NAB, CBA and Bank Australia provide $260m joint debt facility
Deal highlights
· $260m facility will support the acquisition of Signature Care
· Signature Care has eight operational residential aged care facilities, and a growth pipeline of six development sites
· The transaction includes $35m of social loan notes provided by Qantas Super and Australian Ethical Investment.
7 August 2024 - NAB, CBA and Bank Australia are backing For Purpose Investment Partners (For Purpose), Australia’s pioneering impact investment manager, with over $260m of debt facilities. The facility will support the For Purpose Aged Care Australia (FPACA) platform for the acquisition of Signature Care.
FPACA is a not-for-profit aged care platform focused on achieving excellent health and wellbeing outcomes for residents and attracting and retaining quality staff. The platform brings together Luson Aged Care and Signature Care and will have over 2500 beds creating a top 15 Australian aged care provider. The support of NAB, CBA and Bank Australia follows the landmark commitment of institutional investors Qantas Super and Australian Ethical Investment, announced in April 2024.
Announcing the commitment Michael Traill, Executive Director of For Purpose said “We are delighted to partner with NAB, CBA and Bank Australia to support the expansion of our aged care platform. This further expands our existing relationships with NAB and CBA and we are excited about our first partnership with Bank Australia. With this debt facility the banks are demonstrating their leadership in financing social impact in Australia while supporting better outcomes for thousands of Australians in aged care.
“The inclusion of $35m in social loan notes is a further endorsement of the strength of the FPACA platform to deliver institutional grade long term financial returns and social impact.”
Toby Hall, Chair of FPACA said “We have an ambition of transforming the aged care sector to have a broader social impact that starts with person-centred care and a valued workforce. The support of the banks, preceded by that of institutional investment, demonstrates the value of aged care and the role it plays for Australians and their families.”
John McCarthy, Head of Corporate Health, NAB said “NAB is delighted to be partnering with FPACA as they continue to support the aged care sector and bring critical social infrastructure to regional locations. As a banker to the seniors living sector for over 10 years, I know how important the investment in quality aged care is to communities. I’m proud that the NAB Corporate Health team has played a role in enabling such an investment and look forward to seeing it come to life.”
General Manager, Major Client Group CBA Craig McQuillen said “We are proud to support For Purpose in their ambition to transform the aged care sector and create positive social impact. The deal features a unique social loan note structure which aligns investors to long-term returns and is the largest transaction of this nature in our Business Bank to date.”
Bank Australia Head of Impact Lending Tim Von Ess said ‘‘Through Bank Australia’s impact lending we aim to meet our customers’ expectations that their money is used to generate positive social and environmental impact. We’re pleased to be involved in FPACA’s acquisition of Signature Care and helping to increase in the supply of high-quality aged care accommodation and care for older Australians.’’
The commitment supports the previously announced strategic acquisition of Signature Care by FPACA. With eight operating aged care facilities, the potential growth pipeline includes six development sites across Australia with a focus on regional centres.
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Michael Traill, Executive Director and co-founder of For Purpose Investment Partners is interviewed on the latest With Purpose podcast by David Knowles. The episode overview is 'Michael Traill AM made his name at Macquarie Bank as a successful private equity investor, before jumping ship to foster social entrepreneurship in Australia as founder of Social Ventures Australia. This journey led him to the field of impact investing, a field in which he is now acknowledged as a pioneering leader and elder statesman. Today, Michael is Executive Director of For Purpose Investment Partners and Chair of the Paul Ramsay Foundation. In this episode, Michael reflects on what he has learnt during his career, and shares unique insights in relation to investing, leading, governing and tackling a wide variety of social issues.’
2 May 2024 - Leading Australian social impact investment fund manager For Purpose Investment Partners (FPIP) has acquired national meal delivery business Tender Loving Cuisine (TLC) through FP Ability Pty Ltd (FP Ability), its Disability Services platform. Primarily serving aged care customers accessing funding through Home Care Packages and the Commonwealth Home Support Programme, TLC complements FP Ability’s existing portfolio company, Able Foods. The strategic acquisition bolsters FP Ability’s presence in a growth market with quality products that support customer health and wellbeing.
FPIP Managing Director Victoria Adams said “We are excited to announce the acquisition of TLC. This represents an opportunity to grow the offering and impact of our meal platform with complementary companies that are focused on improving health outcomes and increasing choice for customers. With established operations and serving a customer base that includes seniors and people with disabilities, TLC is a highly values-aligned company that will continue to deliver strong outcomes into the future.”
Founded in 1995 by Jack Barker, TLC was established in Sydney and has expanded to national operations. TLC offers home-style, high-quality healthy meals delivered directly to customers and has steadily built a strong reputation and brand recognition.
Mr Barker reflected “for almost 30 years we’ve built a great business that supports people with a home-cooked meal when they can’t make it themselves. We’ve helped our customers as they recuperated following a hospital stay, or provided a service that meant people could better manage at home as they age. I am proud of what we have achieved, and I am confident that FP Ability is the right owner to take the business forward. I am excited about the opportunity that TLC now has under the FP Ability banner to grow and provide better access to healthy meals, including opportunities to work together with Able Foods.”
FP Ability is pursuing a goal of increasing access to high-quality, nutritious meals that will improve the health outcomes for vulnerable Australians including elderly people and people living with disabilities. TLC brings this goal closer with Able Foods, a business focused predominantly on serving National Disability Insurance Scheme (NDIS) customers with a growing presence in the Home Care Package market, acquired in December 2022.
Victoria explains, “We know that improved nutrition and choice leads to better health outcomes which supports wellbeing, independence, and an overall better quality of life for individuals. For almost 30 years now TLC have been making a positive impact for customers, we are proud to build on Jack’s legacy and increase our presence alongside Able Foods.”
Funding for the acquisition will come from FPIP’s Social Impact Fund I. FPIP was advised by Hamilton Locke and BDO, while TLC were advised by HWL Ebsworth and EP Advisors.
About For Purpose Investment Partners (FPIP)
For Purpose Investment Partners is a not-for-profit social impact investment manager, created to pursue an important mission; bringing private sector capital and capabilities into sizeable businesses and projects to create significant social impact. Established in 2018 by pioneering impact investor Michael Traill AM, FPIP have grown to have $185m of funds under management.
Media contact
Enquiries@fpinvest.com.au| 0405 306 414
24 April, 2024 - Leading Australian impact investment fund manager For Purpose Investment Partners (“For Purpose”) has announced a $75 million commitment from Qantas Superannuation Limited (“Qantas Super”) to its aged care platform. The funds from Qantas Super, one of Australia’s largest not-for-profit corporate super funds, represent the first major institutional commitment to For Purpose. Australia’s leading ethical investment fund manager, Australian Ethical Investment (AEF), has also made an initial $10 million commitment to the For Purpose aged care platform, with the potential for that to grow.
These commitments will enable the anticipated completion of a large-scale aged care acquisition. The acquisition will take the number of facilities owned by For Purpose’s not-for-profit aged care platform FP Aged Care Australia from four to nineteen, including development sites. Luson Aged Care, a wholly owned subsidiary of FP Aged Care Australia, will remain as the operator and approved provider of the facilities.
In addition to Qantas Super’s $75 million commitment, which is being led by Qantas Super’s Chief Investment Officer Andrew Spence, For Purpose manages almost $100 million committed from family offices, foundations, and high net worth individuals. It has just under $80 million is in its Social Impact Fund, which aims to drive institutionally appropriate risk weighted returns with measurable social purpose.
Alongside its existing $20 million investment in FP Aged Care Australia, For Purpose also manages investments in vocational education and training, specialist disability accommodation, and disability food services.
Mr Traill described the Qantas Super investment as a breakthrough for the aged care platform.
“The commitment of Qantas Super will enable us to significantly grow our platform in aged care, and hopefully together we can achieve our ambition of transforming the aged care sector. Andrew and his team backed our practical belief that the right way to drive attractive long term financial returns is to be very explicit about quality and measurable social impact,” he said.
“We have been very patient in building the right aged care team and platform led by Executive Chair Toby Hall, who has been key in driving this work and finding the right assets. Toby brings a depth of experience from his prior roles as CEO at Mission Australia and St Vincent's Health Australia, as well as being a founding colleague on the first board of Goodstart. That combination of accessing capital and operating critical human service sectors at ethical scale is vital.”
Mr Spence said that the commitment to For Purpose aligns with Qantas Super’s approach of partnering with best-in-class investment managers.
“We’re very open to backing early stage or first-time fund managers which has been a consistent source of value add for Qantas Super’s members. Our focus is on identifying a manager’s sustainable competitive advantage in terms of people, capability, alignment of interest, and a strong track record. Michael has assembled an outstanding team who share the twin passions of delivering attractive financial returns, which is our first priority, and a strong ethical focus. I can’t think of a more important combination in aged care.
“For us, it’s always about partnering with the right talent. With our team having worked very closely with the For Purpose team, we are confident our investment partnership is in good hands.”
Australian Ethical’s Chief Investment Officer Ludovic Theau said “we are delighted to partner with For Purpose to grow its aged care platform, delivering high quality services to residents, and offer appropriate risk-adjusted returns for investors.”
“We’re growing our investment in impact investing more broadly; we see strong alignment between For Purpose’s values and culture and Australian Ethical’s Investment Charter.”
The partnership through its focus on social impact reflects Qantas Super’s commitment to investing in environmental, social, and governance (ESG) themes, which is further supported by both partners in Qantas Super and For Purpose being not-for-profit fund managers.
“At Qantas Super, we believe ESG factors increasingly impact investment returns and risks and contribute to us delivering sustainable growth to our members,” Mr Spence said.
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Media contact
Enquiries@fpinvest.com.au | 0405 306 414
About For Purpose
For Purpose was founded in 2018 by leading impact investor Michael Traill and philanthropist and entrepreneur Mark Carnegie to focus on large-scale impact investing. Its approach is modelled on the precedent established by Goodstart Early Learning, which Mr Traill launched in 2010 and became one of the country’s most successful large scale social enterprises, and the largest provider of early learning and care. For more information, visit www.fpinvest.com.au
About Qantas Super
Qantas Super is one of Australia’s largest corporate super funds. It exists for people who are working for, or have worked for, the Qantas Group and their spouses. Qantas Super has been working for its members since 1939 and has over 26,000 members and approximately $8.5 billion in assets under management. For more information, visit www.qantassuper.com.au
About Australian Ethical
Australian Ethical is Australia’s leading ethical investment manager. Since 1986, Australian Ethical has provided investors with investment management products that align with their values and provide long-term risk adjusted returns. Investments are guided by the Australian Ethical charter which shapes its ethical approach and underpins both its culture and vision. Australian Ethical have over $9.0 billion in funds under management across managed funds and superannuation. For more information, visit www.australianethical.com.au
For Purpose Investment Partners acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander people.
We believe that diversity, equity and inclusion at For Purpose Investment Partners are critical in our efforts to create significant social impact. Diversity in the team allows us to better represent the diversity of thought and experiences of the communities that we are aiming to serve, promotes a healthy and thriving working environment, and delivers innovative and sustainable outcomes for our communities, our people, our investors and our partners.
