Community Investment Corporation
Liime Capital - A Community Investment Corporation (CIC)
Lasting impact investment management for everyone … impact investment will help to tackle community issues utilizing local, patient capital while still projecting a sustainable financial return. Our community challenges: Health, education, food & water security, renewable energy, housing, accessible transportation and more ...
Challenges for social entrepreneurs and social ventures:
Lack of patient capital, misaligned funder priorities (risk, reward, return, impact), unstable funding, donor/grant dependency, limited talent pool, limited entrepreneurial experience.
What are we doing about it:
Liime Capital, a new Community Investment Corporation (CIC), is a collaborative, equity based venture between Community Futures Development Corporation of Central Okanagan, Purppl Community Contribution Company, Rhiza Capital Inc. and strategic institutional private capital. The CIC has an impact investment mandate where investments are made in companies and organizations with the intention to generate social and environmental impacts alongside a sustainable financial return.
What is the need and current state of the marketplace:
Social enterprises and impact ventures are systemically undercapitalized preventing much needed affordable housing, local food security, and jobs, especially for those facing barriers. In both emerging and developed markets, we face challenges in health, education, climate, renewable energy, and more. Impact Investing serves as a new investment model that tackles these issues. Our investment fund will facilitate the connection between local investment capital and impact ventures. Place-based impact investing strengthens local, especially rural economies, with greater resilience, access to capital and an engaged entrepreneurial ecosystem.
Liime Capital priorities are:
- Localized decision making
- Build local capacity to evaluate and manage impact investments
- Community, social, environmental prioritization
- Investors that demand both return and impact
- Create the opportunity for local capital to invest in impact
- Balanced return portfolio
- Interior of BC priority for investments
Liime Capital’s investments will be directed towards local and social ventures in the BC Interior that have a demonstrable intention to generate measurable, beneficial social or environmental impact alongside a financial return.
The portfolio will balance between impact first and finance first where the investment review of these priorities will be given equal weighting in the overall assessment decision criteria. There will be an appropriate balance of early stage to more mature organizations.
Investments vehicles will use a blend of financial instruments ranging from equity to loans. Each deal will dictate what kind of investment vehicle that will be put into place whether it is a straight equity investment, convertible debt, secured debt or unsecured debt transaction. Forecasted cash flow for the next three years assumes 75% of investments will be debt and 25% will be equity investments.
Special consideration will be given to the cash flow of the business, whether it can support debt and when the debt will be paid back. For equity investments, an agreement regarding how and when the investment will be paid back is also required.
Sustainable impact is the investment priority for Liime Capital and we will consider all forms of incorporation models: non-profit, for-profit, co-op, and hybrid models are all welcome.
Timing: Incorporation and fund development is well underway. It is expected that the new investment fund will be fully operational by Fall 2019.