Call for expressions of interest to become a social finance wholesaler under the Social Finance Fund – Applicant guide

Part 1: Organization

Section A. Organization identification

We use the information you provide in this section to identify your organization.

Question 1: Legal name

What is your organization's legal name? The legal name is usually:

• the name on your registration with the Canada Revenue Agency (CRA) or provincial/territorial equivalent
• the name used on funding cheques, bank accounts, et cetera

Question 2: Operating name (if different from legal name)

What is the operating (or common) name of your organization (if it differs from the legal name)?

Question 3: Business or registration number

What is your 15-digit CRA business number? (For example, 123456789 RR 0001):

• for registered charities and not-for-profit organizations, provide your registration number
• you can find your CRA business number on tax-related documents or written communications from the CRA
• for more information, consult the Canada Revenue Agency

Question 4: Organization type

In up to 10 words, describe your organization (for example, non-profit multi-fund manager, social venture capital fund, community loan fund, private asset manager).

Question 5: Organization category

Choose 1 of the following:

• for-profit organization
• non-profit organization

Question 6: Year established

What year was your organization established?

Questions 7 to 11: Organization address

What is your organization's address? Give a complete address in a format recognized by Canada Post.

Questions 12 to 14: Telephone, fax and email

What is your organization's telephone number, fax number (if it has one) and email address?

Questions 15 to 19: Mailing address (if different from organization address)

What is the mailing address of your organization (if it differs from your organization's physical address)?

Questions 20 and 21: Telephone and fax

What are your organization's telephone and fax numbers (if the mailing address differs from your organization’s address)?

Section B. Organization contact

Questions 22 to 27

Please provide a main contact so that we may communicate with your organization about this proposal. This could be a manager, a director, or someone else.

Please complete the questions by following the instructions in the EOI Form.

Questions 28 to 33

Please provide a secondary contact in case we cannot reach the primary contact. This could be a manager, a director or someone else.

Please complete the questions by following the instructions in the EOI Form.

Section C. Profile of organization(s)

Question 34. Profile of Organization(s)

If applying to this Call for EOI individually, provide an overall profile of your organization, including:

• mandate
• key areas of work (for example, main activities, business lines, programs and initiatives)

If applying as part of a consortium, provide the above information for each organization involved as well as a brief description of the role of each organization involved in this proposal and the legal form the consortium arrangement will take.

Answer must be no longer than 1 page.

Part 2: Social finance wholesaler proposal

Section A. Proposal identification

Question 35: Proposal title

Give a short title that describes your proposal.

Question 36: Proposal summary

Provide a summary of your proposal, including an overview of the target asset classes, sectors, and/or regions of your investment strategy, objectives, and expected results.

Questions 37 and 38: Planned start and end dates

Indicate when you plan to start and end your investment strategy.

Section B. Investment strategy

Question 39: Investment strategy

Answer must be no longer than 10 pages if you do not address the optional elements.

Answer must be no longer than 12 pages if you do address the optional elements.

We want to hear about your vision and investment strategy for using the Government’s commitment of up to $682.5 million to contribute to the objectives of the Social Finance Fund. Please refer to the Objectives, the Description of the funding, and Eligible proposals sections on the funding page for further information.

Your answer should provide details on:

• the amount of funding you are seeking. This should indicate the amount of conditionally repayable funds sought, non-repayable repayable funds sought (up to 10% of the total), and the proposed annual allocation of all funds:
  • the scalability of your investment strategy should also be described. Please indicate the minimum amount of contribution funding required to execute your investment strategy. If a lower contribution amount would affect your strategy or outcomes, please indicate how. For funding in years 2026 to 2030, please provide a rationale for your proposed annual allocation of funds
• the nature of your planned investment strategy, including proposed asset classes, sectoral, and regional scope. This should include a high-level description of:
  • how the scope of the investment strategy contributes to the objectives of the Social Finance Fund
  • any anticipated non-financial support to be provided and the expected nature of financing to be made available to intermediaries as well as end-users of capital (in other words, social purpose organizations)
  • the strategies and networks that your organization has in place to develop a strong pipeline of prospective investments
  • please note if you are located in, or plan to invest in Quebec
• how investments would be sourced and selected, including:
  • how impact criteria would be considered alongside financial criteria
  • how the target for gender equality investments would be factored in
  • how a social equity lens would be incorporated into investment decisions
  • if you intend to establish additional targets (for example, relating to diversity, anti-racism, Truth & Reconciliation with Indigenous peoples, regional or sectoral reach)
• how your investment strategy will attract new investment into the social finance market and help ensure the Social Finance Fund meets its target of leveraging a minimum of $2 of private investment for every $1 of federal contribution. This should include information on:
  • your target for the expected quantity and ratio of other investment to be leveraged relative to the Government’s contribution
  • what type(s) of investors you expect to attract to the social finance market through your investment strategy, and whether leveraged investment will be at the wholesaler, intermediary, or deal level(s)
  • if you expect to leverage investment at more than one level, provide a high-level overview of the estimated distribution or share of leveraged investment and type(s) of investors at each level
  • if you plan to leverage investment at the wholesaler level by attracting investment directly into your pool of capital, describe your fundraising strategy, and explain how you will balance direct investors’ financial goals with the need to meet the Social Finance Fund’s objective of creating affordable and flexible financing opportunities for social purpose organizations
  • describe any plans to de-risk private investor capital using Social Finance Fund contributions (for example, to take a junior position relative to private investors to reduce risks to the extent needed to facilitate investment)
• a brief description of the tools and procedures that would be used to identify early sign of non-performing investments
• a high-level risk identification and mitigation plan with regards to the investment strategy:
  • where applicable, please provide a brief overview of whether and how key risks or challenges, as well as the mitigation strategies, would differ between your proposed social finance investment strategy relative to your organization’s traditional investments
• additional principles, agreements or standards you would propose to adhere to, for example: Call to Action 92 of the Truth and Reconciliation Commission, the United Nations Declaration on the Rights of Indigenous peoples, the United Nations Principles for Responsible Investment or others

(Optional) If you propose to operate in Quebec, please provide an overview of how your investment strategy would engage with and complement the existing social economy and solidarity finance ecosystem. You may include 1 additional page if you choose to address this element.

(Optional) If you are proposing blended finance models, please outline your proposed strategy for blended finance investments, including justification of the need for non-repayable contributions and how the proposed use(s) would increase access for under-served social purpose organizations that may not otherwise be reached (for example, social purpose organizations led by or serving equity-deserving communities). You may include 1 additional page if you choose to address this element.

Section C. Other market building activities

Question 40. Other market building activities

This question is optional – to be completed if other market building activities are proposed (that is, use of contribution funds, whether repayable or non-repayable, for activities outside the direct scope of the proposed investment strategy, but in support of the Social Finance Fund’s objectives).

Answer must be no longer than 2 pages.

Please outline your proposed market building strategy, including:

• key activities and expected outcomes. Please indicate clearly how these align with your vision for the social finance market and investment strategy
• if applicable, how the proposed activities would increase access to social finance investment opportunities for under-served social purpose organizations (for example, social purpose organizations led by or serving equity-deserving communities; social purpose organizations operating in rural, remote, or economically disadvantaged communities)

Section D. Governance

Question 41. Governance

Answer must be no longer than 3 pages.

Please explain how you will establish the investment governance framework and structure of the wholesaler. As relevant, this should include information on your:

• planned governance bodies (for example, Investment and Advisory Committees), a brief description of the planned composition of such bodies, their role with regards to investment decisions. If applicable, please indicate whether any Diversity, Equity and Inclusion policies would be applied to governance bodies
• investment decision-making processes, including a brief description of how these processes maintain accountability, transparency, fairness, responsibility, and social equity
• internal control systems, both financial and operational, as they relate to initial investment evaluation, ongoing monitoring, funding and disbursement, and return distribution processes
• portfolio management frameworks to monitor holdings

In your answer, please describe how your governance frameworks would be designed for the social finance investment context and to managing your portfolio in accordance with a social equity lens.

Please also indicate where the wholesaler will be legally organized within Canada.

Section E. Impact measurement and management

Question 42. Impact measurement and management

Answer must be no longer than 3 pages.

Please tell us how you would work with social finance intermediaries and social purpose organizations to implement a robust impact measurement and management approach. As relevant, this should include information on:

• a high-level overview of which Sustainable Development Goal(s) and specific types of impacts you intend to contribute to through your investment strategy
• your planned practices and tools to identify intended impacts and performance measures, collect data and information, gauge performance and report on outcomes achieved
• how you would support strengthened impact measurement and management capacity at the intermediary and social purpose organization level, including consideration for emerging entities led by or serving equity-deserving groups
• how you would work towards alignment with recognized impact standards, principles or frameworks such as the impact data standard of the Common Approach to Impact Measurement, the United Nations Sustainable Development Goals, and others as applicable
• how you would integrate a social equity lens into its impact measurement and management approach, including to address Government priorities in diversity, inclusion, anti-racism and Reconciliation and to assess contribution towards the Social Finance Fund’s target of a minimum of $100 million dedicated to investments in gender equality
• how you will track your contribution to the Government’s target of leveraging a minimum of $2 of private investment for every $1 of public contribution

Part 3: Past experience

Section A. Experience in investment management

Question 43. Experience in investment management

Answer must be no longer than 7 pages.

Please demonstrate that your organization has managed an investment portfolio of a size and/or scope that has prepared it adequately for the proposed investment strategy. This could include:

• size, in terms of assets under management
• scope, in terms of the investment strategy. Aspects of scope that may be considered include (but are not limited to) an impact-oriented investment strategy, investments in social purpose organizations, gender or social equity lens investments, or investment strategy targeting multiple sectors, asset classes, or regions

In your response, please provide an overview of:

• your organization’s past or current portfolio(s). In case of several portfolios, please provide this information for a maximum of 3 example portfolios that best align with the size and scope of a social finance wholesaler as per this EOI. Please provide information on:
  • key portfolio details including:
    • total fund size, geographic scope (indicate if the fund was located in Canada or elsewhere), year of inception and lifespan
    • information on investments including number, size of investments, type, location, sector, structure of investment)
    • description of investment screening criteria and selection process
    • average holding period and portfolio turnover
    • exit strategies
    • key performance indicators, both financial and non-financial
    • overall risk profile and mitigation strategy
  • principle objective(s) of the portfolio(s), whether financial return or an impact-oriented objective, and overall investment strategy. If you applied any framework(s) to evaluate social or environmental impact objectives for prospective and existing investments, please explain how they were factored into decision-making processes
  • realized rates of return, including comparisons benchmarked to market opportunities with similar risk-adjusted returns
  • if your organization has invested in social purpose organizations, social finance projects, or other social finance vehicles, please describe your investments, including but not limited to:
    • current and/or historical investments by asset class, sector, and region, as it specifically relates to social finance
    • sum dollar value of your current investments in social purpose organizations, impact investment vehicles, and/or social finance vehicle, and
    • a sample list of names of social purpose organizations investment recipients (if not confidential)
• your organization’s investment governance processes as applied to the above portfolio(s). Please provide information on your:
  • investment committee(s)
  • investment decision-making processes and timelines
  • investment due-diligence processes and timelines
  • standard investment criteria and screening processes
  • portfolio management framework used to monitor current holdings, and
  • general investment horizon and post-mortem evaluation of investment strategies and outcomes
• the risks and challenges that your organization typically encounters during the investment lifecycle, and how the aforementioned risks and challenges differ by asset class, sector, and region, and the specific risk mitigation strategies that have been employed
• a brief overview of your organization’s track record in raising capital (public-or private-sourced). This could include:
  • a summary of the capital raised including the nature of asset classes and types of investors
  • a description of the capital raising approach, and
  • a description of significant investors and investor relationship strategies

Section B. Experience with Canada’s social purpose sector

Question 44. Experience with Canada’s social purpose sector

Answer must be no longer than 2 pages.

Please demonstrate that your organization has existing networks and experience operating within the social finance market and broader social purpose sector in Canada. This may include, but is not limited to, experience with social finance intermediaries, social purpose organizations (including those led by or serving equity-deserving groups), Indigenous organizations, and the Quebec social economy ecosystem.

Please explain how you meet this criteria. In your response, please provide information on:

• the nature of your experience, such as participation in sectoral networks, grant-making, provision of advisory services, research, other partnerships or lived experience
• where applicable, please indicate how this experience will be used to support the delivery of your proposed investment strategy and application of a social equity lens

(Optional) If you propose to operate in Quebec, please include specific identification of your experience in its social economy ecosystem.

Part 4: Operational information

Section A. Human resources

Question 45. Human resources

Answer must be no longer than 2 pages.

Provide a brief description of the human resources required to deliver the initiative. As relevant, this should include information on:

• description of key management roles and high-level description of planned non-management roles
• the experience and qualifications of the proposed management team and members of advisory and/or investment committee(s), where identified:
  • experience and qualifications may relate to:
  • formal designation(s)
  • knowledge of the Canadian social finance market
  • experience raising and managing funds-of-funds
  • funds or other investment entities
  • impact measurement and management
  • social equity-based approaches

Provide an overview of planned staffing to fill key roles and address experience gaps, where applicable.

Section B. Financial model

Question 46. Financial model

Answer must be no longer than 5 pages.

Provide the following financial information:

• provide a financial model and high-level budget table relating to the planned investment strategy. This should include:  
  • the target fund size (minimum and maximum), including the Government of Canada’s contribution broken down by repayable and non-repayable contributions, as well as expected commitments from other investors
  • expected rate of returns and risk-adjusted returns (which can also be expressed in a range) by asset class, sector, and region, indicating how such returns compare against historical market benchmarks where possible
  • anticipated timelines of investments, returns, disbursements, and dispositions throughout the life cycle of the fund
  • an explanation of how much the proposed fund is expected to cost to operate
  • expected cash flows to and from the Government of Canada, including when they are expected
• a wiring diagram for the proposed fund that identifies:
  • financial flows and mechanics of the proposed vehicle, covering the Government of Canada’s contribution, private investors, social finance intermediaries and social purpose organizations
• an explanation of the proposed financial structure of the fund and the mechanics and terms of participation. This should cover the overall ownership structures and the organization’s proposed commitment of funds into the vehicle, as applicable
• an explanation of the proposed compensation structure of management fees and, if applicable, performance incentives. This should include the expected value and basis for annual management fees and anticipated timing to achieve performance targets and trigger payment of performance incentives, if applicable:
  • please describe how the proposed compensation structure would help align investment objectives and financial and non-financial returns between the Social Finance Fund and the proponent
  • note that performance incentives may be proposed where the proponent can provide a credible case that the incentive provided would lead to the achievement of a target financial return for the fund, or the achievement of one or more of the Social Finance Fund’s key outcomes (for example, leveraging private investment, or reaching a minimum of $100 million in gender equality investments). The proposed bonus should be at the minimum level necessary to achieve the given target
  • note that costs associated with the management of social finance investment activity (management fees) will be paid out of the repayable portion of funds. Costs associated with the administration of blended finance or other market building activities will be paid out of the non-repayable portion of funds. The proposed compensation structure should clearly indicate where costs are to be paid out of the repayable or non-repayable portion of funds

Part 5: Attestation

To be considered eligible, an official representative who has the authority to submit proposals on behalf of your organization must attest that they:

• have the authority to submit the application for funding on behalf of the applicant organization
• certify that the information provided in the application for funding and supporting documentation is true, accurate and complete, and
• have read the applicant guide and understood the program’s requirements

To do this, the official representative must provide their name, title(s), and the date.

If applying as part of a consortium, an official representative from each participating organization must provide their name, title(s), and the date. If there are more than 3 participating organizations, the attestation of official representatives from remaining organizations can be provided on a separate page.

No signature is required.

Supporting documents

In addition to your completed EOI form, please submit the following documents:

• a separate document may be provided to add information to sections of the application if your response exceeds the space allowable in the form, up to the maximum page count indicated in the applicant guide (with the portion in the form counting for one page). This document should specify the question number for each response. This document should include all wiring diagrams, figures, tables that cannot be included within the Expression of Interest form. Text should be 12 point font with normal margins
• audited financial statements for the 2 most recent years available
• copies of annual and quarterly financial reporting for the most recent year available
• letters of concurrence from partner organizations (if proposing a consortium arrangement)