Israeli fund taps super to invest for social housing impact
MELBOURNE: OurCrowd, the $1.5 billion Israeli crowd-funding venture capital firm backed by rich-lister Radek Sali, is in active discussions with superannuation funds about backing its new technology-focused international impact investment fund.
The $50 million fund will provide high-quality tech-focused global impact investment opportunities for families and high net worth individuals under principles aligned to the United Nations’ sustainable development goals.
OurCrowd Australia managing director Dan Bennett said a wider section of the Australian community, including super funds, were now “trying to get their head around this space and get involved”.
“The super funds realise they have a really diverse group of constituents and they want to be representing them well. There is a significant number of strong conversations we are having with them,’’ Mr Bennett said.
“This is trending very significantly towards not just venture capital, but towards social ventures and impact. And if directors of super funds need to start thinking beyond financial returns and other aspects of directing the company, all that will flow into the sector. Some of the smaller boutique super funds are also trying to be almost activist on the social impact space.”
It comes as industry superannuation fund HESTA last week committed $20m to a Melbourne apartment project aiming to help improve housing affordability and sustainability.
Two years ago HESTA made a $6.7m allocation to a social and community housing project in Queensland.
HESTA and fellow industry fund Cbus have also both said superannuation funds can play a role in improving the supply of affordable and social housing.
Another industry fund, First State Super, has partnered with private real estate funds management business Altis to lease 61 apartments in the Sydney suburb of Epping as worker-rental units.
Flight Centre co-founder Geoff Harris recently called on the federal government to take greater responsibility for governance of the nation’s booming social enterprise sector and suggested superannuation funds could be mandated to provide funds for public housing.
Mr Harris’s family office backs several social enterprises including Launch Housing, which provides housing and homeless support in Melbourne, and STREAT, which provides young homeless people with life skills, training and work experience designed to give them a start in the hospitality sector.
Dan Bennett said Australia was a key focal point for the new OurCrowd fund because its purpose resonated well in this market, with investors and companies concerned about the impact they have on people’s lives and the environment.
“Some of the families that have committed to join us on the impact fund journey are already advanced in the impact investment ecosystem in Australia. We look forward to partnering with them in a multi-directional relationship. We want to be the global player here in Australia,’’ he said.
OurCrowd, a global platform that brings crowd-funding to the tech sector, will use some of its existing portfolio companies, with 30 per cent in the impact space across agriculture, tech, medical and meat alternatives.
All companies in the fund will be assessed by OurCrowd’s partner in the fund, an Israeli impact advisory firm group called Social Finance Israel.
The fund’s Israel-based chief executive Richard Norman said during a recent visit to Australia to meet with family offices and super funds that only companies that met a certain threshold would be considered for investment. “Right now the atmosphere globally seems to be ‘let’s help each other’. All the right kind of conversations are happening,’’ he said.
“We are encouraged that the Australian pension system is so advanced on a global basis and actively investing in this industry … Australia is a market where we are excited to see deal flow.”
OurCrowd has $1.5bn under management globally, with more than 20 per cent from Australian investors.
