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Key Fund

Fund size | £
Big Society Capital investment | £

Finance for charities and social enterprises in the Midlands and North of England.

Social impact

Key Fund is an experienced social investment intermediary specialising in providing loan finance to small and medium sized charities and social enterprises across the Midlands and North of England. The organisations it supports deliver social impact across a wide range of social issue areas, often operating in the most disadvantaged communities.

This investment will enable Key Fund to meet a growing demand from charities and social enterprises in need of loan finance to deliver further social impact, especially those which have struggled to secure finance from mainstream lenders.

Financial rationale 

Key Fund has a strong track record of making investments and has provided finance to thousands of social sector organisations since it was founded in 1999. To support Key Fund's continued operations in the social investment market, BSC is lending £4.5 million directly to Key Fund, split between a £2 million term loan and a £2.5 million revolving credit facility. The term loan will support Key Fund's short-term capital needs for general investment activities, while the revolving credit facility can be draw down and repaid, as needed, over the medium-term to support general working capital needs and on-lending to charities and social enterprises. 

Market development

Key Fund  is a valuable regional social investment intermediary that has significant reach across the Midlands and North of England. It uses its experience and knowledge to provide appropriate finance to charities and social enterprises seeking to grow or diversify their activities.

This investment will enable Key Fund to increase its deployment of unsecured loans of up to £150,000 to charities and social enterprises, as well as playing a strategic role of providing both bridging finance between contracts and/or match investment to specific programmatic funding.

Investment details

Last updated | 
28 October 2016