Social Finance Fund | Fonds de finance sociale – CAP Finance

Fonds de finance sociale – CAP Finance was announced as one of three fund managers for the Social Finance Fund on May 29, 2023 and will invest specifically in Quebec’s unique social finance ecosystem to expand the social finance market in the province, including by increasing access to social finance for equity-deserving groups and for non-profit social purpose organizations. The other fund managers, Boann Social Impact and Realize Capital Partners, will invest in the rest of Canada.

Fund managers will allocate a minimum of 35% of their investments into initiatives promoting greater social equity, including a minimum of 15% into initiatives promoting greater gender equality. The Social Finance Fund will help Canada achieve the United Nations Sustainable Development Goals. Canada is advancing the Sustainable Development Goals to build a more prosperous, healthy and sustainable future for all with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests. By increasing the accessibility and flexibility of financing opportunities in the social finance market, the Social Finance Fund will help social purpose organizations grow, launch new programs, and serve the critical needs of diverse communities in Canada.

The Social Finance Fund is a long-term program that will run until March 31, 2039. Most of the funds are expected to be repaid at the end of the program. Fonds de finance sociale – CAP Finance will receive $89,808,426 in funding for the period of 2022–23 to 2025–26.

Fonds de finance sociale – CAP Finance is a network of financial institutions and organizations that are working in Quebec and focused on the social economy and solidarity-based finance. Led by the Réseau d’investissement social du Québec and the Fiducie du Chantier de l’économie sociale, nine key investors are involved in the project.

According to the latest data from l’institut Statistique du Québec, the social economy in Québec is made up of 11,200 social purpose organizations that generate just under $50 billion in revenue and account for 220,000 jobs in the province. 

The social economy is a socioeconomic driver in Quebec. Diversified networks of organizations and individuals support growth and promote the sector’s contribution to community development. Its ecosystem is based on consultation and representation bodies that coordinate the efforts of various components.

Designed through a social equity lens, the Social Finance Fund aims to reduce barriers faced by equity-deserving groups in accessing flexible financing opportunities. Fund managers have committed to the 50–30 Challenge and will work toward gender parity (50% women and gender-diverse people) and more representation of equity-deserving groups (30%) in their governance and senior leadership.

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