Social Impact Italia: impact investing | CDP

Social Impact Italia

"Social Impact Italia" is the investment platform ('SII Platform') jointly promoted by CDP and the European Investment Fund (EIF) with the aim of fostering the development of the Italian market for inclusive finance in support of social entrepreneurship.

 

The platform

Social Impact Italia is Italy’s first active platform in the area of impact investing, the social impact finance segment related to venture capital investments, acting with the aim of stimulating innovative business initiatives and promoting social inclusion.

The SII Platform concept is based on CDP's desire to actively involve private capital in the social sector, a sector traditionally reserved for public finance and non-profit entities, by investing venture capital in financial operators active in this area in various capacities.

With this in mind, Social Impact Italia's investment plans are conceived with a "patient" investment logic, which combines long-term economic sustainability with investments that produce a positive and measurable impact on society and local areas, identified through a structured and selective assessment process.

Moreover, the SII Platform is one of the cornerstones of CDP's broader strategy as a National Promotional Institution in sustainable finance, with varied activities that include issuing social bonds and investments in the social housing sector and which, thanks in part to its partnership with the EIF, enables CDP to channel additional funding from European Commission and EIB Group programmes for the benefit of Italy.

How it works

Social Impact Italia has a total budget of 100 million euros, allocated in equal parts by CDP and the EIF. These funds will be used for the strategic strengthening of financial players specialised in social impact finance, such as investment funds and financial intermediaries, in order to expand their capacity to act in favour of social entrepreneurs and, in general, of other finance operators in the Third Sector.

The ultimate goal of Social Impact Italia is to stimulate the launch of new operators and social impact initiatives, as well as consolidate and expand those already existing. It aims to promote professionalisation in this area of the financial industry and invest substantial funds to boost the weight of this market, which is still underdeveloped both in terms of size and number of operators.

Investment Plans

Social Impact Italia will adopt a flexible investment approach inspired by international best practices, making the most of the EIF's consolidated international experience in the sector and CDP's knowledge of the domestic market.

From an operational point of view, the Platform's investment plan foresees venture capital investments aimed at the achievement of specific impact objectives (social and economic) and focussed on two main target groups:

  • funds and investment vehicles specialising in impact investing, with a focus on social entrepreneurship;
  • financial institutions active in social lending and microfinance.

The Social Impact Italia platform will identify potential investment opportunities by assessing their overall profile, not only in terms of profitability and economic sustainability, but also and above all, in terms of the social impact generated by the underlying initiatives, which will be periodically assessed using specific impact indicators.

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