PG Impact Investments, a global impact investment firm, made its first investment in the affordable housing space on behalf of its clients. The deal closed on 5 May 2016.
Access to decent and affordable housing has become a challenge in several countries across the globe, including the world’s leading economies. In the United Kingdom approx. 1.5 million households are on waiting lists for affordable homes with temporary accommodation, friends’ and family’s hospitality or sheltered accommodation being the only alternatives. This supply shortage is the result of rents and prices increasing faster than salaries and significant reduction in government funding for affordable housing. While the most affected have been the most vulnerable (e.g. the elderly, those at homelessness risk and people in need of supported living accommodation) even individuals in full-time employment but with low income are increasingly unable to meet rent payment obligations.
PG Impact Investments will support the creation of thousands of affordable homes in the UK through an investment in Cheyne Social Property Impact Fund (“SoPro”). SoPro was chosen in reason of its innovative strategy which allows it to be the first fund completely dedicated to affordable housing targeting commercial returns. The Fund will be a platform for affordable housing investing, providing regular income cash flows, inflation hedge and a variety of exit options. SoPro’s social impact mission has
Also been underpinned by the support of long-established and recognized social sector organizations like Big Society Capital and New Philanthropy Capital.
With its deliberate support for a first time fund PG Impact Investments intends to foster the development of innovative ways to finance affordable housing that can meet institutional investors’ demand.
About PG Impact Investments
PG Impact Investments was founded in 2015 with the vision that private investment, innovation and entrepreneurial talent can provide solutions to the challenges faced by our society, as well as create sustainable growth.
PG Impact Investments is a private sector, mission-driven, global investment firm specializing in investment solutions aimed at delivering financial returns as well as creating a positive social and/or environmental impact. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges.
All profits from the business activities of PG Impact Investments are transferred to PG Impact Investments Foundation. The Foundation supports social initiatives and social businesses ventures that otherwise would not receive funding through commercial investors or investment funds.
Whilst being independent from Partners Group, PG Impact Investments entities are backed by Partners Group and its employees, and benefit from the global infrastructure, investment know-how and specialist resources of this leading global private markets investment manager.