Sympathetic Values forseo BASE The Quiron Project
     
 
 Social Investment Review 
 
One of the biggest challenges to renewable energy projects becoming sustainable is securing the right kind of investment.

These projects often require patient capital and realistic rates of return to permit them to provide important elements such as training, and to give local markets in developing countries time to mature and develop. We believe that with projects such as Quiron, or those within the BASE network, providing this capital is the key to sustainability, poverty reduction and creating strong, healthy markets for renewable energy and clean technologies.

The social entrepreneurs who wish to make such projects a reality face a significant challenge to finding such investment. Funds created for technologies and renewable energies, even in developing countries, typically have market rates of return (15% +), meaning that even the best meaning socially responsible fund can be out of reach to a social entrepreneur with a high impact project. We call this kind of investment "social investment".

In order to understand the investment "space" for such social projects in Europe CANOPUS conducted a review of social investors in Europe. For the purpose of the review social investment was described as an investment whose primary aim is the improvement or benefit of society or the environment. Financial return is sought, but not to the detriment of the social and environmental returns.
 
The scope of the review includes:
Emerging sectors of social investment in Europe
Social investment instruments and vehicles sourced - entirely or in part - by private capital
SI instruments that take a private equity approach to investment
SI instruments and strategies that focus on Foreign Direct Social Investment (developing country investment strategy).
   
This review aims to stimulate interest in social investment, make a first attempt at mapping out the social investment market in Europe today.

The SI Review has raised some important questions. Is this niche of investment just another form of venture philanthropy? Is it a niche within the expanding world of Socially Responsible Investment funds, or can it be labelled as social investment, meaning that the financial return does not take priority?

Visit the SIReview Website to find out more and let us know your opinion.
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