De Lochting ›

At a glance

De Lochting is a company active in the cultivation, processing and packaging of organic vegetables and in the ecological management of green zones. They focus on offering employment, personal development and inclusion to people who have difficulty accessing the regular economic circuit due to physical, mental or social limitations.

Investors

trividend finances and supports impact entrepreneurs with a vision to create social added value. De Lochting matched with trividend’s two main investment verticals: work integration and circular economy.

Funds for Good is a new kind of company based on a model of reasoned capitalism: Funds for Good IMPACT, active in the financing and support of social entrepreneurs or those in precarious situations, is financed by Funds for Good INVEST, creator of sustainable investment funds, which returns the profits it generates through this activity. ImpaktEU is a fund set up by Funds for Good.

Investment overview

Amount and instruments

• EUR 900,000 subordinated loan: 50% trividend and 50% Funds for Good.
• Disbursement in two tranches: EUR 600,000 in 2024 and EUR 300,000 in 2025.

Structure and terms

• The loan was chosen because De Lochting is a nonprofit organisation.
• trividend is part of the Board of Directors and provides strong follow-up.
• No management or structuring fees are being charged.

Target return and performance

• Interest rate of 7% on the loan, which is considered below market rate.
• Investment duration: 7 years with 2 years grace period + 5 years repayment.

Impact KPIs

• Jobs for people with a distance to the labour market.
• KPIs are validated through two dedicated follow-up meetings per year.

Catalytic role

By choosing to fund the non-profit with a subordinated loan, the investors accepted a higher risk than a conventional investor would. Furthermore, the fact that the investment happened when De Lochting was going through a hard time illustrates the risk that was taken. By supporting De Lochting financially and giving them room to focus on primary debt first, the impact investors help sustain the organisation’s activities in the long term.

The investors also provided non-financial support by taking on an advisory role free of charge to help solve the challenges De Lochting was facing, as well as to improve the organisation’s impact measurement and management practices.

Summary