Investing for impact

Historically, Australian trusts and foundations have approached granting and investing in separate ways, basing granting decisions on their vision, mission and values, while focusing investing activities solely on generating income. At the Reichstein Foundation, we believe this approach needs to change.

In September, we made our first impact investment in First Australians Capital’s Catalytic Impact Fund, heralding our official entry into the impact investment market.

“Coming 12 months after the Reichstein Foundation committed to exploring new ways to deploy our endowment in line with our mission and values, this investment is a meaningful step towards fulfilling the aspiration in our current strategic plan,” says Reichstein Foundation CEO Rachel Ball.

“We’re delighted to join the growing number of trusts and foundations deploying their investments in pursuit of their missions. While it’s a modest first investment, it will help us develop and refine our approach to impact investing.”

First Australians Capital (FAC) is a majority Indigenous owned and led fund manager that supports First Australians to become active participants in the economy, enabling generational change and helping to close systemic gaps. FAC provides a range of resources to Indigenous businesses, including professional business support and services, networking and access to financial capital.

Its Catalytic Impact Fund is a diversified fund that contributes to the growth and sustainability of the Indigenous economy by supporting early-stage Indigenous small and medium enterprises to become sustainable and impactful; and catalysing and developing a pipeline of talented Indigenous entrepreneurs and effective business leaders.

“Much of the wealth that exists in Australia — including within the philanthropic sector — was generated on stolen land and built over decades when First Nations peoples were excluded from Australia’s formal economy,” says Rachel. “Major shifts in policy and practice within government, business and the community sector are required to address this legacy of injustice.

“Given the Reichstein Foundation’s long history of supporting trailblazing First Nations-led initiatives, the Catalytic Impact Fund is a fitting way to acknowledge this legacy while also exploring the practice and potential of impact investing.”