NPC supported Cheyne Capital to develop a fund through which it could lend money to social sector organisations.
Cheyne Capital Management (UK) LLP, a leading European alternative investment manager, was new to social investment (also known as impact investment) when it approached NPC for support with its Social Property Impact Fund. The Fund lends money to social sector organisations that deliver services such as affordable housing and supported living. Cheyne sought NPC’s expertise on social investing and measuring social impact.
As Cheyne Social Property Partner, Shamez Alibhai reflects: ‘We wanted an organisation with a track record and with credibility in the sector. In NPC we found a team of pragmatic idealists that would be able to recognise—and help us to manage—the relationship between social and financial returns. NPC’s independence and the fact that it doesn’t have a stake in the financial returns achieved through our investments was also important to us.’
To help Cheyne navigate this new area, NPC provided guidance on carrying out due diligence on potential social investments. This included designing a framework that could be used when investigating an organisation’s mission, strategy, governance and its activities to address the needs of beneficiaries. NPC also advised Cheyne on how to assess the social impact of its potential investments. Since this initial project, NPC has continued to support Cheyne on specific deals and through ongoing involvement with a committee set up to oversee investment decisions.
Cheyne’s Social Property Impact Fund is now up and running and fully equipped to base its investment decisions on a sound understanding of potential social impact.