The Social Venture Australia (SVA) Diversified Impact Fund will invest in education, employment, housing, Indigenous Australians, disability and health.
The fund is looking to raise between $10 million and $15 million and will provide 20 per cent downside protection thanks to the backing of philanthropists including CHAMP Private Equity co-founder Joseph Skrzynski, Geoff Wilson and the Bob Bryan Foundation.
Carol and Alan Schwartz, via the Trawalla Foundation, have also made a cornerstone investment in the fund.
Commenting on the new fund, Mr Skrzynski said impact investing provides opportunities that are "not available in mainstream investing".
"The fund is also ground-breaking in its approach to protecting investors from downside risk, which I hope will attract more people to investing for impact. I am excited to be a part of the next step in the development of the Australian impact investing market," Mr Skrzynski said.
SVA chief executive Rob Koczkar said, "It is exciting to be able to offer investors a carefully curated portfolio of opportunities across the landscape of social impact investing. These projects will make a meaningful impact to people living in Australia.
"SVA has a track record of pioneering success in the market, having launched Australia’s first social impact bond in 2013, and this latest development builds on that expertise and spirit of innovation.
"The ability to provide a fund with downside protection will not only deliver meaningful social impact for people living in disadvantage in Australia, but also provide compelling returns, is incredibly exciting. We believe that this new structure will make impact investing even more attractive, and we anticipate that this will lead to a new wave of investors in the sector."
