The document outlines the targets and objectives of the Finance Fund, including committing up to £45 million total and building to a total invested level of £33 million. It analyzes the current portfolio, which includes 92 total investments across debt, equity, funds, land purchases, and other categories. Key aspects of the current climate are discussed such as uncertainty, rising demand and reducing resources, resilience, and the need for redesign and innovation.

1. Innovation in Funding
Social Investment

2. 2
The investment targets for the Finance Fund are:
• To achieve social impact equivalent to that achieved by our grant-making
• To commit no more than a total of £45m (previously £35m)
• To build to a total invested level of £33m (previously £26m)
• To make new commitments at a rate of approximately £5m per annum
• To aim to recover, at a portfolio level, the initial capital outlay (i.e. a total
return of 0% net of costs)
Aims and Objectives

3. 3
Analysis of current portfolio
Investment type:
Number of
Investments
Debt 39
Equity 5
Fund 19
Land Purchase 12
Other 7
Quasi-equity 4
Social Impact Bond 6
Grand Total 92

4. 4
• ‘Permeable Boundaries’…
…between state, social sector and the private sector and between financing solutions
• Mixed Funding…
…of grants, earned income, social investment, fund raising, trading, and contract finance
• Localism ….
…devolution of policy, money, accountability and asset transfers, community empowerment
• Less Government…
…in thinking, design and delivery but needs to retain role as regulator and planner and
provide democratic accountability
New Models….
…Technology, partnerships, scale, governance
What we See

5. • Uncertainty and Risk
- Contract commissioning, payment by results, social investment, long
term evidence in a short term world
• Rising Demand, Reducing resources
- Cuts in funding, reduced giving, business management skills,
competitive environment
• Resilience
- More for less, less core funding, no policy/campaigning funding,
inhospitable environment
• Re-design and Innovation
- New governance and business models, disintermediation, technology,
social media/communication
Current Climate

6. 6
• Keep mission on the table…
…mission is what defines us as a social investor although we all need to get better at
evidencing and communicating our impact
• Price for impact…
…we price for a combination of social impact and risk in order to understand the value to us of
the benefit being created.
• Keep it simple….
…and focus on what the investee needs to solve the problem and try to find the right
mechanisms to make that work. It can then become a useful tool alongside grant making If
it doesn’t work then we don’t do it.
• Embrace risk…
…By understanding and embracing the risk makes means we lower costs, reduce time and
complexity, can innovate. We also know what failure looks like so we can learn and become
better investors.
• Stay connected….
…Through co-design, co-production and collaboration, staying close to the sector, understand
the changing and challenging environment
What we have learnt

7. 7
Resonance/Real Lettings Property Fund
• which owns and lets properties in London and surrounds for move-on accommodation for
ex-homeless people.
Emmaus
• £500k in a Loan Fund run by Emmaus Enterprises, which aims to provide affordable start-
up and growth capital to Emmaus Communities at 3%. 1% fee charged for the facility
• Supported by a grant to fund the post of running the fund and which builds expertise and
capacity within Emmaus
B4RN
• Community owned and built by local volunteers in Lancashire
• £300k loan to cover costs of converting to a formal co-operative structure
Land Purchase Agreement
• We buy land on behalf of conservation organisations, lease it to them, give them the
option to buy it off us in 2 years. We charge 2% interest + recovery of legal costs
Autograph ABP
• Work internationally in photography and film, cultural identity, race, representation and
human rights.
• A £300k loan to develop a commercial Image Bank, and advocate progressive research of
our continuously growing collection and living archive.
Impact examples – Homelessness

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