InvestmentsApr 9 2014

Social impact ventures gain from advice, finds report

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The 30-page report, Ready, Willing and Able, written by the Boston Consulting Group, revealed that grants worth £815,144 had been offered through the £10m Investment and Contract Readiness Fund (ICRF), managed by the Social Investment Business and funded by the Cabinet office.

The deals included a £10.1m loan from a UK institutional pensions investor to provide free daytime solar energy to 2,300 social homes in Sunderland, and a £5m bond issue to ensure that the London 2012 Olympic Aquatic Centre and Copper Box arena are available to local residents.

The report suggested development of the social sector has been hampered by social enterprises lacking the skills or experience to raise investment or compete for public sector contracts. Also, according to the report, many have been unable or unwilling to pay for specialist support.

Adrian Brown, co-author of the report, said: “The ICRF is a great example of the UK leading the world in social investment, and its success to date should be celebrated.”

Deirdre Davies, director for Deutsche Bank’s asset and wealth management’s private equity team, added: “Impact investing has the potential to become increasingly attractive to mainstream lenders and finance providers.

“The success of these ventures, we hope, will promote even more investment and, in turn, help charities and social enterprises compete for public service contracts.”

Adviser view

John Ditchfield, director at London-based Barchester Green Investment, said: “I think social investing is a positive force in the UK economy, putting much needed funding into socially useful businesses and the non-profit sector specifically.”