Ventures Australia (SVA) and chairs the Federal Government’s Task Force on Social Impact Investing, and his fellow executive director, Andrew, say there is untapped capital for investing for social purposes – provided scale and executive talent are available.

“We are convinced that the market will accelerate and take off”, said Michel.

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

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

• Skills education
• Elderly care
• Mental Health
• Disability
• Affordable social housing

“We think between 40% and 60% will be real assets backed by real estate, and the remaining 40% to 60%, depending on how you think about it, may be more of an operational type of business,” he said. he added. said André.

Pending future investments, social and affordable housing – including for women over 55 – is a priority.

“You really need to identify the segments that are prone to patterns of exclusion and disadvantage, and find smart ways to deliver integrated housing solutions,” said Michel. “Women over 55 are a particular area of ​​challenge and need.”

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