Our Approach

Finance is a means to an end, not an end in itself. This belief is central to our impact investing practice.

Social and environmental issues are complex and can be addressed in multiple and complementary ways. The Foundation has at its disposal an array of tools to support solutions: funding, convening and engaging, investing and more. Finance—through investing—is just one of many options. Our interventions are therefore designed around the following core principles:

  • Problem-driven: When considering an investment, we ask ourselves the following questions: What social and/or environmental problem is it trying to solve? What are the dynamics at play behind it? How does it impact the various stakeholders involved?
  • “The need, the need, the need”: Before we opt for one tool over another, or for a mix of different tools, we identify the needs of those involved in delivering a solution.
  • Demand-driven (vs. supply-driven) and responsive: We never invest for the sake of investing. One of our priorities is to remain flexible, adapting our intervention as both the problem we are trying to address and our partners’ needs evolve. We are committed to experimentation and learning.
  • Facilitating participation from longstanding partners and unlikely allies: A financial transaction is always connected to a broader set of relationships and interventions. That is why we favour consultation and collaboration when designing a project and make sure to involve stakeholders who might otherwise remain at the margins or work in isolation.

Our approach to impact investing aims to tailor interventions to the problem and to increase the range and diversity of people with access to capital.

Our impact investments take inspiration from a vast array of proven financial instruments and innovative impact investing business models. When we design a transaction, we build on existing models and we also innovate. To do so, we take advantage of our ability as a foundation to use both funding and investments at the same time. We can do this during the demonstration or transition phase of a project by piloting a new financial instrument or by scaling a financial model that has had success in one geographic area to have an impact further afield.

By accepting below-market rates of return, or by offering patient capital, thereby delaying the usual expected return, we can achieve long-term impact. We invite every sector and every stakeholder to participate—entrepreneurs, social en­terprises, foundations, governments, financial institutions, small businesses and corporations.

Investing for impact means working with aligned stakeholders to agree on a specific purpose of an investment with respect to the social and/or environmental impact it aims to achieve. It means assessing impact risk in addition to financial risk and optimizing both financial and impact returns and rewards.

Our experience so far tells us that there are two essential elements to effective impact investing:

  • A defined purpose among aligned stakeholders: While we are fully aware that a goal and intended outcomes of transactions can evolve over time, we discuss, clarify and agree upon them from the outset. We make sure that expectations are clear, that we embed accountability into our monitoring, and that incentives are aligned in our agreements. Transparency and accountability is multi-directional among participating parties, including the Foundation.
  • Monitoring for both financial and impact risk and return: We always consider and monitor the impact risks and returns, along with the financial risk and return. This holistic approach is important to clarify and to facilitate decision-making, especially when trade-offs exist.

We are particularly interested in mobilizing resources and testing new financial models in the Foundation's focus areas.

We are making a conscious effort to explore impact investment opportunities that accelerate and amplify the impact of our funding. Examples include impact investments in a fund that supports renewable energy projects, exploring the creation of a civic assets fund, collaborating with other foundations to establish a loan guarantee fund for social enterprises, and working with the government and First Nations to launch an Aboriginal Housing Fund. Read our annual Impact Investing Reports to learn more.

Current MRIs

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InvestEco: Sustainable Food Fund Trust

This fund focuses on investing in small- to medium-sized expansion-stage private companies that are promoting sustainable solutions in food and agriculture in the North American Market.

Investment:

$1 million

Private Equity

Real Ventures: Real Investment Fund III

Real Ventures is an investment platform that supports the entrepreneur-led start-up ecosystem in Montreal. The venture capital Fund invests in early stage companies that embrace the technological opportunity of artificial

Real Ventures is an investment platform that supports the entrepreneur-led start-up ecosystem in Montreal. The venture capital Fund invests in early stage companies that embrace the technological opportunity of artificial intelligence to disrupt existing industries and business models.

Investment:

$5 million

Private Equity

Renewal Funds: Renewal2 Social Investment Fund

This fund invests in expansion-phase companies at the forefront of social and environmental innovation in the North American market.

Investment:

$2,062,280

Private Equity

Renewal Funds: Renewal3 Trust

This fund invests in expansion-phase companies at the forefront of social and environmental innovation in the North American market.

Investment:

$3 million

Private Equity

Greensoil Building Innovation Fund

This fund invests in extension-phase companies that provide products, services and technologies that make the design, building or operations of real estate and related infrastructure more energy efficient. Investment: $2,000,000 Private

This fund invests in extension-phase companies that provide products, services and technologies that make the design, building or operations of real estate and related infrastructure more energy efficient.

Investment:

$2,000,000

Private Equity

MaRS Catalyst Fund: MaRS Catalyst Limited Partnership

The Fund provides funding and support to Canadian companies pursuing social and environmental outcomes with business models that are scalable.

Investment:

$500,000

Private Equity

BlackRock Global Renewable Power Fund II

The fund invests a portfolio of renewable power assets, primarily focused on wind and solar in OECD countries. It is an opportunity to participate in the transition to a lower

The fund invests a portfolio of renewable power assets, primarily focused on wind and solar in OECD countries. It is an opportunity to participate in the transition to a lower carbon economy.

Investment:

$10 Million

Infastructure

Area One Farms Fund III

Area One Farms operates private equity funds in the Canadian farmland sector. They partner with established farm operators to acquire off-market farmland, enabling family farms to expand and improve their

Area One Farms operates private equity funds in the Canadian farmland sector. They partner with established farm operators to acquire off-market farmland, enabling family farms to expand and improve their financial returns while incorporating sustainable practices.

Investment:

$5 million

Private Equity

MKB Partners Fund

MacKinnon, Bennett & Co. is a Montreal-based merchant bank, that structures and manages private investments in the clean technology market. The Fund invests in growth-stage companies in the renewable energy,

MacKinnon, Bennett & Co. is a Montreal-based merchant bank, that structures and manages private investments in the clean technology market. The Fund invests in growth-stage companies in the renewable energy, urban infrastructure, and transportation-related sectors.

Investment:

$4 million

Private Equity

Cycle Capital Fund IV

Cycle Capital is a Private Equity firm financing entrepreneurs with sustainable technology innovations. The Fund invests in commercialization-stage clean technology ventures in the North American market.

Investment:

$5 million

Private Equity

Logo for Jonathan Rose Companies

Jonathan Rose – Rose Affordable Housing Preservation Fund V

The Rose Affordable Housing Fund intends to acquire, transform and actively manage affordable, mixed-income and workforce multi-family housing in high-demand, transit-oriented locations in the USA.

Investment:

$15 million USD

Private Equity

Stonebridge Infrastructure Debt Fund logo

Stonebridge Financial – Infrastructure Debt Fund II

By developing renewable energy projects and infrastructure across Canada, often investing in partnership with Indigenous communities, Stonebridge’s investments support more resilient

By developing renewable energy projects and infrastructure across Canada, often investing in partnership with Indigenous communities, Stonebridge’s investments support more resilient and lower-carbon communities. 

Investment:

$15 million

Private Debt

Bridges Fund Management logo

Bridges Fund V

Bridges is one of the first fund managers in the world to launch an impact investing fund. The Fund invests in the real estate sector by focusing on

Bridges is one of the first fund managers in the world to launch an impact investing fund. The Fund invests in the real estate sector by focusing on niche markets with high development potential through direct management of corporate assets or joint venture partnerships. 

 

Investment:

$15 million

Private Equity

Real Ventures logo

Real Ventures - Real Investment Fund III L.P.

Real Ventures is an early-stage venture firm focused on building the Canadian startup ecosystem.  They provide stage-specific guidance, mentorship, and access to networks and resources to fast-track founders’

Real Ventures is an early-stage venture firm focused on building the Canadian startup ecosystem.  They provide stage-specific guidance, mentorship, and access to networks and resources to fast-track founders’ personal and company growth. 

 

Investment:

$5 million

Private Equity

Amplify Capital Logo

Amplify Capital II LP

Amplify Capital II invests in early-stage, impact focused companies that advance UN Sustainable Development Goals and that have a B

Amplify Capital II invests in early-stage, impact focused companies that advance UN Sustainable Development Goals and that have a B Corp rating for best practices in environmental, social and governance standards. 

 

Investment:

$5 million

Private Equity

Current PRIs

CFFAC: Community Forward Fund

This fund supports non-profits and charities by providing loans and financing that would otherwise be unavailable to small- and medium-sized organizations.

Investment:

$2 million

Shares in an Evergreen loan fund

Équiterre: Maison du développement durable

This loan guarantee was issued to leverage financing for the organization’s demonstration green building, the first new construction to receive LEED Platinum Certification in Quebec, aiming to inspire everyone from

This loan guarantee was issued to leverage financing for the organization’s demonstration green building, the first new construction to receive LEED Platinum Certification in Quebec, aiming to inspire everyone from property developers to the general public.

Investment:

$3,095,000

Loan Guarantee

New Market Funds: Rental Housing Fund 1 LP

This fund will support non-profit partners with equity capital to address the critical community need for affordable rental housing, initially, in the Greater Vancouver Area.

Investment:

$2 million

Private Equity

Batir son quartier: Fonds Investissement Montreal IV

This debt fund allows housing cooperatives and non-profits to buy buildings and perform necessary renovations to create healthy, safe, and affordable housing for people and families in urban areas. Investment:

This debt fund allows housing cooperatives and non-profits to buy buildings and perform necessary renovations to create healthy, safe, and affordable housing for people and families in urban areas.

Investment:

$1 million

Private Debt

New Market Funds Society

The New Market Funds Society is a charity with the mission of improving efficiency and effectiveness of charities by developing impact investing products across Canada.

Investment:

$269,000

Recoverable Grant

Fiducie - Affordable Student Housing Loan Fund I

Fiducie manages financial tools for the Chantier de l’Economie Sociale. This fund provides debt to student housing co-operatives and not-for-profits to build and operate affordable student housing. Investment: $2 million Private

Fiducie manages financial tools for the Chantier de l’Economie Sociale. This fund provides debt to student housing co-operatives and not-for-profits to build and operate affordable student housing.

Investment:

$2 million

Private Debt

La Caisse d'Économie Solidaire Desjardins - Loan Guarantee Fund

La Caisse d’Économie Solidaire Desjardins is a financial institution dedicated to non-profits, unions, and social enterprises in Quebec. This loan guarantee program allows the Caisse to provide credit to community

La Caisse d’Économie Solidaire Desjardins is a financial institution dedicated to non-profits, unions, and social enterprises in Quebec. This loan guarantee program allows the Caisse to provide credit to community sector organizations at lower borrowing rates.

Investment:

$5 million

Direct Loan Guarantee

Fiducie - Recapitalization Housing Fund

Fiducie manages financial tools for the Chantier de l’Economie Sociale. This fund provides patient loans to not-for-profit and co-operative housing operators to repair and renovate affordable housing units. Investment: $1

Fiducie manages financial tools for the Chantier de l’Economie Sociale. This fund provides patient loans to not-for-profit and co-operative housing operators to repair and renovate affordable housing units.

Investment:

$1 million

Private Debt Fund

Windmill Microlending logo

Windmill Microlending – Community Bond

This Community Bond finances Windmill’s loan capital, enabling the organization to provide additional loans to skilled immigrants and refugees seeking to

This Community Bond finances Windmill’s loan capital, enabling the organization to provide additional loans to skilled immigrants and refugees seeking to continue their careers in Canada and achieve economic prosperity.

Investment:
$750,000

 

Private Debt

 

Raven Indigenous Capital Partners logo

Raven Indigenous Capital Partners – Raven Indigenous Impact Fund

The Fund seeks to revitalize the Indigenous economy in Canada by investing venture capital in early- and growth-stage Indigenous-led enterprises. The

The Fund seeks to revitalize the Indigenous economy in Canada by investing venture capital in early- and growth-stage Indigenous-led enterprises. The manager supports its investees with partnerships, business guidance, and network connections in addition to financial capital.

 

Investment:
$1 million

Private Equity

Windmill One Planet Living Real Estate Impact Fund Logo

Windmill One Planet Living Real Estate Impact Fund LP1

Windmill is a real estate company that invests in community assets such as libraries, theatres

Windmill is a real estate company that invests in community assets such as libraries, theatres and churches.  It controls and develops mixed-use development and renovation sites in Canada. 

 

Investment:
$10 million

Private Equity

Efficiency Capital logo

Efficiency Capital

Efficiency Capital offers full-service project management (from scoping to implementation and management) that increases energy efficiency in buildings. Over 20 years, Efficiency Capital forecasts that this work

Efficiency Capital offers full-service project management (from scoping to implementation and management) that increases energy efficiency in buildings. Over 20 years, Efficiency Capital forecasts that this work will help reduce carbon emissions by 300K tonnes.

 

Investment:
$250,000

Loan

Fair finance fund logo

Fair Finance Fund

The Fund supports social enterprises in the Ontario local food sector through loans, mentoring and training, enabling them to exist

The Fund supports social enterprises in the Ontario local food sector through loans, mentoring and training, enabling them to exist and grow.

Investment:
$250,000
Loan

Logo of Kaleidoscope social impact organization

Kaleidoscope Social Impact Fund

Kaleidoscope invests in social real-estate, offers loans for start-ups and business expansion, and other types of financing for individuals wishing

Kaleidoscope invests in social real-estate, offers loans for start-ups and business expansion, and other types of financing for individuals wishing to return to school or work, or those seeking to acquire affordable housing.

Investment:
$250,000
Loan

New Market Funds Logo

New Market Funds – Rental Housing Fund II

The Rental Housing Fund II supports permanent affordable rental housing development by acquiring newly constructed or renovated affordable rental housing

The Rental Housing Fund II supports permanent affordable rental housing development by acquiring newly constructed or renovated affordable rental housing developments, or by acquiring for-profit rental properties for conversion to non-profit, charitable, co-operative or government ownership.

Investment:
$2,000,000
Private Equity

Impacts and lessons

Indigenous Beading - hands threading white, red, yellow and silver beads.

Impact Investing Report 2021

Our third annual Impact Investing Report highlights the diversity of approaches with which impact investing managers are using capital to make extraordinary contributions to social and environmental transformation.

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People walking on a street in Montreal during a festival.

Impact Investing Report 2020

Our second Impact Investing Report provides an overview of our impact investing approach and an update on our efforts to align our investment strategy with our mission.

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The Montreal Biosphere in summer

McConnell Foundation Impact Investing Annual Report 2019

Our first annual Impact Investing Report provides an overview of the Foundation’s impact investing portfolio.

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Impact Investing Due Diligence Guide, Part 1

This guide on impact investing is based on the McConnell Foundation's internal due-diligence process and it offers a framework to assess impact and financial risk and return of potential investment [...]

Learn more