16 Sep Raven Indigenous Outcomes Fund
Raven Indigenous Outcomes Fund
Interview with Rebecca Waterhouse; Principal of Raven Indigenous Outcomes Fund
Jen: How was “Raven Indigenous Outcomes Fund” Created?
Rebecca: The Fund was conceived of by Jeff Cyr and the leadership team at the Raven Indigenous Impact Foundation in response to Raven’s success in fund management, our unique role as the sole Indigenous financial intermediary on Turtle Island (North America), realizations in increased internal capacity, prospective model replicability, sheer capital pooling and learning opportunities, and ultimately, market readiness of investors, payers and Indigenous communities and service providers.
Jen: How are your investment funds catalytic in a way that is different from other funds?
Rebecca: At this stage of the application, the committee will have gleaned that the RIOF is the definition of a non-traditional financial vehicle. Three of the defining and differentiating characteristics of this fund are:
- Indigenenity: The Community Driven Outcomes Contract (CDOC) model is an Indigenous outcomes
finance approach championed by Raven, informed by Indigenous epistemology, values and traditions, the
intent is to represent and serve for the upliftment of Indigenous Peoples. While the CDOC model
leverages the core aspects of traditional pay for performance and social impact bond structures, its
primary driver is community need and voice versus that of government demand which defines most
traditional approaches. 
- Blended finance: Outcomes Finance necessitates the participation of three types of financial capital:
private (investor) capital, public (payer) capital and philanthropic capital, enabling the critical relationship
and capacity building with all involved stakeholders. The RIOF invites the participation of these forms of
financial capital and it unlocks all other forms of capital, inclusive of human, social, political, relational,
etc., as partners join in and share resources in support of a social and environmental mission.
- Ownership structure: The Raven Indigenous Impact Foundation (RIIF) is the majority owner of the
General Partner (Raven Indigenous Outcomes GP Inc), rather than it being Raven Indigenous Capital
Partners. This strategic structure represents the social and philanthropic nature of the fund while
offering governance benefits and capacity to the foundation.
Jen: How do you describe the kind of non-financial returns the fund offers?
Rebecca: Social, environmental and sub-market financial returns are the focus of the Outcomes Fund, this is inclusive of increased well-being (minobimadzowiin), Indigenous energy sovereignty, reduced GHG emissions, climate change adaptation, increased productivity via training and employment opportunities, and increased individual, family and community health outcomes.
Jen: Can you describe how you use integrated capital to do your work?
Rebecca: The RIOF is a true blended finance fund where philanthropic capital plays a key role in the investment strategy and the development of effective interventions financed via outcomes contracts. There will be zero GP commit for this Fund as 50% of the carry interest points will return to Raven Indigenous Impact Foundation to continue the development and capacity building essential to the model. It’s a unique and critical component of the Fund’s blended finance structure.
Raven builds and deploys Indigenous Solutions Lab processes that take communities, subject matter experts, grantors, outcomes buyers and investors through a design to execution process leading to comprehensive solutions and rigorous business cases that can be brought to market. Altogether, we need to leverage intellectual capital from a collective of disparate actors and undertake a landscape assessment and take stock of all available assets, inclusive of natural, human, political and working capital available.
Jen: How do you address racial justice, income inequality, and/or gender justice through your products and services?
Rebecca: The CDOC model is predicated upon community need and participation. Indigenous communities come to Raven to consider the use of Outcomes Finance as a solutions pathway. Our mission is to create financial tools to empower Indigenous Peoples to address complex community-identified issues. Within this, we prioritize having Indigenous Peoples and communities at the center of the process to co-create solutions, supported within an ecosystem of diverse multi-sectoral partners that collaboratively drive community-desired outcomes forward.
As an Indigenous organization, we are guided by Indigenous values and teachings in everything we do. We follow our traditional protocols; we work in a good way for the well-being of our Peoples and the planet; and we acknowledge our responsibility to the next seven generations. We use an intersectional and holistic approach, recognizing the context in which our organization and our work are situated. More specifically, working in the field of social finance in Canada, we believe it is essential to understand the truth of our shared history and how it plays a role in the work we undertake today. Since the first arrival of settlers to Turtle Island, colonial governments across North America have intentionally promoted discriminatory laws and practices against Indigenous Peoples, inflicting continued traumas upon Indigenous communities and lands. Colonization has had devastating intergenerational consequences, creating the numerous social, health, economic, and environmental inequities that continue to affect Indigenous lives today. But despite this grim past, Indigenous Peoples have demonstrated unparalleled resilience across generations, holding tight to their cultures, languages, and traditional wisdom.
In fact, we are now witnessing a significant Indigenous resurgence movement across Canada, with youth and emerging leaders writing a new strength-based narrative for themselves and their communities in the 21st century. It is with this context in mind that we approach our work and the creation of the Outcomes Fund. To date, financial systems, institutions, and tools have not been created by or for Indigenous Peoples. They do not respond to the uniqueness of our communities, nor do they solve the complex challenges we face. As a response to this gap in the financial landscape, we are creating the Outcomes Fund as an innovative financial tool to respond to community needs and voice. Grounded in the deep respect for Indigenous identity, culture, history, and future generations, we are pushing back against traditional financial models that have left us behind. The Outcomes Fund is representative of a paradigm shift – away from a scarcity mindset that has been used to hurt and instill fear and towards a goal of wellness that will heal.. Rather than money limiting communities, we will use it as medicine. The aim of which is to bolster the sovereignty and self -determination of all Indigenous Peoples in the design and ownership of interventions that will improve and save lives while caring for Mother Earth.
Jen: Can you share with us an example of an investment?
Rebecca: The Sioux Valley Dakota Nation (SVDN), located in the province of Manitoba CA, has engaged with Raven Indigenous Outcomes Funds (RIOF) and AKI Energy with the aim of financing the installation of geothermal heat pump systems, alongside additive housing retrofits, in 25 homes on reserve. In addition to the installation of these energy efficiency improvements, this project will provide First Nation community members with technical training and employment opportunities to install the aforementioned home climate enhancements, providing the community with valuable skills while simultaneously boosting local employment opportunities. Additional target outcomes include reduced utility bills, energy savings, GHG avoidance, and improved housing stock. The outcomes purchasers include Canada Mortgage Housing Corporation and Efficiency Manitoba.
Jen: What do you tell people who think your fund is risky?
Rebecca: Risk of inaction or non-execution; the primary risk of not addressing systemic barriers to well being in Indigenous communities and in climate change. Without the RIOF, communities may not have the means nor flexibility to adapt program funding in service of desired interventions to achieve improved health and climate outcomes.
Investment Thesis/What is your rationale for your approach to investing?
The Raven Indigenous Outcomes Fund (“RIOF”) is a first-of-its-kind Fund designed to facilitate an infusion of dedicated, generative capital in service of Indigenous communities across Turtle Island. The aim is to catalyze the development of Indigenous determined and owned outcomes-based approaches to Indigenous service delivery in the areas of climate and health wellness. Raven is regarded as the leading Indigenous social finance intermediary with an evolving track record of success. This Outcomes Fund will leverage a window of opportunity found in the wider Indigenous resurgence movement, by actioning the commitments surrounding the Truth and Reconciliation Commission and offering a vehicle to operationalize the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and both National and Provincial Indigenous procurement objectives as well as sustained recommendations from the Social Finance Social Innovation Taskforce regarding the creation of a National Outcomes Fund.
Geography: Canada
Year Founded: 2023
# of Investments: 6-8
# of Investors: 12
Funds Raised: 20,400,000 since inception
What’s on Rebecca’s Mind?
Book: The Spirit Level ‘Why Greater Equality Makes Societies Stronger’– Richard Wilkinson & Kate Pickett
Song: Breakers Roar – Sturgill Simpson
Podcast: CANADALAND