The new government-backed impact fund will back businesses that deliver good jobs and equity ownership for indigenous Australians, reports the Australian Financial Review.
The agency will invest roughly $10 million in each business, which must include equity ownership from Aboriginal and Torres Strait Islanders or seek to develop indigenous lands.
The indigenous partners will buy out IBA’s stakes over seven to 10 years, giving the fund a return of 4.5% above inflation. Last year, IBA exited its Cicada luxury lodge investment in Nitmiluk National Park.
This year, IBA exited Consolidated Manufacturing Enterprises, a pet food manufacturer, to Real Pet Food Co., backed by Quadrant Private Equity. “We want to stimulate investment into the indigenous sector,” said IBA’s Rajiv Viswanathan.
The fund will target tourism, healthcare, energy, civil construction and affordable housing.