A new £6m social investment fund will aim to invest in businesses in the UK and abroad that provide positive social benefits.
The Aros Altru fund, started by investment management specialist Aros Capital Partners, will solicit investments of more than £6m and use them to make investments of up to £250,000. It will be launched early in 2010.
"We're looking to be a finance-first business," said Tom Kabuga, an analyst for Aros Altru. "We aim to make money for the people who invest in our fund, but we will do so while investing only in organisations that make a positive social impact."
Kabuga said the fund would be one of the first private equity funds in the UK to invest only in organisations with a big social impact. In order to receive investment, he said, organisations would need to demonstrate a high level of "social capital"; but the fund would not lend at below market rates.
"We believe there is a vast pool of capital out there that is interested in creating social good, but also wants to make money," he said.
The fund is already examining its first investment and has had commitments from several investors, he said.