Realize Capital Partners Announces Final Close of Landmark Fund I

TORONTO – Realize Capital Partners, the broker of the Government of Canada’s Social Finance Fund (SFF), today announced the final closing of its equity-funded, impact fund, Realize Fund I, raising $276.7M in total capital – $141.7M of private capital to match the Government of Canada’s $135M2023 Realize Fund investment. SFF’s ambition is to use public funds to expand and consolidate the participation of private funds in the social finance market. The fundraising underscores investors’ interest in stable and equitable Canadian investment solutions and the confidence of Realize Capital Partners to deliver strong results and financial returns for years to come.

Fund I’s $276.7M makes it one of the largest funds in the Canadian impact investment market; research has shown that recent impact funds have typically hovered around $10-100M¹ width. The tight closure is significant given the difficult fundraising environment that private market funds, not just impact funds, have been facing for the past few years.² Raised private capital also helps many funds with less leverage, as Fund I’s fund-of-funds model typically takes large, aggressive positions at first close to help stimulate additional investment.

With this final close, Fund I, which has completed approximately 40% of its planned investments, will continue to build a portfolio that addresses inequality through multi-stage, leveraged investments, while focusing on competitive risk-adjusted returns. Examples of investments made to date include a private credit housing fund that builds affordable housing in Indigenous communities; a micro-loan fund that provides loans to foreign-educated professionals so that newcomers can meet their economic potential; a private cleantech fund that invests in commercial-ready solutions that decarbonize the electricity supply and electrify transportation; and a health-focused fund that invests in new treatments and technologies to fight cancer.

“There has been a lot of discussion recently about the importance of the government’s plans to accelerate investment from Canadian wealth holders to local companies and projects that improve the lives of Canadians. With this final closing reached, we believe the Realize Fund can provide the framework to do just that. The closing allows us to continue to build a strong portfolio of fund partners that enable joint ventures that will be able to sustain the Canadian economy. and in the future.”

“When Canadian investors support social capital organizations and social causes, they experience both financial benefits and positive social, economic and environmental outcomes for Canadians. With more than 80 social cause organizations supported through the Community Capital Fund, this historic event demonstrates how purpose-driven investments strengthen Canada’s economy and communities.”

“RockCreek Canada is pleased to partner with Realize Capital Partners as it works to grow and strengthen Canada’s social finance market. Its collaboration with the Social Finance Fund creates a diverse platform to increase access to high-impact investment opportunities and support the continued development of Canada’s impact investing ecosystem, including emerging fund managers and startups. As the OCcalIO organization serving the Toronto Region, OCcalIO serving the Foundation Foundation and and the Toronto Region Community Foundation, this investment represents an important step in furthering our focus on the Canadian impact investment market.”

“We have always wanted to deepen our social equality work and we recently launched the Inclusive Opportunities Fund to make this official. In order to better address the social challenges that Canadians face, we knew that we needed to use a lot of banking and technology resources, to use both philanthropic and investment strategies. Note that the Fund is the first comprehensive budget to open this important strategy and it will activate this important strategy in the future, and it will be an important investment step in the future. and impact on investment.”

“The Concordia University Inter-Generational Fund has been among Canada’s leading institutional investors in sustainable and impact investing, something we are very proud of. Realize Fund I provided a compelling opportunity to further deepen this approach through a diversified, risk-free platform, providing exposure to a variety of impact managers and investment opportunities across Canada that closely align with Concordia’s mission and priorities. We are proud to support the fund as a lead investor with a $25M commitment – we feel that the investment not only meets our core mission but sets a new level of portfolio alignment very closely with our institutional mission. We are encouraged by the successful closing of Realize Fund I and hope that it contributes to improving the adoption of impact investing across Canadian institutional portfolios.”