SOCIAL INVESTMENT – AN OVERVIEW

Melanie Mills, Social Sector Engagement Director@Mel_BigSocCap

The Past, Present & Future

EVERY CHARITY AND SOCIAL ENTERPRISE IN THE UK SHOULD BE

ABLE TO ACCESS APPROPRIATE AND AFFORDABLE FINANCE AND

SUPPORT TO GROW THEIR POSITIVE IMPACT ON SOCIETY.

SOCIAL INVESTMENTWE BELIEVE

2

SOCIAL IMPACTWORKING ACROSS DIVERSE & MULTIPLE SOCIAL ISSUES

Ageing population

Adoption

Fragmented communities

Educational attainment

Obesity

Youth unemployment

Homelessness

Social isolation

Social Isolation

ABOUT BIG SOCIETY CAPITALHOW THE MONEY FLOWS

Big Society Capital is an independent wholesale financial institution with a social mission, set up to help grow the social investment market.

OUR VISIONFOR A SUSTAINBLE SOCIAL INVESTMENT MARKET IN THE UK THAT DRIVES SOCIAL CHANGE

InvestmentFinancial

Return

PhilanthropySocial Return

Social InvestmentFinancial &

Social Return

Finance for small &

medium-sized

charities Capital that allows innovation in tackling social

problems to quickly grow &

replicate

Mass participation

in social investment

Greater financial scale

in order to finance social

issues

Image: St Mungo’s Broadway

OUR MISSIONTO SUPPORT AND GROW THE SOCIAL INVESTMENT MARKET

• Improving understanding of social investment• Creating a better environment for social

investment, e.g. tax relief• Encouraging mass participation more individuals

participating as social investors• Increasing awareness among charities and

social enterprises that might benefit from social investment

• £162 million drawn down with co-investment by the end of June 2015

• 39 Investments with additional £208m from co-investors

• General and specialist funds: loans, equity, regional, social issue, community

• Social Impact Bonds• Social Banks• Charity Bonds• Supporting market infrastructure

As an investorAs a market champion

HOW & WHERE ARE THE INVESTMENTS BEING MADE?

PORTFOLIO BY OUTCOME AREA

Portfolio – Asset type

Outcome Area Investments % commitments

Employment, Training & Education 3%

Income and Financial Inclusion 1%

Housing and Local Facilities

18%

Physical Health 2%

Mental Health and Well-being

6%

Family, Friends and Relationships 1%

Arts, Heritage, Sport and Faith 0%

Citizenship and Community 15%

Conservation of the natural environment 6%

GENERAL 44%

Infrastructure 14%

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HOW & WHERE ARE THE INVESTMENTS BEING MADE?

Key

Investment location

Investment location with multiple investments

Invest location with multiple outcome areas

As well as UK-wide organisations and digital projects, Big Society Capital, and the intermediaries it has invested in, have funded outcomes all over the country.

SOCIAL INVESTMENT OPTIONS

Equity

Asset Ownership

Alternatives

Project Financing

Secured Loans Unsecured Loans

Community Shares

Venture Funds

Crowdfunding

Social Angels

Community Shares

Social Impact Bonds

Charity Bonds

Social Banks

Mainstream Banks

Crowdfunding

Unsecured Loan Funds

Social Investment Tax Relief

Social Property Funds

Asset Purchase Facilities

Social Investment Tax Relief

Social Investment Tax Relief

Small & medium sized charities

Access will deliver a wholesale blended capital programme to offer smaller and riskier investments to earlier stage ventures. It will also commission flexible innovative capacity building programmes to support the social sector to become investment ready.

InnovationThe Business Impact Challenge is an open competition for corporates to propose high-impact social investment ideas. We will match the leading proposal with up to £15million and provide further advice and support.

Mass participation

There are an increasing number of individual investors putting money into community shares. £30milllion was raised in 2014 alone by 61 different organisations for a range of projects including community shops, pubs, renewable energy and sports facilities. We helped Resonance to further expand its Community Share Underwriting Fund to support this growth.

Scale

The charity bond market took significant steps in 2014. Golden Lane Housing became the first charity bond to be successfully listed on the London Stock Exchange and Rathbone's Charity Bond Support Fund was launched with £10million from Big Society Capital.

KEY DEVELOPMENTS IN 2014

GET SITR CAMPAIGN

• MASS EDUCATION– Email, events, resources, media

• ADVISORS & PROVIDERS– Awareness, knowledge & expertise

• MARKET LEADERS– Support for first 30 deals– PR, legal, research, strategy, tax

MASS PARTICIPATION

Social Pensions Social Savings & Investments

Transparency #OpenBSC

In the publication ‘An open conversation about transparency’, Big Society Capital outlined a number of proposals in its roles as an investor, market champion and corporate organisation. Responses and suggestions were collected and as a result all 11 proposals will be progressed – update on next steps shared Oct 15

Outcome Finance Fund

2013:

2016:

In September 2015 Big Society Capital launched a call for an Outcome Finance Fund which it is hoped will build on the progress made in Social Impact Bond market and support social sector organisations in accessing finance for outcomes contracts. The design of the fund will be developed following conversations with charities and social enterprises as well as other stakeholders to ensure it meets their needs.

PLANS FOR THE FUTURE

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WWW.BIGSOCIETYCAPITAL.COM

Melanie MillsSocial Sector Engagement Director@Mel_BigSocCap