Dallas-based social enterprise Good Returns and alternative asset management firm Inverdale Capital Management have launched the Guarantee-Investment-Values Strategies (GIVS) which, in addition to targeting a financial return, takes into account an impact weighting and provides guarantee capacity for impact lending programs.
GIVS will immediately expand the guarantee capacity for Good Returns’ Cycle program. Through Good Returns, participating companies provide capital in the form of a one-year interest-free loan, or “cycle.” Good Returns then deploys the capital to vetted groups that address social challenges using financially and operationally sustainable models, also called “impact organisations.” The loan increases the effect of the impact organisation and is repaid a year later. Since the Cycle program requires repayment of capital, the model not only encourages sustainability, but actually requires it. Good Returns provides access to no-cost growth capital only for organisations that have demonstrated sustainable, long-term solutions.
“Guarantees make it possible for companies to participate in much larger Good Returns’ cycles,” says Kyle Lukianuk, President of Good Returns. “That means a guarantee can enable more women to start their own businesses, send more children to school and provide clean drinking water to more communities around the globe.”
Prior to the development of GIVS, Good Returns only provided guarantees for its Cycle program through philanthropic partnerships. Now that guarantors have options that are more than just philanthropic, Good Returns’ Cycle program is well positioned to scale.
“Investors are increasingly asking if high-performance strategies can also create high impact,” says Ryan Small, managing partner at Inverdale Capital Management. “With this innovation, Good Returns is creating social impact on multiple levels.”
GIVS participants designate a portion of their managed assets for participation in Good Returns’ guarantee. The guarantee-designated assets are used as collateral, but remain continuously invested throughout the cycle.
As a result of GIVS, Good Returns plans to launch new local and international cycles throughout 2018.
