Presentation highlighting the exciting developments in the Social Investment landscape 2012

1. SOCIAL INVESTMENT
FORUM
socialenterprise.org.uk/social-investment-forum

2. DID YOU KNOW?
Social enterprises employ more
people relative to turnover than
mainstream SMEs

3. What is social investment?
Social investment, also
known as impact
investment, is the
provision and use of
capital to generate social
as well as financial
returns.
WHY? WHAT?
Invest in an Debt
acquisition
Equity
Working capital
Quasi-Equity
Development capital
Reserve capital

4. Social Investment Market
Structure
Mainstream financial
Trusts and Big Society Capital investors
Foundations Wholesaler providing investment to social Investment banks |
Endowments investment finance intermediaries Pension funds |
Endowments
Trusts |
Foundations | CSR
Social investment finance intermediaries High street
| Philanthropists social banks | non-bank social investors | banks
Grant makers Mainstream
service providers banking
Providing loan, equity and quasi-equity finance services
Providing business and investment readiness advice and
support to the social sector
Structuring and brokering investment for the social sector
Social sector
improving people’s lives, strengthening communities and contributing to economic growth
Individuals and communities throughout the UK

5. Social investment demand and
growth rate by sector
SOURCE | The First Billion, Big Society Capital and Boston Consulting Group,
September 2012

6. CASE STUDY
Hamelin Trust | CAN Invest
£120,000 loan over 2 years
Restructure to become more efficient and improve its
services including a resource centre, supported
accommodation, and outreach services within homes to the
more than 200 disabled children and adults.

7. DID YOU KNOW?
Social enterprises are starting up at
more than three times the proportion
of start ups among mainstream small
businesses

8. CASE STUDY
Beyond Youth |UnLtd Big
Venture Challenge
Beyond Youth view offending as an addiction and
address the emotional cause of offending through
therapeutic interventions.
The Deal
£50,000 UnLtd | £50,000 from Venturesome
Impact
Re-offending rates for people on the Beyond Youth
programme is 23% - a third of the national average.

9. CASE STUDY
Cool2Care |CAN Invest | CAF
Ve n t u r e s o m e | B i g I s s u e I n v e s t
Provide personal assistant care to disabled children and their
families across the country.
About the Deal
Blended form of debt and philanthropy grant over 3 years to
expand services
Big Issue Invest (£200,000 of structured debt) | Venturesome
(£150,000 debt) | CAN Invest (£150,000 of venture philanthropy-
backed grant).
Impact
Less than one in 10 families with disabled children receives care
from their Local Authority. The investment will support services to
a further 5,000 families.

10. CASE STUDY
International Development Enterprises UK | CAF
Venturesome
£160,000 loan over 1 year
Bridging loan for a project in Ethiopia that uses micro-
irrigation technology to bring measureable improvement to
the food security of 6,600 rural households.

11. DID YOU KNOW?
Social enterprises are three times as
likely to be based in deprived areas as
traditional business

12. CASE STUDY
PURE The Clean Planet Trust |Big
Society Capital
Providing small, low interest loans to
communities to meet the costs of installing
renewable energy equipment.
The Deal
£1,000,000 loan to PURE to support all
technologies eligible for the Feed-In-Tariff or
Renewable Heat Incentive. PURE will normally
lend up to 50% of project costs to a maximum
of £50,000.

13. CASE STUDY
Investing for Good | Big Society
Capital
Pioneered the charity bond programme in the UK. The
bonds are placed with institutional investors, public
foundations, private trusts and individuals who are
attracted by the blend of financial and social impact
returns.
The Deal
£875,000 secured loan to enable Investing for Good
to underwrite the issuance of a fixed income bond in
order to build the market for further issuance by
charities and social enterprises.

14. CASE STUDY
SpaceHive |UnLtd Big Venture
Challenge
A crowdfunding platform that helps raise funds
locally for projects such as a community garden,
skate park, or playground and leverage in
sponsorship partners. It makes the planning process
transparent and easy to navigate putting
communities in the driving seat of neighbourhood
planning.
The Deal
£162,000 in equity from 3 angel investors

15. DID YOU KNOW?
Social enterprises are increasing their
contribution to the UK economy
Median annual turnover of social
enterprises has grown from £175,000 in
the 2009 to £240,000 in 2011

16. CASE STUDY
Social Stock Exchange |Big
Society Capital
A regulated platform for investors to invest in social
purpose businesses – an essential part of the market
infrastructure that connects socially motivated
investors with organisations in need of capital. It will
list and facilitate the trading of securities in businesses
that address social challenges
The Deal
£850,000 from Big Society Capital | £1.35m from
Panahpur and the Joseph Rowntree Charitable Trust

17. CASE STUDY
Burton Street Foundation| The Social Investment
Business
£560,000 loan and £715,000 grant package
£1.5m refurbishment of their Victorian property
which now houses over 50 charities and services.

18. CASE STUDY
S o c i a l A d Ve n t u r e s | T h e S o c i a l
Investment Business | Local Partnership
Spin-out from NHS Salford offering well-being services to the
city’s most hard to reach groups including elderly people with
learning difficulties, asylum seekers and refugees, drug and
alcohol users and people suffering from mental health issues.
The Deal
£35,000 loan and £75,000 grant from the DH Social
Enterprise Investment Fund.
Impact
66% owned by staff and service users and 260% increase in
income. 40% of their income is from outside the NHS.

19. CASE STUDY
HCT Group | The Social Investment Business
£3m loan from Futurebuilders England
From a handful of volunteers HCT now turnover
£26m with a fleet of 370 vehicles.

20. DID YOU KNOW?
Social enterprises are outstripping
SMEs for growth
58% of social enterprises grew last
year compared to 28% of SMEs

21. What this Government has done
for social investment
Increase the supply of finance for social investment
Big Society Capital | Business Finance Partnership
Stimulating and supporting demand for social
investment
Investment and Contract Readiness Fund | Social Incubator Fund |
Community Shares Unit
Improving the legal, tax and regulatory environment
HMT review on financial barriers to social investment | Red Tape
Challenge on social investment

22. SOCIAL INVESTMENT
FORUM
socialenterprise.org.uk/social-
investment-forum