Epiqus Occupational Wellness I

Epiqus Occupational Wellness I is a Social Impact Bond (SIB) that intends to improve occupational wellness and preventive occupational healthcare in Finland measured by the reduction of sick leave days for targeted municipal employees.

Epiqus has identified rapidly deteriorating support ratio as a major social challenge in Finland. Public sector productivity improvements and reductions in disability pensions are key drivers for support ratio improvements, and both correlate closely with occupational wellness as measured by sick leave days – hence, the impact target of this first SIB in Finland.

Epiqus Occupational Wellness I is a EUR 5-10m, three-year Social Impact Bond with 10% base-case IRR, implemented as a VC/PE limited partnership. Proceeds are used to buy occupational wellness and preventive occupational healthcare services from selected companies for the benefit of municipal public sector clients. Clients then pay for a reduction in the number of annual sick leave days of their staff compared to pre-intervention levels, and this income is used to repay investors.

Financial description

-Target Size: EUR 5-10 million (corresponding to apprx. 10,000-20,000 employees)
-Target Return: 10% net IRR (corresponding to a reduction of apprx. 2.1 sick leave days per employee per annum)
-Minimum Ticket: EUR 250k
-Anchor Status: EUR 1m (entitles to a seat on the Advisory Board)
-Term: 3 years from final closing + right of one six-month extension
-Hurdle Rate: 1% p.a.
-Management Fee: EUR 170k p.a.
-Carried Interest: 30%, subject to hurdle rate, and after service providers’ 20% margin, no catch up. Half of carry to service providers, half to the GP