New capital investment fund launched for CMEs

30 October 2016

Earlier this month, at the Quebec International Summit of Cooperatives, mutuals ability to raise finance and the impact of regulation in the wake of the financial crisis. Mutual banks across the world argue regulators failed to take mutuals into account when drawing up new rules.

In light of this, Mutuo, the UK’s peak body for co-operative and mutual enterprises (CMEs), launched a new capital investment fund for the sector. The Mutual of Mutual and Cooperative Capital (MoMaCC) seeks to address the issue of capital raising in co-operatives and mutuals by facilitating businesses to cross-invest and raise capital for growth within an entity that they own.

The project comes after a year of close collaboration with our partners, mutual insurance fund managers, Charles Taylor PLC.

Speaking at the Summit, Mutuo Managing Partner Peter Hunt said:

“MoMaCC would facilitate investments around the world, so for example an Australian co-operative could invest in a Canadian mutual across different sectors. This will create a virtuous circle of investments within the co-operative and mutual sector.”

Currently, the two organisations are in discussions with a small number of mutuals and co-operatives to become the founding members of MoMaCC, which will join the initial board of the mutual, controlling key decisions including quality control of membership, investment criteria and areas of operation.