Investment & Fund Management

The European Investment Fund (EIF), in collaboration with Epiqus, a fund manager focused on social impact investments, and the Finnish Ministry of Economic Affairs and Employment, launched a pioneering social impact bond scheme in Finland. This initiative, the first of its kind in Europe, aims to facilitate the integration of 2,500 to 3,700 migrants and refugees into the Finnish labor market through targeted training and job-matching assistance. The EIF committed EUR 10 million to this scheme, which is supported by the European Fund for Strategic Investments (EFSI), a key component of the European Commission's Investment Plan for Europe.

The scheme is designed to enhance efficiency in public spending and improve the delivery of social services by sharing risks between private and public investors. It operates on a payment-by-results model, where the Finnish Ministry of Economic Affairs and Employment acts as the commissioner, seeking to achieve specific social outcomes related to the employment of immigrants. Epiqus, as the intermediary, is responsible for managing the fund and ensuring that selected social enterprises deliver the desired results. This innovative approach not only aligns the interests of all stakeholders but also encourages the development of cost-effective solutions focused on achieving measurable social outcomes.

The initiative is expected to contribute significantly to social cohesion in Finland by providing immigrants with the necessary skills and support to integrate into society and the workforce. The success of this scheme could serve as a model for similar initiatives across Europe, demonstrating the potential of impact investment to address pressing social challenges.