Investments  

Big Society helps launch social investment body

The chief executive of Big Society Capital, one of the Council’s founders, said the initiative will focus on projects that have “potential to transform the social investment market”.

However, he recognised that the UK market for social impact and social investment is still nascent.

As such, the council will spend the next six months – until spring 2014 – focusing on improving the understanding of social investment market products, and the specific investors needed to finance them.

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Mr O’Donohoe added: “There is a lack of information in the market about how to deliver the right kind of investment products to attract investors, and the industry must work together to commission research to help us meet this challenge.”

The founders of SIRC are Big Lottery Fund, the City of London Corporation, Big Society Capital, Citi and the Cabinet Office.

The Council will work as a co-ordinated initiative that draws research commissioners from key organisations in the social investment market.

Its aim is to help advance the UK social investment market by generating practical insights for the benefit of social sector organisations and investors.

Adviser View

John Ditchfield, managing partner of London-based ethical IFA Barchester Green, said: “There is already a lot of research, and I don’t know how much interest there genuinely is from investors and advisers. There is a huge compliance risk for advisers, too. These products are not listed, not on platforms and not daily-traded.”