Australian institutional investment community joins forces to invest in US$280M Community Capital Credit Fund

07 Dec Australian institutional investment community joins forces to invest in US$280M Community Capital Credit Fund

7 December 2022

• To manage the portfolio, Barrenjoey and Mr Laurence Marshbaum OAM have founded Community Capital, a new social purpose portfolio management firm
• Leading Australian superannuation funds, including cornerstone investor Australian Retirement Trust, and philanthropic foundations have joined forces to invest in a new private credit fund, the Community Capital Credit Fund
• The management fees of the fund (net of operating costs) will be donated to early-stage social purpose organisations

(Sydney, Australia): Launched today in Sydney, Community Capital Credit Fund (CCCF) provides investors with exposure to a diversified portfolio of top tier global private credit funds targeting strong risk adjusted returns while facilitating support for social purpose organisations.

The fund has received a cornerstone investment from Australian Retirement Trust and foundation investments from some of Australia’s other leading superannuation funds and philanthropic foundations including Minderoo Foundation, MLC Asset Management (a part of Insignia Financial), and Legalsuper.

Barrenjoey is manager of the fund and Community Capital is the portfolio manager.

Community Capital is a social purpose portfolio management firm established with experienced portfolio manager, Laurence Marshbaum OAM. Mr Marshbaum will become the Executive Portfolio Manager of Community Capital, who in addition to his prior experience as a Senior Portfolio Manager at Australian Retirement Trust, is also the founder of philanthropic movement 10×10.

Community Capital Credit Fund will invest in a series of top tier global credit funds to provide diversified global private debt exposure. These flagship funds are being provided by leading firms such as Partners Group, Varde Partners, Hayfin, PAG, and Bain Capital Credit.

“The firms we have selected are all market leading global private credit funds with strong track records in private credit, are signatories to the UN PRI and have made a commitment to creating a positive social impact in Australia,” said Co-Founder and Executive Portfolio Manager of Community Capital, Laurence Marshbaum.

“The generous support of these firms has made this initiative possible.

“We expect the fund to grow beyond US$280M, enabling expected donations of between A$10M to A$20m to social purpose organisations over the life of the fund[1].”

Barrenjoey CEO Brian Benari said that Community Capital’s unique structure will close a gap in the philanthropic ecosystem.

“By providing access to early-stage funding for social purpose organisations, Community Capital will help them scale to create more impact in their communities,” said Mr Benari.

“This support will put them on a pathway to sustainability once they have demonstrated the impact of their model.”

Cornerstone investor Australian Retirement Trust said that its investment in the Community Capital Credit Fund would benefit its more than two million members, while also providing tangible support to a range of social impact organisations.

“Australian Retirement Trust is extremely proud to be involved in such an important investment which will help drive positive social impact across Australia,” said Australian Retirement Trust’s Chief Investment Officer Ian Patrick.

“As one of Australia’s largest superannuation funds, we’re committed to helping solve problems for our community and society, while not compromising on our fiduciary duty to our members, and this investment is an innovative example of how we can do both.”

With the support of 10×10 and an independent selection committee populated by some of Australia’s leading grant-makers, Community Capital will be making multi-year fund grants to 10-15 social purpose organisations operating across Australia over the life of the fund.

10×10 has a track record of distributing AU$5M+ of grants to over 300 social purpose organisations globally. The costs associated with the evaluation of the social purpose organisations have been donated by the Next Generation Foundation.

Community Capital’s legacy will aim to create a thriving ecosystem of social entrepreneurs where funding flows to organisations solving some of the most pressing social issues of our time in communities across Australia.

The fund has also been made possible with the support of Evolution Trustees (trustee), iPlatforms (administration platform), Allen Partners (capital advisory), Aksia (research) and Ashurst (legal adviser).

“Barrenjoey is proud to be creating a meaningful social impact through one of our Private Capital funds. These funds act as an extension of our capabilities in private markets, and the Community Capital Credit Fund will help investors seeking to generate strong returns while achieving meaningful social impact,” concluded Mr Benari.

Ends

About Community Capital

Community Capital is a portfolio management firm founded by Barrenjoey Capital Partners and Executive Portfolio Manager Laurence Marshbaum OAM. The firm seeks to generate strong investment returns for investors alongside meaningful community based social impact.

About the Community Capital Credit Fund

The Community Capital Credit Fund will provide diversified global private debt exposure through leading Managers such as Partners Group, Varde Partners, Hayfin, PAG and Bain Capital Credit. In order to effect the social impact of the fund, these Managers have contributed capacity in their funds on a pro bono basis.  The Management fees of CCCF (net of operating costs) payable by investors in the fund will then be donated by Community Capital to social purpose organisations providing them with a sustainable source of funding over the life of the fund.

The fund has been established with support and a cornerstone investment from Australian Retirement Trust, along with foundation investments by Minderoo Foundation, MLC Asset Management (a part of Insignia Financial), Legalsuper and other foundations.

Evolution (trustee), Iplatforms (administration platform), Allen Partners (capital advisory), Aksia (research) and Ashurst (legal adviser), have all offered low or pro bono support to establish the fund.

About Barrenjoey Capital Partners

Barrenjoey Capital Partners is a proudly Australian financial services firm. We’re uniquely majority staff owned and locally managed with global reach through our strategic partnership with Barclays. Entrepreneurial and partnership focused, we aim to deliver great ideas and opportunities to help clients succeed. We’re also passionate about driving positive social outcomes for communities that rely on corporate support.

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[1] Based on AUD:USD exchange rate of $1 USD = $0.70 AUD. Ultimate donations depend on final size of the fund (up to USD 500m) and drawdown profile.