Fondo de Inversión Social (FIS)

The Social Investment Fund (“FIS” for its Spanish acronym) is an innovative financial tool in the Chilean market, which aims at promoting an investment approach involving social/environmental challenges while generating financial profit. This fund belongs to the consulting and private equity firm “Ameris Capital,” although during its development a wide range of private actors have been involved. An independent committee, with representatives from prestigious institutions, has also contributed its professional experience and pledged its support.

FIS aims at reinforcing the social entrepreneurship industry in Chile, increasing accountability in the social sector and building a bridge between the social and the private/financial sector, leaving behind a history of common distrust. The team that has designed and that is currently managing the fund believes the Chilean private sector must take the responsibility for the development of Chile.

That is why FIS’ mission is to support companies and institutions with high social impact looking for funding for scaling up toward operational sustainability. Between 2011 and 2016, the fund has invested in 7 institutions and thereby impacted directly the local base of the pyramid.

Financial description

The Social Investment Fund is a private investment fund of MMUS$ 4,5 and it has invested 94% of its resources in 7 organizations. The term maturity of the fund is 10 years plus two extensions of up to 2 years each. The management fee is annually 2% plus VAT of the total committed capital. There is no carried interest. The Fund invests generally by debt and exceptionally by equity. The Fund’s return will be measured by a “double bottom-line” in order to expand the social impact in the long term, while seeking to obtain a financial return of INFLATION + 2% annual. Once a year the fund distributes at least 30% of the net benefits generated as a dividend.