Fondo de Inversión Social (FIS)
Last updated 11 May 2020, by Impactyield.
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.
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.
Key performance indicators
Asset manager: Ameris Capital
Product track record: Fund has 12 years of track record
Target IRR: 6%
Committed Capital: 4,500,000 USD (US Dollar)
Target return category: Below risk-adjusted market-rate of return
Fund domicile: Chile
Product status: Open - committed capital
Style/Stage: Growth Stage
Inception year: 2010
Vintage year: 2011
Target close date: 01/06/2020
Product term: 10 years +2x 2 year ext
Assets under management: n.a.
Investment size: Min: 250,000,000; Max: 500,000,000; Avg: 375,000,000
Currency of investments: CLP (Chilean Peso)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 7
Fund investments to date exited or repaid: 1
Management fee: 2%
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Family Office
Periodic measurement of social outcomes is an essential commitment for the FIS as part of its strategy to achieve social outcomes. The measurement is seen as a tool that enables trend recognition, creates goals and assesses whether the institutions are working in the right direction.
Through the Investment Committee and the Administrator, the FIS supports the management and monitors on a regular basis the social and financial outputs of the institutions financed. To accomplish this, the FIS records the initial social as well as financial situation when investing in projects. Thus, generating a baseline of key indicators that can be measured over the course of the investment. The results are reported to investors and contributors through periodic reporting of financial and social outcomes. Thus the Fund is established as a reliable source of information which conveys the corporate business market, encouraging private capital inflows to the sector and promoting projects that demonstrate their success with tangible results.