Active Impact Fund

Offering Description

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Facilitating Meaningful Contributions - Directing Money and Talent to Purpose-Driven Businesses. 

The Active Impact Fund (AIF) supports early stage social ventures with both funding and part-time, interim senior operational support to provide capacity building. Based on this support, AIF expects to see faster growth rates and lower failure rates which all add up to higher total impact and ROI. AIF will leverage the past experience of the fund manager and advisors in three main sectors; technology, SaaS/subscription and services. AIF will invest in approximately 15 companies with 50% of the funds held in reserve for follow-on investment.

Capital raised figures include amounts raised both on and off platform

Investment Highlights

Investment: $5,000,000 (Investment minimum: $100,000)

Use of Proceeds
Active Impact Investments (via Active Impact Fund) seeks to invest in Social Enterprises who meet the B Corp standard or advance one of the UN's 17 Sustainable Development Goals (SDGs). These investments are expected to target growth-oriented businesses, with progressive, forward-looking management teams that aim to develop ethical, social, and environmental excellence in their businesses. 

Investment Structure
The Active Impact Fund offering is structured as a Limited Partnership (GP/LP offering). 

Investment Opportunity
Unless terminated earlier upon certain events specified in the Partnership Agreement, the offering has a term of 10 years from final closing with up to two 1-year extensions with the approval of two-thirds in interest of Limited Partners. The Limited Partners will contribute capital to the Fund in instalments, upon 15 days’ notice, provided that the initial capital contribution shall be made upon 5 days’ notice.

Please note that this is not a complete investment summary. Investors should read all associated documentation including the investor package and associated securities agreements before considering or making any investment.  Please contact us via email at info@svx.ca or fill in the Ask a Question box for more information.

Impact

Investing in Impact

By focusing on social ventures, the AIF will help these companies grow and scale their impact by connecting them with much needed capital and executive level capacity building. Active Impact is committed to becoming another successful brand in the impact investing space in order to inspire an accelerated change to where investors place capital and where top talent apply their skills. We want to make this an easy choice, not a sacrifice.

Impact Metrics

Impact Transparency and Clarity 

Each AIF investee will be rated annually on an impact score card used to ensure the entrepreneur is on track with delivering impact and measuring their success. AIF will leverage a combination of current industry best practices and proprietary measures. Alongside financial performance, investors will see at least the following four impact measures:

  1. Every investment will map to one or more of the UN's 17 SDGs
  2. The primary social or environmental benefit will be calculated for each investment on a unit and aggregate basis
  3. The social consciousness of every investment will be measured using the B Corp impact scorecard for governance and stewardship
  4. The fund will use the GIIRS impact rating method to provide a weighted average of all investments

Traction

Strong Pipeline Partners

The AIF is an early stage fund, with soft commitments from the advisory board and a pipeline of over 130 potential investees. With dozens of pipeline partnerships with accelerators, funds and VCs, AIF has access to high volumes of quality ventures. In addition, Mike's two most recent investments have shown 70% and 90% revenue growth over the past 6 months.

Competitive Advantage

Team is Key to Start-up Success 

AIF has focused on developing capabilities around the following:

Sourcing - With over 130 current potential investees, AIF has a strong pipeline from partnerships with accelerators and other funders that will allow them to select only the top 1% for investment.

Screening - Mike, the fund manager for the AIF was one of the top professional recruiters in Canada, identifying high performers and supporting them through new opportunities and transitions. Mike believes that using the tools he developed as President of Canada's largest recruitment company will help him to identify entrepreneurs with the keys to success. AIF specifically screens for; tenacity, problem solving, grit, self-awareness, accountability, purpose, communication, persuasiveness and responsibility.

Due diligence - The AIF team has managed multiple acquisitions requiring extensive research, reference checks and customer calls. They will streamline their process to perform full due diligence only on those ventures with a high chance for success.

Contracting - AIF will focus on a creative and amicable approach to contracting and negotiation that has been developed over Mike's career of vendor, partner and customer contract management.

Post investment support - A key differentiation for AIF is the ongoing support that will be provided to portfolio companies. The AIF team has an exceptional range of senior executive experience in every core function - sales, marketing, finance, HR, IT, legal, operations. Many of these advisors have committed to invest in the fund as well as offered to give hours of their time to the portfolio companies to maximize the ROI on their investments and give back with purpose.

Risks

All private securities listed through online investment platforms and Exempt Market Dealers (EMDs) like SVX are likely to carry more risk than those available on the public markets. Our goal it to make you aware of those risks before making an investment.  The following risks have been identified for investors:

1       Limited Operating History
While the team at AIF have a strong track record of businses success, this is the first fund launched by Active Impact Investments. Accordingly, an investment in AIF entails a high degree of risk. There can be no assurance that AIF will achieve its investment objectives or that the General Partner will be able to succeed in achieving AIF's investment objectives. There can be no assurance that AIF or the Manager will achieve results comparable to those that the investment professionals have achieved in the past. Given the factors described herein and otherwise existing, there exists a possibility that an investor could suffer a full or substantial loss of its investment in AIF.

2       No Management by Limited Partners
The Limited Partners have no right or power to participate in the management of AIF or to interfere in the management of AIF. The Limited Partners will be relying on the management of the General Partner in identifying and analyzing a potential investment, negotiating and structuring the transaction, and administering and disposing of AIF’s investments. Accordingly, no investor should purchase LP Interests unless it is willing to entrust all aspects of management of AIF to the General Partner. In addition, if for any reason key personnel of the General Partner should cease to be involved in the investment management of AIF, suitable replacements may be difficult to obtain, with the result that the performance of AIF may be adversely affected.

3       Limited Transferability of Interests; Interests Not Liquid
No prospectus has been filed in connection with the offering or the issuance of LP Interests, nor have such LP Interests been registered under the securities regulations of any jurisdiction, and no such filing or registration is contemplated. No public market for the LP Interests is expected to develop. Furthermore, any outside transfer or assignment of such LP Interests will be dependent on the consent of the General Partner as described in the Partnership Agreement. The LP Interests therefore have limited liquidity and involve a high degree of risk. Subscriptions for LP Interests should be considered only by sophisticated investors who are financially able to maintain their investment and pay the taxes with respect thereto, and who can afford to lose all or a substantial part of their investment.

4       Long-Term Investment
Although certain investments by AIF may generate current income (including interest income), the return of capital and the realization of gains, if any, will occur only upon the partial or complete disposition of an investment by AIF. While an investment may be sold or redeemed by AIF at any time, it is not generally expected that this will occur for a number of years after an initial investment has been made. Prior to such time, there will generally be no current return on investments made by AIF.

5     Number of Investments
AIF invests in a limited number of Investments, some of which will involve a high degree of risk, and, as a consequence, the aggregate return of AIF may be adversely affected by the unfavourable performance of any single investment.

6     Availability of Investments
There is no guarantee that suitable investment opportunities for AIF’s capital will be found, that investments on favourable terms can be negotiated or that AIF will be able to realize on the value of its investments. Among other factors, competition for suitable Portfolio Investments from companies, the public equity markets and other investors may reduce the availability of investment opportunities.

7     Financial Information of Portfolio Investments
Financial and other information concerning investments in Portfolio Investments may be available through certain sources. There may be no consistent means, however, of confirming the accuracy of such information. As a result, the financial condition of individual investments in Portfolio Investments, and their respective credit risk, is difficult, if not impossible, to quantify.

8     Liquidity of Investments in Portfolio Investments
AIF will invest in unlisted securities, including investments that involve a high degree of business and financial risk, which can result in substantial losses to AIF. Due to the absence of any trading market for these investments, AIF may take longer to liquidate its positions with regard to these investments than would be the case for publicly-traded securities. 

9     Default by Limited Partners
The Manager expects that the investments will require contributions to meet capital calls over an extended period of time. Failure by a Limited Partner to meet a capital call of AIF could result in the failure of AIF to meet a capital call of an investment, which could have adverse consequences for AIF (including, without limitation, financial penalties and the possibility of forfeiture of AIF’s interest in such investment) and thus for the other Partners. If a Limited Partner defaults on its funding obligation, all other Limited Partners may be required to fund such defaulted amounts pro rata based on their capital commitments, provided, that such amounts will not exceed a Limited Partner’s unfunded capital commitment. If a Limited Partner fails to timely fund a drawdown by AIF and such shortfall is not made up by the other Limited Partners, AIF may fail to meet a capital call.

10     Investment Process and Cash Management Policy
The General Partner conducts and will continue to conduct extensive due diligence with respect to AIF’s Portfolio Investments and, as a result, suitable investment opportunities may not be immediately available. It may take a significant amount of time to fully commit and invest AIF’s capital in Portfolio Investments, which will result in lower returns during the initial years of AIF. AIF cannot predict how long it will take to fully deploy its capital in Portfolio Investments. Timing will depend on, among other things, the availability of suitable investment opportunities. 

11     Difficulty in Valuing the Investment Portfolio of AIF
The General Partner values the investment portfolio of AIF from time to time based upon its best estimate of the value of each of the individual investments of AIF. There is typically no public market for the securities of the Portfolio Investments. Thus, portfolio valuation inherently is highly subjective and imprecise. In establishing the value of AIF’s investment portfolio, the General Partner may also consult with accounting firms, investment banks and other consulting firms when needed, to assist with the valuation of AIF’s investments. The value set by the General Partner may not reflect the price at which AIF could dispose of its interests in a particular private equity fund or co-investment at any given time.

This type of investment has substantial risk.  Investors should make an investment only if you are prepared not to receive any return on your investment and to lose your investment in its entirety.

Management Team

Mike Winterfield

Mike Winterfield

Founder and CEO

Top 40 under 40. 20 years in the tech industry specializing in services companies and SaaS products. 13 years in various executive roles, most recently President of Traction Rec and COO at Traction on Demand. Prior to that President of Randstad Professionals running $300M in revenue. Expertise in enterprise sales, building high performing teams, improving operational efficiency and execution. Board of directors at DSRF. Mentor/EIR at NVBC, Founder Institute and Spring Activator. Queen’s BSC, INSEAD exec MBA, Beedie Directors Education Program (DEP). Avid lover of nature and any form of outdoor activity or experience.

Imran Jiwa

Imran Jiwa

Director of Impact and Finance

Holds a CPA designation, which he obtained with KPMG in the Technology, Media and Telecommunications group.  For six years, he advised clients with revenues ranging from $10 million to $2 billion and financial institutions managing over $20 billion in assets. Working at the nexus of sustainability and business, he advised companies on their ability to respond to climate change, impact and financial reporting, and impact investing strategies. Imran is a sessional instructor teaching Sustainable Finance and Accounting to students at BCIT and an instructor for the CPA Professional Education Program.

Joel Solomon

Joel Solomon

Advisor

Chair of Renewal Funds, Canada's largest mission venture capital firm. With $98m assets under management, Renewal Funds invests in Organics and EnviroTech. Senior Advisor with RSF Social Finance, Founding Member of Social Venture Network, Business for Social Responsibility, the Tides Canada Foundation, and Board Chair of Hollyhock. Co-Author of The Clean Money Revolution, a call to action to move trillions of dollars from damaging to regenerative use.

James Price

James Price

Advisor

Director of Capital Markets at Richardson GMP. CFA charter holder since 2006. Helps clients and advisors structure and execute investment strategies in all markets and asset classes, including equities, fixed income, derivatives, mutual and hedge funds, and private equity and credit. Extensive experience straddling both the “buy” and the “sell” side of the investment industry, analyzing management strategies, diligence on countless investment products and help design total client portfolios to
achieve their goals.

Tom Boddez

Tom Boddez

Partner

Tom has spent the last 25 years in tax law, earning his way to senior partner at Thorsteinssons LLP. He has served as the Managing Partner, and also as a Governor of the Canadian Tax Foundation. Tom is regularly recognized as one of Canada's leaders in the field of tax controversies, working with high profile individuals, families and corporations. Tom will start by serving on our advisory committee while he winds down his practice and then as time permits he will become more actively engaged on the management team of the fund. Tom is humble, values aligned, smart, hard working and has incredible experience with high value and complex transactions that will serve him well in this new capacity. 

$4,300,000.00

Raised Of $5,000,000.00 Goal*

Days Remaining 13
Hours 11
Mins 26
$4,300,000.00
 
Limited Partnerships (LP) Offer. Structure
7% Valuation
7 Years Term
Invest Now

*Capital raised figures include amounts raised both on and off platform. Amounts raised off platform or committed have not been independently verified by SVX.