Post on 12-Jan-2015
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SOCIAL INVESTMENT FORUM
socialenterprise.org.uk/social-investment-forum
DID YOU KNOW?
Social enterprises employ more people relative to turnover than
mainstream SMEs
What is social investment?
Social investment, also known as impact
investment, is the provision and use of capital to generate
social as well as financial returns.
WHAT?Debt
EquityQuasi-Equity
WHY?Invest in an acquisitionWorking capitalDevelopment capitalReserve capital
Social Investment Market Structure
Individuals and communities throughout the UK
Social sector improving people’s lives, strengthening communities and contributing to economic growth
Social investment finance intermediaries
social banks | non-bank social investors | service providers
Providing loan, equity and quasi-equity financeProviding business and investment readiness
advice and support to the social sectorStructuring and brokering investment for the social
sector
High street banks
Mainstream banking services
Trusts | Foundations |
CSR | Philanthropists
Grant makers
Big Society CapitalWholesaler providing investment to social
investment finance intermediaries
Mainstream financial investors
Investment banks | Pension funds | Endowments
Trusts and Foundations
Endowments
Social investment demand and growth rate by sector
SOURCE | The First Billion, Big Society Capital and Boston Consulting Group, September 2012
Hamelin Trust | CAN Invest£120,000 loan over 2 years
Restructure to become more efficient and improve its services including a resource centre,
supported accommodation, and outreach services within homes to the more than 200
disabled children and adults.
CASE STUDY
DID YOU KNOW?
Social enterprises are starting up at more than three times the proportion of start ups among mainstream small businesses
CASE STUDY
Beyond Youth |UnLtd Big Venture Challenge
Beyond Youth view offending as an addiction and address the emotional cause of offending
through therapeutic interventions. The Deal
£50,000 UnLtd | £50,000 from Venturesome
ImpactRe-offending rates for people on the Beyond
Youth programme is 23% - a third of the national average.
CASE STUDYCool2Care |CAN Invest | CAF
Venturesome | Big Issue Invest
Provide personal assistant care to disabled children and their families across the country.
About the Deal Blended form of debt and philanthropy grant over 3
years to expand services Big Issue Invest (£200,000 of structured debt) |
Venturesome (£150,000 debt) | CAN Invest (£150,000 of venture philanthropy-backed grant).
Impact Less than one in 10 families with disabled children
receives care from their Local Authority. The investment will support services to a further 5,000 families.
International Development Enterprises UK | CAF Venturesome
£160,000 loan over 1 yearBridging loan for a project in Ethiopia that uses
micro-irrigation technology to bring measureable improvement to the food security of 6,600 rural
households.
C A S E S T U D Y
DID YOU KNOW?
Social enterprises are three times as likely to be based in deprived
areas as traditional business
CASE STUDY
PURE The Clean Planet Trust |Big Society Capital
Providing small, low interest loans to communities to meet the costs of
installing renewable energy equipment.The Deal
£1,000,000 loan to PURE to support all technologies eligible for the Feed-In-Tariff or Renewable Heat Incentive.
PURE will normally lend up to 50% of project costs to a maximum of £50,000.
CASE STUDY
Investing for Good | Big Society Capital
Pioneered the charity bond programme in the UK. The bonds are placed with institutional
investors, public foundations, private trusts and individuals who are attracted by the blend of
financial and social impact returns.The Deal
£875,000 secured loan to enable Investing for Good to underwrite the issuance of a fixed
income bond in order to build the market for further issuance by charities and social
enterprises.
CASE STUDY
SpaceHive |UnLtd Big Venture Challenge
A crowdfunding platform that helps raise funds locally for projects such as a community garden, skate park, or
playground and leverage in sponsorship partners. It makes the planning process
transparent and easy to navigate putting communities in the driving seat of
neighbourhood planning. The Deal
£162,000 in equity from 3 angel investors
DID YOU KNOW?
Social enterprises are increasing their contribution to the UK
economyMedian annual turnover of social
enterprises has grown from £175,000 in the 2009 to £240,000
in 2011
CASE STUDY
Social Stock Exchange |Big Society Capital
A regulated platform for investors to invest in social purpose businesses – an essential part of the market infrastructure that connects socially motivated investors with organisations in need of capital. It will list and facilitate the trading of
securities in businesses that address social challenges The Deal
£850,000 from Big Society Capital | £1.35m from Panahpur and the Joseph Rowntree
Charitable Trust
Burton Street Foundation| The Social Investment Business
£560,000 loan and £715,000 grant package£1.5m refurbishment of their Victorian
property which now houses over 50 charities and services.
C A S E S T U D Y
CASE STUDY
Social AdVentures |The Social Investment Business | Local
Partnership
Spin-out from NHS Salford offering well-being services to the city’s most hard to reach groups including elderly people with learning difficulties, asylum seekers and
refugees, drug and alcohol users and people suffering from mental health issues.
The Deal£35,000 loan and £75,000 grant from the DH Social
Enterprise Investment Fund.Impact
66% owned by staff and service users and 260% increase in income. 40% of their income is from outside the NHS.
C A S E S T U DY
HCT Group | The Social Investment Business
£3m loan from Futurebuilders EnglandFrom a handful of volunteers HCT now
turnover £26m with a fleet of 370 vehicles.
DID YOU KNOW?
Social enterprises are outstripping SMEs for growth 58% of social enterprises grew last year compared to 28% of
SMEs
What this Government has done for social investment
Increase the supply of finance for social investment
Big Society Capital | Business Finance Partnership
Stimulating and supporting demand for social investment
Investment and Contract Readiness Fund | Social Incubator Fund | Community Shares Unit
Improving the legal, tax and regulatory environment
HMT review on financial barriers to social investment | Red Tape Challenge on social investment
SOCIAL INVESTMENT FORUM
socialenterprise.org.uk/social-investment-forum