overview

• outcomes-focused investment priorities.

• investing over 3 years (2008 – 2011) and beyond.

• a fundamentally different approach to previous grant regimes.

• investments tailored to individual organisations requirements.

• loans, ‘patient’ capital, and strategic investments.

A new £30m fund being subscribed over three years to invest in building the capacity, capabilities and sustainability of third sector organisations.

target characteristics

• have been operating successfully, partly through income generation, for at least three years.

• have established successful experience in public service delivery or trading in other markets.

• have potential to grow their turnover and/or become financially sustainable.

• are ‘investment-ready’ in terms of management, governance and financial position.

established third sector organisations located and trading in Scotland which reinvest surpluses for social or environmental purposes and:-

ineligible

• organisations with no track record of generating income other than grants.

• organisations that are insolvent or at risk of insolvency.

• proposals that seek to replace existing debt finance.

• subsidiaries of public bodies (e.g. local authorities).

• housing construction and management operations of registered social landlords (RSLs).

• proposals that relate to the on-going delivery costs of services or projects.

• proposals that would normally be funded by commercial loan finance or other funding sources.

• organisations where the beneficiaries live outside Scotland.

investment priorities

• employability

• environmental action

• the underlying causes of health inequality

Other priorities will emerge as the fund develops.

2008/09 investment priorities will focus on organisations with social missions that address issues of:

investment products

• loans - business plans will assessed for loan first (including commercial loans) before any other investment is considered.

• risk/’patient’ capital - devised to deliver a mix of financial and social returns.

• strategic investments - (non-repayable) amounts based on social outcomes and will not comprise more than 50% of any funding package

• development support – for organisations ‘almost but not quite’ investment-ready. SIF will consider funding to pay for

accounting or legal advice/support in relation to areas such as marketing, human resources,

investments will be tailored on a case by case basis and may contain a mix of :-

investment process

• initial screening against published investment criteria to establish eligibility and ‘investment-readiness’.

• collection of brief details of the organisation and the investment being sought.

• discussion/feedback to assess ‘fit’ with investment priorities.• rigorous assessment of business plan, focused on four

elements – business model – organisational development – financial stability – projected social outcomes.

• development of investment package, submission to investment panel with recommendations.

• approval and documentation• monitoring and evaluation.

Social Investment Scotland

Second Floor1/2 St Andrew SquareEdinburgh EH2 2BD

0131 558 7706

www.socialinvestmentscotland.com