More than £1 billion of social investment available for charities and social enterprises | Big Society Capital

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More than £1 billion of social investment available for charities and social enterprises

More than 800 charities and social enterprises are using social investment from Big Society Capital and its co-investors to address some of the toughest social challenges in the UK.

The announcement came as the organisation published its 2017 Annual Review. The report also gives an update on Big Society Capital’s strategy, launched in July last year, and details new developments that are taking place in the wider social investment market.

At the end of 2017, £1.1 billion was available to charities and social enterprises from Big Society Capital and its co-investors. Of this, £434 million was Big Society Capital’s money. Of that total, £764 million had been drawn down and was reaching more than 800 front line organisations. Nineteen investments were made by Big Society Capital in 2017 with a value of £94 million.

The report shows that 14% of Big Society Capital’s co-investors are UK foundations and charities.

Cliff Prior, Chief Executive of Big Society Capital, said:

“It’s been a big year for Big Society Capital. There has been growth across the whole social investment market while we saw funds committed by us and our co-investors pass the £1 billion mark.

“More than 800 charities and social enterprises are now using repayable finance from Big Society Capital and our co-investors, tackling some of the toughest social challenges faced in the UK today. What’s more important is that organisations are using social investment alongside other sources of finance, while collaboration and partnership are coming to the fore in creating solutions for social issues.”

Hull Women’s Network recently took on an investment from Social and Sustainable Capital to provide more good quality housing and support services for vulnerable women and children fleeing domestic violence and abuse in Hull.

Lisa Hilder, a Trustee of Hull Women’s Network, said:

“Taking on social investment for the first time was a big step for us, but we’ve never looked back. It’s enabled us to grow consistently and deliver a whole lot more benefit to the women and children we look after.”

Big Society Capital also announced its first profit. The £0.8 million net profit was largely due to the growth and performance of its social investment portfolio, reflecting its growing maturity. This growth has been driven by increases in the valuation of a number of the largest social investments together with a higher interest and fund income generated in the year. Given the early-stage nature of the portfolio and as a result of applying fair value measurement principles each year, it is likely that the value of Big Society Capital’s portfolio will rise and fall, resulting in both net profits and losses in future years.

The social investor has so far received £501 million from the Reclaim Fund and its four shareholder banks. In January this year, the government announced that Big Society Capital will receive the final £100 million originally committed in 2012, with an additional £25 million to address the housing needs of vulnerable people.

 

ENDS

 

 

Contact Information

For more information, please contact:

David Dinnage

Communications Director, Big Society Capital

e |

t | 020 7186 2540 m | 07885 879500

 

NOTES TO EDITORS

About Big Society Capital

Big Society Capital improves the lives of people in the UK by connecting social investment to charities and social enterprises.

We know that investment can help charities and social enterprises achieve more. We believe the greatest chance to improve lives comes when investors and enterprises are both motivated by social mission.

We engage with investors, fund managers, charities and social enterprises to make it easier to use social investment. With our co-investors, we have made over £1bn of new capital available to organisations with a social mission, through investments into fund managers and social banks. We have a special focus on: providing homes for people in need; strengthening communities; and early action to prevent problems.

For more information visit www.bigsocietycapital.com

The breakdown of the draw down from Big Society Capital is as follows:

 

2016

2017

H1. 2018

 

Capital received from the Reclaim Fund and banks

£501m

£501m

 £501m

 

Big Society Capital’s signed deals (cumulative)

£340m

£434m

 £456m

 

Cumulative amount of investment signed by Big Society Capital and our co-investors

£893m

£1.1bn

 £1.3bn

 

Drawn down from Big Society Capital

£142m

£224m

 £246m

 

Drawn down from Big Society Capital and our co-investors

£467m

£764m

 £861m

 

 

 

  • By the end of December 2017 the amount of money signed and available to charities and social enterprises rose to £1.1 billion, across 74 different investments. £434 million of this total is from Big Society Capital and £712 million from co-investors.
Last updated | 
24 July 2018