Place based investment works to create economic and social outcomes through investing in a specific region or community, particularly those experiencing decline or disadvantage. Such investments create sustained, positive cycles of economic development and regeneration by providing local businesses with access to capital, markets, and growth opportunities, as well as fostering job creation, and spending power in the community.
Case Studies in Place Based Investment
- Bridges Ventures has pioneered this approach in the UK and seen outstanding results. The Bridges Fund targets new businesses for investment in the lowest 15% of socio-economic communities in the UK. One of their investments, The Gym, was recently rewarded the UK national champions in European Business Awards, and was included in the Sunday Times Fast Track 100 as one of the fastest growing companies in the UK. The Gym provides accessible health and fitness services to local residents, at an affordable price.
- Finance Birmingham is a venture capital company owned by Birmingham City Council, established in 2010, to fill the gap in accessing capital left by the recent global recession. That fund targets small and medium sized businesses across all industries. A video is provided below:
- Investing for Growth was launched in June 2014 by five UK Local Authority Funds, who have collectively committed the equivalent of $240 million to creating social and local economic benefits. One of the Funds, Greater Manchester Pension Fund, committed one-third of its total allocation.
- A number of place based, shared value partnerships, are also emerging in Australian communities, like the community supply chain innovation of Bell Bay Aluminium in Tasmania.
What to Read
- The most comprehensive research on the potential of place-based investment in Australia has been undertaken by Ingrid Burkett (2012) Place Based Impact Investing in Australia Part 1 and Place Based Impact Investing in Australia Part 2
- An overview of place based investing in the US, Improving the Outcomes of Place Based was featured in Community Investments in 2010, exploring achievements of the last five decades.
- An interesting article providing a global overview on the increasing amount of place based investment was written in November 2014 by Pensions & Investments Impact Investors Shift Gears to Accommodate Specific Goals