Social Enterprise Investment Managed Accounts (SEIMA)

ongoing

The objective of the action is to launch a new, innovative co-investment structure with managed accounts to finance a pan-European pipeline of early-stage social enterprises. The Social Enterprise Investment Managed Accounts (SEIMA) aim to address a systematic gap in social enterprise finance in Europe and to mobilize more investment capital for social enterprises. FASE has partnered with Innpact to develop, set-up and test a small-scale investment approach for high-net worth individuals (HNWIs), family offices, foundations, and corporates. These investor groups are often not able to invest directly in social enterprises, as they don’t have the competences and capacities. Additionally, direct investments are often not ideal for them, and they prefer to invest via investment structures. However, traditional investment funds are usually not well suited for small and agile investment strategies. The SEIMA are based on a Luxembourg securitization platform and allow investors to invest in a customized portfolio of social enterprises. The SEIMA provide a cost-efficient alternative to cost heavier fund structures for the deployment of smaller impact investment strategies. Thereby, the SEIMA will significantly reduce the entry barrier for new investors and help to activate investor groups for social enterprise finance that have not been active before (“impact investing as a service”). The action is specifically targeted at catalysing smaller risk-capital investments of below EUR 500k that otherwise would not be possible. The action will enable developing the SEIMA concept, finding appropriate investors for its first pilot, setting-up the investment structure, sourcing appropriate social enterprise and starting its investment activities. A successful launch of the SEIMA will strengthen the supply side of the social finance market by activating new investor groups. The SEIMA could serve as blueprint for a cost-efficient implementation of smaller impact investment strategies.