Share

Big Society Capital invests £3.1m in four social investment projects

Big Society Capital invests £3.1m in four social investment projects
News

Big Society Capital invests £3.1m in four social investment projects

Finance | Vibeka Mair | 28 Dec 2011

Big Society Capital has agreed, in principle, to invest £3.1m in four social investment projects, including the Social Stock Exchange.

The investments have been agreed by the Big Society Investment Fund, an interim committee set up to make investments on behalf of Big Society Capital, which is set to open early next year.

The four organisations which will benefit from the money once the contract has been signed are:

  • FranchisingWorks, which will receive a £1m investment to help long-term unemployed people set up their own franchise businesses
  • Triodos Bank, which will set up a new payment-by-results initiative using its £500,000 investment to improve educational, training and work outcomes for vulnerable young people in Merseyside
  • Community Generation Fund, run by Finance South East, which will receive £750,000 to set up an initiative to create community-owned social enterprises within deprived communities. These will offer affordable, 'green' energy and reinvest profits in the neighbourhood
  • The Social Stock Exchange, which will use its £850,000 investment to set up the world’s first stock exchange for social enterprises, to be located in London and improve access to capital for social entrepreneurs

It brings the total amount of investments by the Committee to five. Earlier this year, the Private Equity Foundation received the first investment of £1m. Some £500,000 of this will be used to fund a social impact bond, while the other £500,000 will be used to underwrite efforts to encourage a further £1m in investment into the social impact bond.

John Kingston, chair of the Investment Committee which agreed the funding, said:

“We’ve been impressed by the strength of the deal-flow under the Big Society Investment Fund. And I'm confident we'll be approving more investments in early 2012, to help build and grow the social investment market here in the UK.”

The Big Society Investment Fund will consider more proposals at its Investment Committee in February, where it hopes to make further investments. It is envisaged that this will be the final meeting of the Investment Committee as Big Society Capital is on target to be fully operational by the end of the first quarter of 2012.

Big Society Capital will be a ‘wholesaler’ to social investment intermediaries, and expects to be funded with £100m from dormant accounts and £50m from four high-street banks in its first year. Overall it expects to have £600m of committed funds - £400m from dormant accounts and £200m from high-street banks, over a four-year period. 

It has been recently granted state-aid exemption by the European Commission. The wait for authorisation from the Commission, which had to determine that it would not distort competition, had delayed its opening. It is still awaiting authorisation from the FSA.

An Investment Committee within the Big Lottery Fund, which holds the dormant accounts, has been making investments to social intermediaries on its behalf in the meantime.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Study finds that men donate more to charity when the fundraiser is an attractive female

17 Apr 2015

Men donate more to online fundraising pages where the fundraiser is an attractive female, and donate competitively...

Legion condemns poppy use on Ukip campaign advert

17 Apr 2015

The Royal British Legion has said that it is working to make sure that its poppy is “never again”...

Oxfam trials tap-to-donate technology

17 Apr 2015

Oxfam GB is running a trial of near-field communication technology to allow supporters to both donate...

National Theatre's first chief executive quits citing problems with leadership structure

17 Apr 2015

The National Theatre's first chief executive, Tessa Ross, has resigned after five months at the organisation,...

Legion condemns poppy use on Ukip campaign advert

17 Apr 2015

The Royal British Legion has said that it is working to make sure that its poppy is “never again”...

MoJ stops short of formal investigation into PCC who awarded £500,000 to her own organisation

17 Apr 2015

The Ministry of Justice has said it is not launching a formal investigation into Northumbria police and...

Oxfam trials tap-to-donate technology

17 Apr 2015

Oxfam GB is running a trial of near-field communication technology to allow supporters to both donate...

Ice Bucket Challenge effect brings down average online donation amount

15 Apr 2015

The average online donation fell by 8.6 per cent in 2014 to £63.69, according to a survey by fundraising...

Education charity UCAS broke electronic marketing rules, says Information Commissioner

9 Apr 2015

The Universities and Colleges Admissions Service broke electronic marketing rules because its admission...

Join the discussion

 Twitter button

@CSFinance