Galeforce Capital, the first global philanthropic investment fund dedicated to supporting LGBT social enterprises, announced on Feb 22 that it will launch the first global social enterprise competition this year.
Nonprofit Enterprise and Self-sustainability Team (NESsT) defines a social enterprise, which is also referred to as a "nonprofit enterprise," "social-purpose business," or "revenue-generating venture" as a organisation that operates with a "double bottom-line" of generating financial return while simultaneously advancing a social mission.
Galeforce and LGBT Capital, a specialist Corporate Advisory and Investment Management Unit of Galileo Capital Management focused on the LGBT consumer market, also announced a strategic alliance to offer a world-first focus on Impact Investing in the LGBT sector, combining sound commercial investment with social enterprise impact.
Both organisations share the view that "Impact Investing is an asset class on the rise globally and that commercially sound LGBT related investments and promoting LGBT social enterprise are no longer mutually exclusive in this increasingly blended value marketplace," according to the Feb 22 media release.
“We are proud to be working with Galeforce Capital and with such exciting projects. We believe the socially responsible angle to the LGBT orientated investment fund is very powerful and believe that Impact Investing is a strong force for change,” said Paul Thompson, co-founder of LGBT Capital.
The release says that first among LGBT Capital’s socially screened offerings will be a private equity investment fund focused on social networking investment opportunities within the LGBT sector. "This specialist investment vehicle will focus on new media channels to connect with the LGBT consumer sub-sector and while the primary investment focus will be on creating attractive financial returns, the investments will also be vetted on ‘Impact Investment’ merits and managed to encourage social-enterprise and responsibility."
A portion of LGBT Capital’s revenue from its portfolio of LGBT commercial enterprises will be reinvested in Galeforce Capital’s efforts to support LGBT social enterprises.
“We need to develop responsible ways to leverage the full potential and power of the market to address the critical LGBT social and economic challenges of our day,” said Lee Davis, a social entrepreneur and Galeforce Capital founder. “Our strategic alliance with LGBT Capital creates the perfect opportunity for impact investors to enable the growing LGBT social enterprise marketplace and, in so doing, maximise their social and financial returns."
In 2009, Davis published the first book on the growing LGBT social enterprise market, End of the Rainbow: Increasing the Sustainability of LGBT Organizations through Social Enterprise, in which Fridae was profiled in a case study. He launched Galeforce Capital the following year to respond to the potential of LGBT social enterprise. Galeforce Capital provides financial and business development support to plan for, launch or expand LGBT social enterprises. Galeforce Capital is managed by NESsT, an international social enterprise development organisation, founded by Davis and Nicole Etchart.
Entry details for the social enterprise competition will be posted on the Galeforce Capital website in March and promoted globally with the assistance of LGBT Capital and a global network of sponsors and supporting partners. Winners of the competition will be selected by an international panel of judges and will receive a package of financing and business development support to plan for, start-up or expand their LGBT social enterprise.
Fridae is a media partner of the social enterprise competition.
[Disclosure: Fridae CEO Dr Stuart Koe is a member of Galeforce Capital's advisory board.]