13.09.2012
Big Society Capital – the world’s first social investment bank – today announced details of initial investment commitments totalling £37m since it was launched in April 2012.
Its investments back social finance intermediaries that directly fund social enterprises or infrastructure for the market. CEO Nick O’Donohoe (who is a speaker at CDFA’s forthcoming conference) said:
“Big Society Capital has made significant progress since our launch and we are on target to make investment commitments of around £50 million by the end of 2012. The quality of commitments made so far is encouraging and they reflect diversity of investment type and by geographic region in the UK.”
The announcement comes hot on the heels of two reports that paint an optimistic picture of social investment in the future and with news that The City of London Corporation will also be announcing its own £20 million social investment fund. The City of London Corporation Social Investment Fund (CoLCSIF) will make both direct and indirect investments. The fund has a principal focus on London- benefit but is also interested in opportunities across the UK and internationally.
The forthcoming CDFA Conference includes a session about “What can pioneering social investment models offer community finance?“. View the Conference programme
The City of London’s elected Policy Chairman Mark Boleat commented:
‘’The City of London Corporation see social investment as a vital way of financing the services delivered by charities and social enterprises. It can create better results and value for the public by unlocking the resources and skills of the financial sector. At the same time, this emerging investment category responds to an urgent question facing the City, which is how to put the word “service” back into Financial Services. The City of London Corporation will therefore be announcing details of its own £20 million investment allocation towards the social sector at the Guildhall on Thursday evening. It is hoped that the rest of 2012 will see other city institutions following suit.’’
Minister for Civil Society, Nick Hurd, said:
“We want to make it easier for charities and social enterprises to access capital so that they can do more. Britain is rightly recognised as a world leader in developing the social investment market, not least because of Big Society Capital. We want to build on that momentum by helping to create new investment opportunities.”
Big Society Capital investments so far:
- Results Fund: £10m to provide finance for social sector organisations competing for Government payment by results contracts (including through social impact bond structures)
- Impact Ventures UK Fund: £10m – a cross sector impact investing fund managed by LGT Venture Philanthropy in association with Berenberg Bank, providing growth capital to social enterprises in the UK
- Nesta Impact Investment Fund: £8m – UK fund providing early stage capital targeted to areas of Ageing Well, Learning and Employability of Children and Young People, and Sustainable Communities
- Community Land and Finance: £2.5m – loan fund providing secured loans to community land trusts to finance the building and purchase of affordable rental homes to local people. The homes are mainly in rural areas that are underserved by housing associations and social housing
- The Licence Fund/Franchising Works: £1m – loan fund to enable long-term, unemployed people to purchase and operate franchise licences in Manchester and Newcastle
- PURE: £1m – loan fund to finance small, community owned renewable energy projects in disadvantaged communities. The excess revenues generated will be used to deliver social impact within the local community
- ClearlySo: £1m – a staged investment in key social investment market infrastructure. ClearlySo provides capital raising services for social enterprises and social impact investment funds
- Social Investment Market CIC: £875k – a secured loan from BSC to enable the CIC to underwrite the issuance of a fixed income bond to build the marked for further such bonds by charities and social enterprises
- Social Stock Exchange: £850k – a key piece of market infrastructure, SSE aims to become the world’s first dedicated, regulated investmen platform and exchange for social businesses
- Community Generation Fund/Finance South East: £750k – loan fund that will lend to disadvantaged communities to enable them to finance community owned renewable energy infrastructure. Again, excess returns will be recycled into local social initiatives
- Triodos New Horizons: £450k – Social Impact Bond to finance programmes supporting young people moving from Key Stages 3 and 4 (including those currently in the care system, young offenders and those with learning difficulties) and those Not in Employment, Education or Training (NEETs) in Merseyside
- ThinkForward Social Impact/Private Equity Foundation: £450k – Social Impact Bond to finance intensive school-based support programmes designed to prevent young people from becoming Not in Employment, Education or Training (NEETs), in Tower Hamlets, London