Building the infrastructure of social investment

We commissioned this report from Dan as we recognise we both have a role in supporting the infrastructure that underpins social investment, and which can help the market develop further. The Big Lottery Fund made an important contribution through its Next Steps programme in 2011 and 2012, which helped several new social investment products come to market. And Big Society Capital has invested directly in several market infrastructure providers, including the Social Stock Exchange and ClearlySo, who help social organizations raise capital.

However, as Dan’s report shows, there is further to go. He highlights the gaps or missing infrastructure in the market and singles-out as priority: improving product and deal-level data and information, more support to product developers, and some brokerage and advisory services.

One of the Dan’s recommendations is that our two organizations work together to financially support market infrastructure in an appropriate way. Moreover, that this might involve blending our resources to make sure such financial support is appropriate – not pure grant with no challenge, support or strings attached, but not fully repayable investment capital either, which nascent infrastructure bodies may not be able to bear.

We note this, and other recommendations, including a more coordinated approach to funding research into social investment, and we plan to act upon them in the months ahead.