Den Sociale Kapitalfond Effekt

At Den Sociale Kapitalfond Effekt, we use social impact investments to create better lives for people in vulnerable positions through innovative and long-term partnerships.

23
Investments since 2021
2.081
Citizens helped since 2021
140
Estimated public savings since 2021

Den Sociale Kapitalfond Effekt develops and finances social impact investments in close collaboration with innovative municipalities or other public actors, companies and professional suppliers of welfare solutions.

The investments are structured as social impact bonds (SIBs), where social impact and financial returns are directly linked. Social impact bonds are characterised by the fact that the client (e.g. a municipality or a company) only pays for the outcomes achieved.

All our investments are based on impact initiatives and social initiatives that aim to improve the lives of citizens in vulnerable positions while generating savings in public budgets.

What?

A social impact bond is a partnership between a client (often a municipality or a company), a supplier of a welfare solution and an investor who has entered into an agreement to solve a challenge in society. This could include:

  • Education and employment of vulnerable citizens
  • Reduction of sick leave in the public sector
  • Prevention of social vulnerability
  • Helping homeless people find viable homes
  • Health-promoting initiatives – for example, rehabilitation of citizens with head trauma

Social impact bonds are typically organised as follows:

  • The investor assumes the financial risk by ensuring the necessary liquidity before, during and after the initiative until the client pays for the achieved outcome
  • The supplier, often a professional welfare provider, is responsible for delivering the agreed outcomes. The supplier should only focus on the outcomes of the initiative and not on delivering specific activities
  • The client is often a municipality, a region or a company that wants to pay for a given outcome.

How?

The investor finances the supplier’s initiative. The better the social outcomes achieved, the greater the client’s financial gain/savings. The savings form the basis for repayment of the investment, and thus the quality of the effort, the social impact and how much the client ultimately pays are closely linked.

Den Sociale Kapitalfond Effekt has active or completed social impact investments in collaboration with the municipalities marked on the map.

Investment focus

Our welfare system often falls short for people in the most vulnerable positions. At Den Sociale Kapitalfond Effekt, we want to show that they are worth investing in.

Den Sociale Kapitalfond Effekt’s investment strategy is aimed at impact-creating initiatives or social initiatives with a focus on ensuring citizens in vulnerable positions a better life while creating improvements in public budgets.

For example, we focus on concept development within the following focus areas:

Families in vulnerable positions

Homelessness

Sick leave and working environment

Obesity, diabetes and lifestyle diseases

Social housing initiatives

Examples of social impact bonds

Testimonials

Documents

Curious to hear more?

Jannik Tharben Buchholz
Managing Partner
+45 3131 9260
Fallback Image
Alexander Bjerregaard-Nielsen
Partner
+45 9149 7818