Social Impact Bond for Employment of Refugees and Immigrants jussi.nykanen@epiqus.com
www.epiqus.com IMPACT INVESTING COMBINES FINANCIAL RETURN AND IMPACT Previous Dilemma Impact Investing SIB-funds Return Private Private philanthropy investing Public sector Public budgetary social goals targets Risk Two occasionally conflicting Introduces impact to the classic The same tools can be used to functions under the same roof “risk/return” framework make impact and financial return interchangeable Applies to foundations, family Removes artificial barrier between offices, public sector, etc. mission and investing activities Finances results-based procurement It is essential that 1) the investment brings social benefit 2) impact targets are set and the results are measured 3) the investment targets in reasonable return Contact Us: Kalevankatu 16 B1, 00100 Helsinki 2 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
www.epiqus.com THE REASONING BEHIND IMPACT INVESTING 1. New funding and operating models are Examples of the new challenges: case Finland necessary for balancing the public Challenge Cost per year finances. Child into custody EUR 130 000/person 2. Growing social needs are extensive and /municipality expensive. There in many cases is not Socially exluded young EUR 20 000 enough funding for prevention, which would often bring savings in the long Aged person requiring EUR 40 000 round-the-clock care term. Problems relating to EUR 1 billion / society 3. Systematic monitoring of performance alcohol will help steer scarce resources towards Immobility of people EUR 1 - 2 billion/ society efficient solutions. Sick leaves EUR 3 - 4 billion / society 4. SIBs are effectively public-private Smoking EUR 1.5 billion / society partnerships. All parties would benefit from the collaboration among the Type 2 diabetes EUR 1 billion / society public, private and third sectors. Loneliness, refugees etc. … Source: The Finnish Innovation Fund Sitra Contact Us: Kalevankatu 16 B1, 00100 Helsinki 3 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
THE SIB CONCEPT www.epiqus.com Contact Us: Kalevankatu 16 B1, 00100 Helsinki 4 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
www.epiqus.com KOTO-SIB MODEL € 1 500 fixed fee for each completed integration - training + 50% of tax collections and employment benefit savings versus control group Investors Increased tax collections and Investment of reduced €14m with 8% employment target IRR benefits over a three-year period Integration training and employment of 3 700 immigrants Contact Us: Kalevankatu 16 B1, 00100 Helsinki 5 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
www.epiqus.com KOTO-SIB ECOSYSTEM Contact Us: Kalevankatu 16 B1, 00100 Helsinki 6 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
www.epiqus.com KOTO-SIB IMPACT TARGETS 65% 2.2x 71% Reduction Increase Reduction Integration training Employment Commissioner cost Contact Us: Kalevankatu 16 B1, 00100 Helsinki 7 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
www.epiqus.com FIRST IN THE NORDICS: Epiqus is: “We manage capital to create measurable social and Dedicated in promoting SIBs and environmental impact alongside financial return” Results-based Procurement markets The first FSA regulated impact Give a family a fish Teach a family to Organise a investment fund manager in the fish community-based Nordics (implemented the first SIBs) fishing collective A certified social enterprise: Epiqus dedicates 50% of its profits for social and environmental mission goals A registered EuSEF- (European Social = Philanthropy = Sustainability = Impact Entrepreneurship Fund) manager (funds managed by Epiqus are in accordance with EuSEF 346/2013) Member of the European Venture Philanthropy Association and the Global Impact Investing Network Contact Us: Kalevankatu 16 B1, 00100 Helsinki 8 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
www.epiqus.com www.epiqus.com Epiqus – On A Mission Contact Us: Kalevankatu 16 B1, 00100 Helsinki 9 of 9 Jussi.nykanen@epiqus.com +358 408 408 001
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