The Wyatt Trust’s Catalytic Local Investment Fund (CLIF) invests in South Australian businesses that are doing good for both people and planet.
The million-dollar Fund is structure agnostic, meaning the organisation seeking investment could be a conventional business, a social enterprise or a not-for-profit.
The idea for the Fund came from a deep contemplation about impact by Wyatt CEO, Stacey Thomas.
“It was really about thinking creatively and exploring what the next iteration of impact looked like for Wyatt,” Stacey explains.
“I suspected it was some kind of loan program, and I was hearing a lot about localism over globalism, but it wasn’t until I listened to Katherine Trebeck speak about the wellbeing economy and the value of supporting local enterprise that I began to see a way we could bring all the threads together.”
Upon bringing the concept before the Board of Governors, the idea was greeted with strong interest, tempered by one question: ‘Why should we be the ones doing this?’ It was a valid question, Stacey says.
“It’s true that it is high risk compared to a lot of other investments, and it is expensive because we’re the ones sourcing the deals and doing all the due diligence; we're effectively the feet on the ground.
“But my response to the ‘why?’ was because we're the only ones resourced to do this. We are in a privileged position as a perpetual trust to be able to use funds as risk capital and support businesses that otherwise wouldn’t receive funding from commercial lenders. So, if not us, who?”
CLIF loans are unapologetically hyper local. Since the Fund’s launch in late 2024, $900,000 has been deployed across six local business deals with zero defaults to date.
“You can’t untangle people and planet,” Stacey says. “While there are some businesses doing wonderful things for people and others doing great things for the planet, they’re so inextricably linked that both need to be considered.”
The anti-pitch
Meeting business owners where they are is a key principle of the CLIF process. Each investment has started with a conversation and a relationship that builds from there.
“There is no formal application process or template,” explains Investment Specialist, Gavin Reid who dedicates two days a week to CLIF and Wyatt’s other investments.
For businesses used to tightly controlled application processes and investment pitches that focus on maximum profit, that can be a challenge to understand. Similarly, positioning an investment through a wellbeing economy lens that matches at least one of the four criteria (pre distribution, purpose, prevention, people powered) can also be a novel experience for business owners.
“The first part of developing the relationship is about understanding who they are, what their business looks like, what they’re trying to achieve and what they need,” Gavin says.
“Some of them aren’t ready for a loan, and in those cases we try and connect them with other groups that might be able to support them like SASEC (South Australian Social Enterprise Council), Collab4Good or Regen Labs.
“It’s typically a conversation, where we say, ‘You don't need to prepare anything special for us, just send us what you've already got, and we'll work through it together,” Gavin explains. “Then we’ll usually sit down and walk through the business plan and chat about the financials and the forecasts.”
“It's almost an anti-pitch,” Stacey adds. “The way we work is definitely relational, but we don't want to be in anyone's pocket. We're not saying, ‘We need monthly reports and a position on your board’; instead, we’re saying, ‘It’s your business; you go and run it how you need to.’”
Demand for support from CLIF has been strong, with conversations having taken place with 50 South Australian businesses to date. The average loan amount is $150,000 with the repayment period tailored for each investment.
With CLIF funds already 90 per cent subscribed, Gavin says the most rewarding part of the process is hearing and seeing the passion of the founders.
“It’s a privilege to be able to play a part in helping these business owners achieve their vision,” Gavin says. “The phone call to let them know their application has been successful is incredibly rewarding.”
With a review of the fund scheduled to take place later this year, there may yet be even more opportunities to broaden its horizons and impacts. But regardless of what lies ahead, Stacey is hopeful that it is model worthy of investigation by others to.
“My ultimate hope is that CLIF inspires others to consider using their capital to support local business, not for growth's sake, but for the sake of people and planet,” Stacey says.
This story features in The Wyatt Trust: Perspectives on Investing report.
Read about some of our CLIF investments:
A business for 500 years from now: Moonrise Seaweed Co.
