Funding
Supporting the growth of sustainable investment
Increasingly, investors take environmental, social and governance (ESG) considerations into account when making investment decisions. As a result, ESG funds have seen exponential growth over the last few years and Bloomberg expects ESG assets to hit $53 trillion by 2025, over a third of global AUM.
Sustainable finance is critical to driving investments towards supporting a resilient economy and a sustainable recovery from the impacts of the COVID-19 pandemic as well as driving social and climate change innovation and enabling the achievement of the Sustainable Development Goals (SDGs)
Because of our corporate finance and investment banking heritage, we are passionate about supporting the growth of the sustainable investment market, from helping entrepreneurs to raise capital from impact investors, embedding ESG practices in private equity to designing social impact bonds.
Examples:
Helping a startup offering innovative energy solutions to raise seed funding to develop a prototype
Developing the business and financial model for a social impact bond aimed at improving employment outcomes for young people
Performing ESG due diligence on a healthcare company to inform the investment decision of a Nordic impact fund
Developing the impact investing strategy of a foundation focusing on environmental issues
Because of our corporate finance and investment banking heritage, we are passionate about supporting the growth of the sustainable investment market
Our areas of focus
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At Aleron, we have been at the forefront of the development of the social impact bond market in the UK and have always supported impact entrepreneurs raising the capital they need to realise their strategic ambitions. We were one of the first organisations in the UK to offer impact investment readiness services to organisations seeking to attract impact investment. We work with our clients to help them develop their investment pitch, identify the right impact investors and facilitate the due diligence process.
We also work with impact investors whether a private equity firm, a foundation, a fund or a high-net-worth individual to support them in making their investment decisions and managing their portfolio of impact investments.
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As social impact and sustainability experts, we bring expertise across the full spectrum of ESG considerations, regulations and innovation, including decarbonisation, waste reduction, sustainable sourcing and diversity and inclusion. Our suite of proprietary diagnostic tools, benchmarks and methodologies, enables us to rapidly analyse a target’s ESG maturity, to reveal both upside potential and areas of risk. We provide comprehensive customised ESG due diligence reviews across supply chains, product stewardship, human capital, diversity and inclusion, climate change, carbon emissions, waste minimisation, biodiversity impacts, water quality, fuel, and energy efficiency,
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A social impact bond (SIB) is a type of investment instrument that uses private capital to fund social programs with the aim of generating a positive social outcome and a financial return for investors to cover the upfront capital required for a provider to set up and deliver a service. The service is set out to achieve measurable outcomes established by the commissioning authority (the outcome payer) and the investor is repaid only if these outcomes are achieved. SIBs differ from traditional fee-for-service contracts due to a focus on outcomes rather than inputs or activities.
We work with service providers and investors to design social impact bonds. We help our clients to identify the outcomes they should focus on and develop the financial, business and delivery models supporting the transaction.
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Non-profit organizations raise over £10bn annually in the UK. We support them in developing fundraising strategies and capabilities to achieve their income objectives. Our work ranges from redesigning their operating model, structures and key processes to using advanced analytics to help them better segment their audiences, improve their supporters’ journeys and ultimately maximise their income generation.
Relevant Expertise
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ESG diligence
Environmental, social and governance (ESG) factors are poised to shape the financial investor industry for years to come.
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Social Impact Bonds
To survive and thrive in today’s business climate, organisations don’t just need to adapt: they need adapt quickly and effectively, again and again
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Impact
Our team brings extensive experience in social impact and sustainability reporting, including social return of investment, health economics, impact evaluations and sustainability reporting standards