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Adventure Capital Fund investees see 160 per cent growth

Finance | Vibeka Mair | 7 Jul 2009

Charities supported by the Adventure Capital Fund increased their incomes by 160 per cent over the last six years according to an independent evaluation by London Metropolitan University.

The massive income leap from ACF-funded organisations eclipses the average growth of 19 per cent for similar-sized charities.

Futhermore, ACF investees, who receive a combination of loans, grants and business support, also saw a 62 per cent increase income in the three years after they received their investment, compared to an average rise of just five per cent for similar sized charities over the same length of time.

Stephen Thake (pictured), reader in urban policy at London Metropolitan University and leader of the report, said the findings proved that through social enterprise, community-based organisations can become more sustainable. However, Thake said although it was working well a lot of organisations that ACF was set up to help were not applying for grants.

“If the ACF model is to achieve its full potential," he said, "There needs to be a better match between the long-term commitments that community-based organisations are asked to take on, and their ability to secure adequate revenue streams.”

Stephen Bubb, chair of ACF, added: “ACF was launched as a bit of an experiment, hence the idea of ‘adventure’. There were many people who questioned whether community groups would be interested in investments consisting of a mix of loans and grants.

“This independent evaluation demonstrates these people were clearly wrong. It proves the case that we have been able to contribute to tangible social change, which is why we’re looking to attract more and more funds to enable us to have an even more far-reaching impact.”

In April 2008, ACF won the contract to manage the Futurebuilders fund, a £215m fund investing in service delivery by third sector organisations.

ACF has also recently been appointed to deliver Communitybuilders,  a £70m government programme for investment in community-led organisations looking to develop long-term viability, and the Department of Health's £100m Social Enterprise Investment Fund.

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