Understanding Foresters Community Finance

Social Finance Conference

Sydney 8th August 2013

Overview

• Foresters 101

– Vision and Mission

– Company Structure

– Individual Finance

– Organisational Finance

– Investment

• Myth busting

Vision

People and communities helping themselves.

self determination, empowerment, community defined outcomes,

collective impact, place based action,

community development

Mission

Innovative financial solutions with people and communities.

Finance products that reflect an understanding of the market, responsiveness

to market needs and that support social, cultural and environmental change.

Community Development Finance Institution CDFI

Foresters Members Limited Non-profit holding

company.

Social Investment Australia Ltd.

Australian Financial Services License

Foresters Community Finance Ltd. Australian Credit License

Demand Finance for underserved or emerging markets

Supply Capital raised from investors via investment products.

Loan originator and financier

Product designer and fund manager.

Individual Finance

• Australian Credit License (ACL) • Capital provided through NAB • Focus on individuals experiencing financial

exclusion • Triage systems focused on financial solutions,

including capability building. • High touch loan application process focused on

building knowledge about financial position and capacity.

• Loans that address financial exclusion

Demand driven product suite

• Fair Finance Loan

• Disability Equipment Loan;

• Car repair loan;

• Loan for young people entering apprenticeships

• No Interest Loan

• Quickstart

Organisational Finance

• Supporting non-profits and social enterprise to develop and grow through their vision and mission.

• Comprehensive due diligence model focused on building knowledge and capacity.

• Technical support program.

Demand driven products and services

• Property finance

• Business development finance

• Service development finance

• Equipment finance

• Expanded technical support services – legal, financial, property, strategy.

Outcomes

Investment

• Wholly owned subsidiary company, Social Investment Australia Ltd. AFSL for wholesale investment.

• Designs and delivers investment products in the form of managed investment funds matched to the finance needs of our markets.

• Investors include high net worth individuals, institutional investors, foundations, PAFS.

Investment Products

• Community Finance Fund, Social Enterprise – property investments.

• Social Enterprise Finance Fund – business investments for growth of existing enterprises.

• Early Stage Social enterprise Fund – business investment for early stage ideas.

• Community Finance Fund Non-Profit – property investments including social housing.

Action Insights

• Building supply does not mean demand will follow – market building is crucial to success.

• Underinvestment is not a sign of limited opportunity – high quality intermediation is crucial to success.

• Australia is not an island when it comes to this work – defining the role of government policy and funding is critical to the future of this market.

• We understand what we are doing – delivering finance…but do we understand why?