Social investment
ACEVO Health and Social Care
Forum
22 April 2014
Geetha Rabindrakumar
grabindrakumar@bigsocietycapital.c...
What is social investment?
It IS:
the provision of finance to generate social and
financial returns
It is NOT:
a grant – t...
Why is social investment beneficial?
• Fills financing gap for
innovation and growth,
increasing impact.
• Strengthens gov...
£109m £72m
BSC role as a wholesaler
Social investment to create positive impact for vulnerable groups
General
Public / All
Long-term
unemployed
Homeless
Addic...
VCS sector developed in health and social care
8% of social enterprises operate in health and social care.
Long track re...
Increasing demand for social investment
•Shift to PBR contracts
•Increase in Social Impact Bonds that focus on
preventativ...
8
Charity bonds for property – eg Dementia care homes, Independent
Living
• Golden Lane Housing issued £10m bond in
2013
•...
Scaling social enterprise with motivated investors -
Oomph! Wellness
“We wanted investors that shared
our values: namely a...
10
Scaling up local community based services
• Supports some 4,900 of the most vulnerable adults across the
country to liv...
Community based personalised services – DERiC
11
Developing and Empowering
Resources in Communities
DERiC
Provides loans
C...
SIB Model: To reduce loneliness and isolation amongst older
people (in development by Social Finance)
Investment in servic...
Support to prepare for investment
– For social ventures seeking to
raise over £0.5m investment
– Grant (£50k-£150k) to cov...
Other online information
1) Submit online queries to BSC investment team
http://www.bigsocietycapital.com/ask-us-question
...
Funds in 2014
Care and
Wellbeing
Healthcare Charity Bonds
SIB Fund Property Funds
Other sector
focused
funds…?
Finance for...
Future Developments
Social Investment
Tax Relief
BSC & BIG co-
financed initiatives
ICRF 2
(Cabinet Office)
Community
Asse...
Wider social investment ecosystem
OCS Social
Incubator
Fund(£10m)
Big Venture
Challenge (>£5m)
CO ICRF
(£10m)
Stage of bus...
www.bigsocietycapital.com
Big Society Capital Limited is registered in England and Wales at Companies House number 0759956...
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Geetha Rabindrakumar Slides: Health and Social Care SIG 22 April 2014

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  • Oomph! exists to transform the quality of life of older people everywhere through fun, inclusive health and wellness programmes including chair cheerleading and chair aerobics.We deliver chair-based exercise classes for older people in care homes and aim to fundamentally change the way old people experience their later years.
  • Social Issue:Looked after children typically suffer poorer outcomes than children in the general population:A quarter of all prisoners have been in care compared to 2% of the population overall;Educational attainment by looked after children is five times worse than for the population overall over 50% of looked after children obtain fewer than five GCSEs or equivalent compared to the national figure of 10%; andOne third of previously looked after children are NEET (not in education, employment or training) at age 19.The provision of state care is expensive, costing between £150,000 and £180,000 per annum for a child in residential care; and between £20,000 and £47,000 per annum for a child in foster care.ECC commissioned SF to find alternatives that would save money and provide better outcomes. SF found MST.
  • Geetha Rabindrakumar Slides: Health and Social Care SIG 22 April 2014

    1. 1. Social investment ACEVO Health and Social Care Forum 22 April 2014 Geetha Rabindrakumar grabindrakumar@bigsocietycapital.com
    2. 2. What is social investment? It IS: the provision of finance to generate social and financial returns It is NOT: a grant – there is an expectation of repayment of the finance, plus a return
    3. 3. Why is social investment beneficial? • Fills financing gap for innovation and growth, increasing impact. • Strengthens governance and accountability • Brings in new groups of supporters, and their skills and experience. • Capital is recycled for onward investment, increasing impact • Investment practice aligned with mission • Supporting sustainability in voluntary sector For INVESTEES For INVESTORS
    4. 4. £109m £72m BSC role as a wholesaler
    5. 5. Social investment to create positive impact for vulnerable groups General Public / All Long-term unemployed Homeless Addiction issues Long-term health issues, life threatening or terminal illness Living in poverty/are financially excluded Learning disabilities or mental health needs Physical disabilities or sensory impairment Vulnerable young people and NEETs Vulnerable parents Vulnerable children Voluntary carers Elderly (including those with dementia) Ex-offenders Experienced crime or abuse Employment, training and education Housing and local facilities Income and financial inclusion Physical health Mental health and well-being Family, friends and relationships Citizenship and community Arts, heritage, sport and faith Conservation of the natural environment Outcome AreasBeneficiary groups Eg Scope bond £2m 2012 - Investment used to grow fundraising and expand charity shops - Investors included Foundations, In stitutions, HN Ws http://www.bigsocietycapital.com/outcomes-matrix
    6. 6. VCS sector developed in health and social care 8% of social enterprises operate in health and social care. Long track record providing £4.5-7bn of services Have potential to improve service user outcomes – Focus on prevention – Collaboration with service users – Close working with communities – Expert knowledge of local needs and preferences – Engagement with volunteers building social capital
    7. 7. Increasing demand for social investment •Shift to PBR contracts •Increase in Social Impact Bonds that focus on preventative services with potential for long term cash savings Delivering outcome-based contracts •Working capital for organisations shifting to new commissioning environmentBridging cash flow •Supporting innovation in service delivery •Accessing new revenue streams from commissioners Developing new services and products •Developing new facilities to accommodate care users Purchasing assets
    8. 8. 8 Charity bonds for property – eg Dementia care homes, Independent Living • Golden Lane Housing issued £10m bond in 2013 • To provide adapted houses for people with learning disabilities supported by Mencap
    9. 9. Scaling social enterprise with motivated investors - Oomph! Wellness “We wanted investors that shared our values: namely a commitment to strong commercial returns but never at the expense of the health and wellbeing of the older adults we exist to serve”
    10. 10. 10 Scaling up local community based services • Supports some 4,900 of the most vulnerable adults across the country to live fulfilling lives as part of a family and community. • Opportunity to drive a national expansion of high-quality community care. • Social Finance is seeking to raise social investment to support the growth of Shared Lives across the country through an “Incubator”
    11. 11. Community based personalised services – DERiC 11 Developing and Empowering Resources in Communities DERiC Provides loans CPCE franchise (Independent Brokers) - Produce care support plan - Provide volunteer services alongside commissioning care support - Share savings with LA Service providers - Foster local brokers - Improve life experiences for older people through more community support & more effective use of personal budgets
    12. 12. SIB Model: To reduce loneliness and isolation amongst older people (in development by Social Finance) Investment in services to reduce loneliness – benefits of reduced service use and improved health outcomes Reduced loneliness SIB SPV Investment into SIB programme Payments represent a % of cost savingsInvestors Commissioner (eg LA) Delivery programme (could include peer support, group activity, CBT for most isolated) Lead delivery charity Payment metric: Reduction in loneliness - Pressing social need - Engaged commissioner - Complex social outcome to evidence
    13. 13. Support to prepare for investment – For social ventures seeking to raise over £0.5m investment – Grant (£50k-£150k) to cover cost of capacity building support (application joint with advisory firm – over 35 approved providers) http://www.beinvestmentready.org.u k/social-ventures/ Big Potential (new - first half 2014) - £10m fund over 3 years - For VCSE organisations seeking to raise up to £500k investment (or contracts) - Diagnostic tool assessment to check whether social investment is a realistic possibility - Advisory support (apply jointly with an approved provider): - Preliminary grants to build organisational capability (c£25k) - Investment plan grants (c£45k) - http://www.sibgroup.org.uk/bigpote ntial/
    14. 14. Other online information 1) Submit online queries to BSC investment team http://www.bigsocietycapital.com/ask-us-question 2) Sources of funding currently open: http://www.bigsocietycapital.com/sources-investment 2) Directory of social finance providers and advisers (can filter for specific requirements): http://www.bigsocietycapital.com/finding-the-right-investment 3) NCVO guide and tool http://www.fundingcentral.org.uk/Page.aspx?SP=6059 4) Big Potential Website and Big Lottery Fund Guide to Social Investment (to launch by summer 2014)
    15. 15. Funds in 2014 Care and Wellbeing Healthcare Charity Bonds SIB Fund Property Funds Other sector focused funds…? Finance for medium enterprises Small unsecured loans Regional funds (Scotland, NE)
    16. 16. Future Developments Social Investment Tax Relief BSC & BIG co- financed initiatives ICRF 2 (Cabinet Office) Community Assets Fund Social ISAs (bond funds) Manifesto development
    17. 17. Wider social investment ecosystem OCS Social Incubator Fund(£10m) Big Venture Challenge (>£5m) CO ICRF (£10m) Stage of business growth Commissio ning/reven ue support Secured Loans Unsecured Loans Equity Grant Restricted Grant Social Investment Funds (~£20m) Start up Early Growth Established Typeofcapital BIG Potential (£10m) CO Outcomes Fund (£10m) BLF Outcomes Fund (£40m) Fully or partly funded by government Fully or partly funded by Big Lottery Fund Partly capitalised by Big Society Capital Other Grant programmes from Charitable Trusts and Foundations (>£2bn) Social Banks (~£180m) Tech for Good (£500K)
    18. 18. www.bigsocietycapital.com Big Society Capital Limited is registered in England and Wales at Companies House number 07599565. Our registered office is 5th Floor, Chronicle House, 72-78 Fleet Street, London EC4Y 1HY. Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.
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