Social Impact Debt Fund IV

Debt fund providing unitranche funding of up to £4m to impactful enterprises with balance sheets to support secured debt.

The challenge

People up and down the country are experiencing the effects of the cost-of-living crisis, with 17.1% of the UK living in poverty[1]. Poverty and health are closely linked, with data showing that there are around £1.6 million people in England aged 65 years and over with unmet care needs. Housing is also becoming increasingly unaffordable, with 274,000 people in the UK experiencing homelessness[2].

Approach

Social Impact Debt Fund IV lends to organisations across the UK, with particular focus on areas of poverty that have a greater need for support and investment in respect of homelessness and affordable housing, care and hospice services, or improved social infrastructure.

The Fund

The Fund will offer secured Unitranche loans for asset-backed growth and will target borrowers creating an impact in the Care, Housing, and Social Infrastructure sectors. The Fund aims to provide large loans to proven impactful charities, social enterprises and profit with purpose businesses, whilst not requiring borrowers to coordinate with complex syndicate structures that delay execution timelines and complicate capital structures.

Anticipated loans will be fixed rate, sized between £1m and £4m with expected terms of 3 to 5 years.

[1] Living standards, poverty and inequality in the UK: 2023 | Institute for Fiscal Studies (ifs.org.uk)

[2] Social Impact Debt Fund IV - The Big Issue