Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Local Partnerships The DH Social Enterprise Investment Fund, case study and lessons learned
Background <ul><li>Capital, finance, investment  vs.  revenue, funding, income </li></ul><ul><li>(debt, grants, equity) (g...
Case study: The market for community health services <ul><li>Immature commissioning </li></ul><ul><li>Uncertain future com...
The Social Enterprise Investment Fund <ul><li>£100m fund </li></ul><ul><ul><li>To support the delivery by social enterpris...
SEIF investment policy – the theory <ul><li>Viable but not bankable </li></ul><ul><li>Products </li></ul><ul><ul><li>Busin...
SEIF – challenges in practice <ul><li>Politics  </li></ul><ul><li>EYF </li></ul><ul><li>Perverse incentives for fund manag...
A youth sector spin-out fund? <ul><li>NESTA call for proposals </li></ul><ul><li>Proposal: </li></ul><ul><ul><li>to use BS...
What is the opportunity? <ul><li>To provide the financial means to catalyse, nurture and support the spin-out of youth ser...
Who will invest and how? Big Society Fund? Bank? (quasi-) equity Nesta f HSBC? CFS? Debt Commercial Lenders e Bridges? Bax...
Questions <ul><li>Does this investment model respond to / is it tailored appropriately to the potential for income generat...
Upcoming SlideShare
Loading in …5
×

Dan Gregory Chief Officers Feb 2011

711 views

Published on

  • Be the first to comment

  • Be the first to like this

Dan Gregory Chief Officers Feb 2011

  1. 1. Local Partnerships The DH Social Enterprise Investment Fund, case study and lessons learned
  2. 2. Background <ul><li>Capital, finance, investment vs. revenue, funding, income </li></ul><ul><li>(debt, grants, equity) (grants, contracts, fees) </li></ul><ul><li>Investment need to respond to / be tailored appropriately to the potential for income generation. E.g. you only lend to someone if they can afford to repay. And you should only borrow to invest for the future. </li></ul><ul><li>So what is the potential for revenue generation? In other words, what is the ‘state of the market’…? </li></ul>
  3. 3. Case study: The market for community health services <ul><li>Immature commissioning </li></ul><ul><li>Uncertain future commissioning landscape </li></ul><ul><li>Cuts </li></ul><ul><li>Provider side dominated by state providers but opening up </li></ul><ul><li>Payment by results? </li></ul><ul><li>Comparison with youth services? </li></ul>
  4. 4. The Social Enterprise Investment Fund <ul><li>£100m fund </li></ul><ul><ul><li>To support the delivery by social enterprises of innovative health and social care services and products; </li></ul></ul><ul><ul><li>To provide start-up funding and longer term investment to emerging and existing social enterprises in the health and social care sector with a view to securing their sustainability. </li></ul></ul><ul><ul><li>For the SEIF to become financially sustainable through returns on non-grant investments and through leverage of funds from external investors. </li></ul></ul><ul><li>For emerging and existing social enterprises </li></ul>
  5. 5. SEIF investment policy – the theory <ul><li>Viable but not bankable </li></ul><ul><li>Products </li></ul><ul><ul><li>Business development grants </li></ul></ul><ul><ul><li>Loans </li></ul></ul><ul><ul><li>Grants </li></ul></ul><ul><ul><li>Convertible grants </li></ul></ul><ul><ul><li>Quasi-equity </li></ul></ul><ul><ul><li>Guarantees </li></ul></ul><ul><ul><li>Equity </li></ul></ul><ul><li>Co-investment </li></ul>
  6. 6. SEIF – challenges in practice <ul><li>Politics </li></ul><ul><li>EYF </li></ul><ul><li>Perverse incentives for fund manager and Department: </li></ul><ul><ul><li>co-finance </li></ul></ul><ul><ul><li>fund sustainability </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>products </li></ul></ul><ul><li>Investment approach vs. programme model </li></ul>
  7. 7. A youth sector spin-out fund? <ul><li>NESTA call for proposals </li></ul><ul><li>Proposal: </li></ul><ul><ul><li>to use BSB capital to attract co-investment into a sustainable fund, which will provide financial support to youth services which wish to spin-out of the local public sector into viable social enterprises. </li></ul></ul>
  8. 8. What is the opportunity? <ul><li>To provide the financial means to catalyse, nurture and support the spin-out of youth services from the local public sector, into viable social enterprises. </li></ul><ul><li>To accord with an overall national and local policy direction , a move to a plurality of local services provision, moving services closer to the communities who rely on them. </li></ul><ul><li>To focus on youth services in particular, an area of national and local priority where there is evidenced demand for alternative means of delivery. </li></ul><ul><li>To leverage BSB capital by attracting co-investment into a fund which will provide the financial support for local youth services to spin-out into social enterprises. </li></ul><ul><li>To fill a gap in the market , fledgling spin-outs are typically un-bankable but spinning-out takes both human and financial resources. </li></ul>
  9. 9. Who will invest and how? Big Society Fund? Bank? (quasi-) equity Nesta f HSBC? CFS? Debt Commercial Lenders e Bridges? Baxi? (quasi-) equity Social VC d CAN? SFCT? Grant Social Investors c Local Authority? Grant Public sector b Staff and community? Equity Stakeholders a Example Investment Investor
  10. 10. Questions <ul><li>Does this investment model respond to / is it tailored appropriately to the potential for income generation? </li></ul><ul><li>Could this offer an opportunity to create a social investment fund for the youth sector? </li></ul><ul><li>Market dynamics particular to the youth sector: </li></ul><ul><ul><li>Already mixed market of provision? </li></ul></ul><ul><ul><li>Asset rich, cash poor? </li></ul></ul><ul><ul><li>Untapped potential for social enterprise models? </li></ul></ul>

×