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Melbourne boutique raising $70m for new fund

An impact investing boutique owned by a family office and led by a former JBWere executive is raising $70 million for a new fund.

Impact Investment Group's latest fund, the Impact Alternatives Fund, is targeting 6% to 10% per year in returns (before tax but after fees), of which 3% to 5% will be income distributed quarterly.

The fund has a few investments in the pipeline, with first deals expected to close by the end of the year.

For assets for the fund, it will look across renewable energy infrastructure (like large scale solar farms), impact private equity, venture capital and debt for impact-focussed startups, social impact bonds, environmental assets and regenerative farming.

The first close is set at $70 million and the fund is for wholesale investors only.

"We want to show that finance can be a force for good and we work in the context of broader visions. We see a future where energy is 100% renewable, affordable and universally accessible," IIG chief executive Daniel Madhavan said.

"Vibrant businesses can grow while respecting the earth and contributing to our society. Our community of investors has already funded solar farms, green buildings, and the startup years of mission-driven businesses. We're excited to expand our investment thesis with the launch of this new fund."

Five-year-old IIG is owned by Small Giants, the family office of Danny Almagor and Berry Liberman. Their other investments include Future Super and the magazine Dumbo Feather.

It currently has $650 million in assets under management and 500 investors, with past institutional client wins including a $20 million allocation from WA Super (currently in the process of merging with Aware Super) in October last year.

Assets it has invested in previously include a partnership with Lendlease to develop, lease and manage an office tower in Brisbane's Showgrounds area, and a joint venture with Frasers Property and Sekisui House for a $190 million stake in Sydney's Central Park precinct.

The boutique employs about 30 staff across Melbourne and Sydney.

Madhavan is also the co-fund manager of the new fund, and joined as the inaugural chief executive in January 2018 after co-founder Chris Lock departed the business in September 2017.

He spent over 12 years at JBWere and Goldman Sachs JBWere, including as an acting chief executive and the operating officer and head of advice for New South Wales.

Another impact investing house, also staffed with former Goldman Sachs and JBWere employees, Conscious Investments Management recently partnered with a consortium including the Ramsay Foundation to invest $48 million into 60 disability accommodation apartments.

Read more: JBWereDaniel MadhavanBerry Liberman
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