Triodos has raised £900,000 in private capital for a social impact bond which mixes debt and equity. 

The social impact bond will see the charity St Mungo’s support 400 rough sleepers in London.

Social investor CAF Venturesome is the largest investor in the social impact bond, investing £500,000 the rest of the investors were retail investors and a charitable trust.

St Mungo’s has also invested £237,000 in equity into the social impact bond. Dan Hird, head of corporate finance at Triodos, said it was an interesting structure for a social impact bond to mix debt and equity.

"There is shared risk," he said.

The social impact bond will run for three years and if it meets prescribed outcomes investors can expect a return of 6 per cent per year.

The value of the whole contract, which is run by the Greater London Authority, could be £2.39m.

This article was amended on 14th December 2012.