At Creative Australia, we define impact investment as finance provided with the aim of achieving positive social or environmental impacts alongside financial returns. In other words, the intention is to create a positive change for people and/or the planet as a result of the investment, alongside generating financial gains.
Impact investors proactively look for investment opportunities that will make a positive difference. They are interested in investing in Australia’s cultural and creative industries that can demonstrate the social and environmental benefit of their work.
It’s important to be clear that impact investment is not a grant or a donation. The investor provides the money to help the organisation reach its business and impact goals with the expectation that those funds will be repaid alongside positive impact being generated. Many organisations that raise impact investment also receive grant funding, where there is no such expectation of a financial return.
Creative Australia’s pilot impact investment fund
We are working towards the goal of creating of a pilot impact investment fund for the Australian creative industries. To do so, we are working with philanthropic and investment partners across five key areas:
- Capability building – build and refine capabilities in financial management, governance and impact measurement and reporting.
- New investment culture – understand the benefits of financing alternatives, other than grants and earned income, and engage with the concepts of debt and equity finance as viable options.
- Definition of roles: identifying the role of Government, philanthropy, investors and intermediaries; specifically the role of Creative Australia as a facilitator, catalytic funder and capability-building engine.
- Articulation and mediation of risk – identify the risks and get support to lower the risk of repayable finance and explore available options.
- Fund modelling: the need to learn from our international peers in the development of an Australian impact investment fund for the creative industries.
Are you a philanthropist or investor interested in impact investment in the creative industries?
Find out more about investing in Australian arts and culture and our pilot impact investment fund for the Australian cultural industries.
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Sydney Modern Tank in the Art Gallery of New South Wales. Credit: Brett Boardman.
Creative Returns: Getting started with impact debt finance
This guide to working with debt finance for the Australian creative industries provides essential information on the nature of impact investment for the creative industries.
Co-investment opportunities
Private investments – also known as co-investments – include philanthropic gifts from individuals, families, trusts, foundations and corporations who are driven by impact.
