The housing crisis is a pressing issue: high energy prices, inflation, and a tight housing market have resulted in over 1 million people in the Netherlands being without a home. There are currently 36,000 registered homeless individuals, but in reality, many more live without a roof over their heads, sufficient money to live on, or a deep sense of physical belonging. Kansfonds is dedicated to preventing and eradicating homelessness and has set a new course over the past year. The revised mission now states: ‘Everyone deserves a home.’ And a home entails more than just a roof over your head.

Kansfonds’ Request

As an endowed foundation, Kansfonds traditionally invests its assets and makes annual allocations through donations. Kansfonds aims to explore beyond traditional financial methods on both fronts. To this end, the fund has engaged Social Finance NL to explore the possibilities of impact investing and to assist with implementing these impact investments. A key consideration is that the investments must align with the revised mission.

The SFNL Approach

Social Finance NL initially addressed the following questions for Kansfonds: “Which financial instruments are suitable for Kansfonds, why consider impact investing, and what are compelling examples?”

Subsequently, we developed an overview of the specific possibilities for Kansfonds in the area of impact investing. For instance, we engaged in discussions with other funds that already utilise impact investing to achieve their goals, collaborating with Kansfonds. We also identified the conditions for a successful impact investment and the recommended strategy.

Finally, we prepared a recommendation for the board to actively pursue impact investing.

Result

The board endorsed the new direction and decided to implement impact investing across both the allocation and asset sides to advance the impact goals. This will also entail considering initiatives that align with Kansfonds‘s impact objectives but fall outside the current investment mandate in terms of risk profile. For example, these initiatives may carry higher risks, involve alternative investment forms, or be illiquid.

Implementation of Impact Investing

We are actively participating in the implementation phase of impact investing to enhance Kansfonds’s investment expertise in this area. We assist through knowledge transfer and manage practical matters, such as streamlining processes and organising the necessary documents to put the investment strategy into effect. The first impact investments in projects focused on preventing homelessness have already been executed.