In our Twentieth Anniversary Book published as part of our twentieth anniversary celebrations this year, we shared the stories of the many people and organisations that have been part of our journey since 2002.
Daniela Barone Soares, CEO of Snowball, explained how she first came across Resonance and how the relationship developed and Snowball invested in Resonance funds.
Best kept secret in the impact world
I was introduced to Daniel by a friend back in 2014, who told me Resonance was the best kept secret in the impact world. This is no longer the case; thankfully more and more investors are finding out about Resonance’s work. At that time, I had been working in the impact arena for ten years. Impact was still a niche and Daniel immediately impressed me as a doggedly determined entrepreneur, who saw impact not as “cool” but as incredibly serious business. I left with the strong impression that I had met someone who could scale impact solutions with quality, integrity and robustness.
I joined Snowball, an impact investing fund, in 2019, as it offered a systemic solution for a healthy, prosperous and peaceful future for this planet. By then, Snowball was already an investor in Resonance, and currently we have four Resonance managed funds in our portfolio. We most recently invested in the Resonance and Patron Capital Women in Safe Homes fund, as we view Resonance as one of the leading impact managers in the UK. It has a track record of purchasing property at scale, and working with those at the frontline of homelessness services to provide the right solution to those affected by homelessness. Resonance creates change by focusing on achieving specific impacts through their in-depth expertise in investing in homelessness, poverty and community asset building.
Our story working with Resonance
As background, Snowball allows investors access to a wide range of subject area experts like Resonance and others, which combined, create a portfolio of over 400 mission-led companies, focusing on some of the most pressing social and environmental issues we face. Curating, monitoring and actively engaging with such a diverse portfolio is something most investors wouldn’t be able to do. We identify leading businesses that bring innovation, solutions and catalytic opportunities in two interconnected themes: social equity and environmental sustainability. We actively manage these investments and report back to our investors on their impact and financial performance. As we expand our investor base, we are able to increase the amount of capital reaching the high impact social enterprises in the Resonance portfolio.
“When I first met Daniel back in 2014, Resonance was one of the best kept secrets in impact investing. Thankfully this is no longer the case: they are now one of the best-known successful examples of an impact driven investment approach that combines high impact with a risk adjusted return for investors.”
The impact Resonance creates
It is hard to quantify the numbers of people experiencing homelessness, but we know from resources like The Homelessness Monitor that rough sleeping levels in England have increased by 132% since 2010. In the immediate term, impact investing increases the amount of capital directed into systemic solutions for this complex problem. Longer term, we believe that this type of investing actually changes the way we think about investing altogether. It is an activity that has a real-world effect; we think how we invest is about contributing to the type of future we want.
Resonance continues to launch new and innovative impact funds to address gaps in service for underserved communities, but beyond its funds, Resonance is committed to field building and systems change and works proactively with partners to achieve this – for example, it has run workshops for existing stakeholders to improve strategies for tenant move-on and is exploring a technology solution which could benefit tenant progression.
The future of impact investing and Resonance
Currently, only 1% of global assets under management are invested into impact (as distinct from ESG investing). People living the daily reality of inequality – like people who experience homelessness – need this amount to increase, and rapidly. In the twenty years that Resonance has operated, many of the barriers that existed to impact investing becoming more mainstream, have been addressed. Talking to investors, we know that demand from them to connect their money with entrepreneurial solutions that make the world better is high. The next generation is pushing for that change even faster: younger people are moving their careers and money into creating a socially equitable and just future.
We need to think systemically about this change however. This progress to advance impact investment is good, but what we need is wholesale change in the way that financial markets and investments operate. In the future, all money should be invested to create financial returns and positive impact for society and our planet. People should no longer have to choose between securing their own and our collective future.
The Resonance Homelessness Property Funds have been early examples proving it is possible to achieve high impact with a risk-adjusted return for investors. As more and more mainstream investors see these results, we will accelerate the wider transformation of finance that we need in order to secure fair and sustainable life on this planet.
Source: 14. Cabinet Office - Social Enterprise Market Trends 2016
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Resonance Limited is a company registered in England and Wales no. 04418625
Resonance Impact Investment Limited, a subsidiary of Resonance Limited, is authorized and regulated by the Financial Conduct Authority (FCA). Firm number 588462.
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