Liime Capital Corporation - A New Community Investment Corporation
Lasting impact investment management for everyone. Impact investments that will help to tackle community issues utilizing local, patient capital while still projecting a sustainable financial return.
Our community challenges: Health, education, food & water security, renewable energy, housing, accessible transportation and more ...
Challenges for social entrepreneurs and social ventures: Lack of patient capital, misaligned funder priorities (risk, reward, return, impact), unstable funding, donor/grant dependency, limited talent pool, limited entrepreneurial experience.
What are we doing about it: Liime Capital Corporation, a new Community Investment Corporation (CIC), is a collaborative, equity based venture between Community Futures Development Corporation of Central Okanagan, Purppl Community Contribution Company, Rhiza Capital Inc. and strategic institutional private capital. The CIC has an impact investment mandate where investments are made in companies and organizations with the intention to generate social and environmental impact alongside a sustainable financial return.
What is the need and current state of the marketplace: Social enterprises and impact ventures are systemically undercapitalized preventing much needed affordable housing, local food security, and jobs, especially for those facing barriers. In both emerging and developed markets, we face challenges in health, education, climate, renewable energy, and more. Impact Investing serves as a new investment model that tackles these issues. Our new investment fund will facilitate the connection between local investment capital and impact ventures. Place-based impact investing strengthens local, especially rural economies, with greater resilience, access to capital and an engaged entrepreneurial ecosystem.
The CIC priorities are:
- Localized decision making
- Build local capacity to evaluate and manage impact investments
- Community, social, environmental prioritization
- Seek investors that demand both return and impact
- Create the opportunity for local capital to invest in impact
- Build a balanced return portfolio
- Southern Interior of BC
Investment Balancing: The CIC's investments will be directed towards local and social ventures in the BC Interior that have a demonstrable intention to generate measurable, beneficial social or environmental impact alongside a financial return.
The portfolio will balance between impact and finance where the investment review of these priorities will be given equal weighting in the overall assessment and decision criteria. There will be an appropriate balance of early stage to more mature organizations.
Investments vehicles will use a blend of financial instruments ranging from equity to loans. Each deal will dictate what kind of investment vehicle that will be put into place whether it is a equity investment, convertible debt, secured debt or unsecured debt transaction. Special consideration will be given to the cash flow of the business, whether it can support debt and when the debt will be paid back. For equity investments, a solid understanding and agreement regarding how and when the investment will provide a return on capital is mandatory. Sustainable impact is the investment priority for the CIC and we will consider all forms of incorporation models to invest in and finance including non-profit, for-profit, co-op, and hybrid models.
Timing: Liime Capital Corporation was incorporated in June 2019 and it is expected that the new investment fund will be active by Fall 2019.