Welcome to Tuesday and doubtless a few new unsubscribes amongst those who sadly do want a land of milk and honey growing on trees.
Sir Ronald Cohen has been speaking in Australia and noting that the options outside of PFS and social investment can look a bit bleak, as government is de facto bust.
Thank goodness we do have SIB structures to make a brave new world – that’s my positive message for today and everyday in SIB news…
British private equity and social finance pioneer Sir Ronald Cohen has met with Financial System Inquiry panel member Carolyn Hewson to promote social benefit bonds and the establishment of an Australian social investment bank with $350 million seed capital.
Australia should mimic Britain’s £700 million ($1.26 billion) Big Society Capital, an institution he launched in April 2012 at the behest of Britain’s Prime Minister David Cameron, Cohen says.
As co-founder and inaugural chair of the social investment bank, Cohen is a passionate advocate for the wholesale funding model. As Australia has roughly half the population of Britain, a local version would need about half the starter funds to be effective in the capital markets, he says.
Local proponents of the idea, such as social finance organisation Social Ventures Australia, have suggested the initial capital to seed the new bank come from a combination of unclaimed public monies in lost superannuation and bank accounts, government grants, and compulsory contributions from Australia’s biggest banks and corporations.