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