Social impact bonds: engaging with potential investors

Social Ventures Australia (SVA) has published a comprehensive guide to help for-purpose organisations understand how to attract and engage with potential investors for Social Impact Bonds (SIBs). Commissioned by the Victorian Department of Treasury and Finance, the guide offers practical advice across the entire SIB development lifecycle - from identifying suitable investors and assessing program readiness, through to preparing for a capital raise and managing ongoing investor relationships.

SVA highlights that engaging investors for SIBs can be complex and time-intensive, with no one-size-fits-all approach. The guide explores how engagement strategies may vary depending on investor types and at different phases of SIB development. It also outlines key prerequisites for approaching investors, offers questions to help organisations understand investor expectations, and explains the legal and financial steps involved in securing investment.

While tailored to SIBs, many of the insights in the guide are applicable to broader impact investing initiatives. SVA also shares case studies - including the Arc Social Impact Bond - to illustrate how these principles work in practice.