Investments in social impact

Why? 

In Denmark, we are proficient at supporting those who need a helping hand. But extra efforts are needed across sectors to address the complex problems of our society:

• Less children and young people are thriving
• More people are outside the labour market for a longer period of time
• More people become homeless 

Therefore, Den Sociale Kapitalfond has developed social impact investments, which are a new method for spreading the efforts that work.

What? 

An investment in social impact is a partnership between a municipality, a supplier of a welfare solution and an investor, who agreed on solving a societal challenge. That could be:

• Education and employment of marginalized citizens
• Reduction of absence due to sickness in the public sector
• Treatment of battered families

How? 

Investor finance the suppliers' effort. The better social outcomes are achieved, the more money the municipality saves. The savings form the basis for the repayment to the investor and thus, the quality of the effort, social impact and the municipality's price are closely linked.

Den Sociale Kapitalfond Effekt supports the entire process and can contribute with:

• Qualification of suppliers and efforts
• Concept development of projects that are attractive to all parties
• Structuring performance contracts and payment models
• Financing of projects as well as follow-up and evaluation