The European Investment Fund has made its first social investment into a social enterprise growth fund run by the UK's Bridges Ventures.

It’s the first step in the European Investment Fund’s (EIF) recent confirmed commitment to the social investment market.

In October the EIF announced its intention to launch a social investment fund early next year. The European Investment Bank, the bank of the EU and parent of EIF, will reportedly provide €50m as a cornerstone investment for the European Social Innovation and Entrepreneurship Fund, which is also raising funds from private investors.

EIF’s investment into Bridges Ventures Fund III, brings the first round of investment into the Fund to a close at £72m.

Existing investors in this Fund include Cooperative Insurance, HSBC Bank, 3i,  Merton College and the R&S Cohen Foundation.

Richard Pelly EIF’s chief executive said: “The Bridges Ventures team has successfully supported enterprises in the social and environmental sector in the UK over many years and has helped them grow and develop. As the single largest investor in the first close of Bridges Ventures III, EIF will pursue a key European Union objective to develop social entrepreneurship."