SOCIAL INVESTMENT FORUMsocialenterprise.org.uk/social-investment-forum
DID YOU KNOW?Social enterprises employ morepeople 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.WHY? WHAT?Invest in an Debtacquisition EquityWorking capital Quasi-EquityDevelopment capitalReserve capital
Social Investment Market Structure Mainstream financial Trusts and Big Society Capital investors Foundations Wholesaler providing investment to social Investment banks | Endowments investment finance intermediaries Pension funds | Endowments Trusts |Foundations | CSR Social investment finance intermediaries High street | Philanthropists social banks | non-bank social investors | banks Grant makers Mainstream service providers banking Providing loan, equity and quasi-equity finance services Providing business and investment readiness advice and support to the social sector Structuring and brokering investment for the social sector Social sector improving people’s lives, strengthening communities and contributing to economic growth Individuals and communities throughout the UK
Social investment demand and growth rate by sectorSOURCE | The First Billion, Big Society Capital and Boston Consulting Group, September 2012
CASE STUDY Hamelin Trust | CAN Invest £120,000 loan over 2 years Restructure to become more efficient and improve its services including a resource centre, supportedaccommodation, and outreach services within homes to the more than 200 disabled children and adults.
DID YOU KNOW? Social enterprises are starting up atmore than three times the proportionof start ups among mainstream small businesses
CASE STUDY Beyond Youth |UnLtd Big Venture ChallengeBeyond Youth view offending as an addiction andaddress 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 Youthprogramme is 23% - a third of the national average.
CASE STUDY Cool2Care |CAN Invest | CAF Ve n t u r e s o m e | B i g I s s u e I n v e s t 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 carefrom their Local Authority. The investment will support services to a further 5,000 families.
CASE STUDY International Development Enterprises UK | CAF Venturesome £160,000 loan over 1 year Bridging loan for a project in Ethiopia that uses micro-irrigation technology to bring measureable improvement to the food security of 6,600 rural households.
DID YOU KNOW? Social enterprises are three times aslikely to be based in deprived areas as traditional business
CASE STUDYPURE 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 orRenewable Heat Incentive. PURE will normallylend up to 50% of project costs to a maximum of £50,000.
CASE STUDYInvesting for Good | Big Society CapitalPioneered 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 STUDYSpaceHive |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 insponsorship 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 economy Median annual turnover of socialenterprises 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 willlist 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
CASE STUDYBurton 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.
CASE STUDY S o c i a l A d Ve n t u r e s | T h e S o c i a lInvestment Business | Local PartnershipSpin-out from NHS Salford offering well-being services to thecity’s most hard to reach groups including elderly people with learning difficulties, asylum seekers and refugees, drug andalcohol users and people suffering from mental health issues. The Deal £35,000 loan and £75,000 grant from the DH Social Enterprise Investment Fund. Impact66% owned by staff and service users and 260% increase in income. 40% of their income is from outside the NHS.
CASE STUDYHCT 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 growth58% 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