twenty catalytic investments to grow the social investment market

8/6/2019 Twenty catalytic investments to grow the social investment market

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TwenTy caTalyTicinvesTmenTs To

grow THe socialinvesTmenT markeT

Joe Ludlo and Jonathan Jenkins

THE BIG SOCIETY FINANCE FUND


2/38

ParT 2: sUmmaries oF TwenTy caTalyTic invesTmenTs 2

About NEStA

nesTa th Uk t dpdt xpt h t

th ut j d h. it bd b

dt, udd b th nt ltt, d t pt t t t th

t txp. nesTa d d t d d ut t

thuh bd xpt p, t h d tt

-t p.

.t..u

About PANAhPur

Phpu th-bd tut hh h t d th tt t-

t t. it t dp 100 p t t pt t pup,

t t ft ut-d pp tht t d.

About unLd

Ultd th d pd uppt t tpu d th

t uh t th d. w u 1,000 ddu th Uk

h thuh u ad p d pt uqu d b

t dt th ddu.

Ultd pd pt p u dt ud up t20,000, t d, t d pt uppt, tp u

ut tpu t tt-up. w uppt th th tbhd

tu t -up; b thp bt t d tt

pptut th 50,000 - 1 ; d ttd t dp

-t uppt t t th h d hp t d t.

About thE SErIES

Th pubt th tht t ut ht h d but

th tt t thuh th B st F Fud t ut

tu d t ptt th.

Also in the seies:

Understanding the demand or and supply o social fnance, n Phthp

cpt d nesTa.

Investing or the Good o Society Why and How Wealthy Individuals Respond,

Fb Fudt th ip mori d nesTa.


3/38

ForeworD 3

One o the most pressing questions acing a developed country like the UK is how to put our considerable

resources to work in innovative ways to address major social challenges.

These challenges, rom social exclusion to long-term ill-health, and rom demographic change to climate

change, are growing. But the ability o our public services and civic society to respond is too oten

constrained by straitened public nances or by institutional inertia.

There is widespread agreement that innovative approaches hold the key: shiting our eorts rom treatment

to prevention, and replacing central control with the energy o empowered citizens and communities.

Social investment can help us achieve this. By nancing new approaches, increasing the diversity o

provision, and allowing money to be diverted rom the symptoms o social problems to their causes, it helps

innovation take root.

The Governments enthusiasm or social investment, exemplied by their establishment o the Big Society

Bank, is to be welcomed. We are excited to see the realisation o a project envisaged 11 years ago when the

Social Investment Task Force began its ground-breaking work.

The Big Society Finance Fund is a practical contribution to this project. Working with Panahpur and UnLtd,

two o the UKs leading social investment charities, we have constructed a portolio o pilot investments to

demonstrate the kind o products and services that a thriving social nance sector could enable. Alongside

the portolio, we are publishing two substantial pieces o research, looking at UK investors interest in social

investment, and the demand or nance among social enterprises and the organisations that serve them.

We hope that the Big Society Finance Fund, through its portolio o projects and research base, oers a

helpul practical contribution to the development o the UKs social investment market.

As always, we welcome your thoughts.

Stian Westlake

Executive Director o Policy and Research, NESTA

April 2011

FOrEwOrD


4/38

eXecUTive sUmmary 4

NESTA set up the Big Society Finance Fund

in August 2010 to prototype new orms o

social investment. By backing innovative

investment products, the Fund hopes to catalyse the

social investment market, and to demonstrate the

role the Governments Big Society Bank could playin the uture.

With our partners Panahpur and UnLtd, we issued

a public call or proposals, generating a wealth

o inormation about the real need or capital in

the social investment market today. Our resolutely

practical approach shines a light on the actual state

o this emerging market.

The Big Society Finance Fund has supported

the development o 20 pilot capital-raisings by

social investment intermediaries. This exemplarportolio, set out in detail in this publication,

was chosen to illustrate the demand or

dierent types o capital in the social

investment market, and the ways in which

this demand can be presented to attract

investment.All o the projects demonstrate the

benet that a catalytic, strategic investor can

bring in getting new social investment products to

market and in leveraging signicant amounts o new

investment rom private and charitable sources.

Alongside the Fund, NESTA commissioned research

into the demand or capital (conducted by NewPhilanthropy Capital) and the appetite or social

investment products amongst individual investors

(conducted by the Fairbanking Foundation with

Ipsos MORI). These pieces o research are published

in parallel with this document.

Taken together, the research and pilot investments

suggest the potential to grow the supply o capital

or social ventures substantially. The projects in the

portolio provide examples o how small sums o

catalytic unding deployed in innovative ways can

leverage much larger sums to help social venturesgrow. The project also shows the diversity o social

ventures and the intermediaries who nance them.

However it is clear that these pilot investments

and the social investment market as a whole

are in their early days social investment is

an emerging market. It needs support to grow

to scale through product development and or

intermediaries to develop a greater track recordand sustainability. The investment that is needed

to catalyse the growth o the social investment

market is development capital at risk, uncertain

o returns, but with a clear strategic objective o a

stronger market able to match investors to social

ventures on appropriate terms.

Our experience shows that this emerging

market or social investment needs a

development bank a strategic investor whose

objective is the development o the market. The

Big Society Bank is ideally placed to be such aninstitution, making strategic investments to:

Ensure capital is available to social ventures

across the organisational liecycle, refecting

the needs o the dierent business models in

the social sector and oten modest nancial

surpluses generated by social ventures.

Catalyse capital raising rom a breadth o

investors commercial institutions, charitable

oundations and individuals by supporting

the development o appropriate investment

products.

Develop market inrastructure the pieces

o the jigsaw that enable appropriate and

timely deals between social investors and

social ventures, and support their advisors and

intermediaries to operate viable businesses.

A strategic investor can operate with a modest

internal inrastructure. The Big Society Finance

Fund has acted as a und o unds. There are similar

models already in operation at scale such as the

the European Investment Fund, a strategic investorseeking to catalyse greater investment in SMEs

in Europe. This sort o structure is appropriate

or a strategic development institution because

EXECUTIVE SUMMArY:

wHAT DOES THE SOCIAL

INVESTMENT MArKET NEED TO

CATALYSE ITS DEVELOPMENT?


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eXecUTive sUmmary 5

its primary means o achieving its objective is

deploying capital, including investing to build

intermediaries that deliver the necessary market

inrastructure. Many o the critical pieces o

inrastructure or unctionality exist in the social

investment or mainstream investment markets

already, so they can be drawn upon by the investor

when needed and do not need to be recreated in a

new institution.

The evidence rom the pilot investments

suggests that a development bank will

fnd it difcult to meet the needs o the

emerging social investment market and deliver

rates o return on its capital that might be

considered market-rate or commercial.

The pilot investments typically require patient,

high-risk taking capital, and the returns they areoering are oten low. This implies that such a

development bank would see erosion o capital in

some segments o its portolio, especially when

capitalising intermediaries and unding product

development. While expectations on return need to

refect the reality o the social investment market,

commercial discipline will be essential when making

investments, so that money is used eectively and

strategically.

Experience rom elsewhere tells us that

market development will not be ast andis likely to involve change over a decade or

more. This in itsel is an argument or capital to

be preserved, i.e. used or social investment and

recycled. But a sophisticated asset allocation will

need to be employed that nds a balance between

preservation or uture market development and

meeting the needs o the social investment market

now. An oversupply o capital, particularly on terms

that currently cannot be serviced by the social

sector, could quickly lead to mission drit as the

pressure mounts on the institution to invest.

The Big Society Finance Fund has engaged thecommunity and social investment market and

generated a portolio o exemplar investments that

could be nanced in the near term, kick starting

the long but vital journey o growing the social

investment market.


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conTenTs 6

CONTENTS

Pat 1: l th B st F Fud pt 7

Pat 2: su 20 tt tt 16

Endnotes 36


7/38

7ParT 1: learning From THe Big socieTy Finance FUnD PorTFolio

PArT 1:

LEArNING FrOM THE BIG SOCIETY

FINANCE FUND POrTFOLIO

1.1 Intoduction to NESTAs ok in socialinvestment

Th pb th Uk ubtt. w h d hh t dd t h,

pput, d h hth pb.Th h d t ddd d hh t d. Thtdt pph pub dd t h p, th pt tht pub pd.

nesTa pp t xpt t d t d pub d ddu p d. Futu d t pt th th pd t pb,d d t d th xp t t t, tp d th -tdt pd pub .

i d th tu t ud dd th h , tht utb d t thUk, th d t b b t ttpt d d pppt d tth ht t. i d t h th, d ut, - tt t.

nesTa h b t

uppt th dpt th ttt, xp b:

m t tt tp tu pt ud: Bds etpu Fud d B iuit s etp itt Fud.

suppt tu td th t tht tut, ubtd t t t. Fxp, h ubtd t

Ptp d Thpub, d pdd pt th dpt tuppt ut tp, th yuFudt Hth luhpd d Ultdtt d , Ultd adt.

add th tutu b ttt, xp uppt csFipt it s etp: Th Tx it d thBt w d Btht t dp pppt ut

th pt d uttt.

i th pt , nesTa h uhd t tt t bud th tt t:

ou s vtu itd Fud ut th p t udht tu td, t dt d uppt uht d u t bttudtd th uppt th tu t d utbb.

Th B st F Fud tbhdt pttp ptt tt th Bst B d t ht dd p th d b tht t t th dpt th tt t.

1.2 The Big Society Finance Fund

nesTa t up th B st F Fud auut 2010, d t ud ap 2011 t th uh th Uk gt Bst B.

T t p th d b thdpt th tt t dtd, d h t dd th d d :

n Phthp cpt (nPc)

d t t ut th tu utd utu dd pt td d t dp udtd th x th Bst B d t uppt.


8/38

ParT 1: learning From THe Big socieTy Finance FUnD PorTFolio 8

Table 1: a u th 22 pp td uth dpt

Social InvestmentOganisations

abud

B iu it 1 th

m cp

B iu it 2th Pc

caF vtu

cht B /it gd

cut ld &F

cut shUt

ethx ltd

F F

F suth et

F lp

ipt at

lhcut

Fudt

l Pthp

ld rbudst

o chuh 100 U

r 1

r 2

shtbuPthp

sd stud

s F ltd

s stexh ltd

Shot desciption

a d td tt pt tht th pub t t d

bt b .

a xh-td tt ud tht t bth Uk xh-td d -t bu hth, dut d hu.

a tt t pt t tp t bd pt b ut tt d p tt t DwP.

Th caF ipt Fud Uk t pt tt pdut tht t dt ht

d tp.

Th cht Bd P ht tu ut t tt ptuud d t ddu d ttut.

a ud t uppt cut ld Tut t dp db t hu.

a Fud t uppt qut tt ut-d tp.

a b-bd t p th t d tp, t

ddu t t bu th .

a -up F F uu p bu t t h dxttt d ld.

a t zz ud tp -t d bu t d bt .

g t uu u tt t pt, th

d t xudd ddu b b bd u tt ttut d ddu.

exp t Us d-dd ud tutu tt th Uk.

ntu cu d d pjt lh (t b dd Uk-d)

h th upu d-bd tp t t pt ut.

a utu d tp p-ut ud t uppt dpdt, t dtp t-d p-ut pub bd th uth pttt .

a h pt h u qut h t uppt th gt

tt tht 75 p t ub h dt h b 2020.

a ud t uppt huh t t xp tpu, xd u huh

bud u pppt pdut.

a 2 ud d t ub udt t-bd ut h u th tt u 10 pp t th ut.

a s etp a ud t pd tt d ddt th , -h d

t xpd bu t /uh tp.

Th Fhw l Fud ud tht hp upd pp tt up hbu b puh h th bh ut th bu b tp th .

sd sh th ubt bu.

Dpt uth pt bd hth.

a pub t t tp, pup bu d tutuh bd t t d t pt t t t.


9/38

9

Fb Fudt th ip mori d t dut p quttd quttt h t dt thtp ddu t d ttpdut tht t b ptt th

th th t uttt.

Bth p h pubhd pth th dut d h d thd th h th thpp t th ud tht .

i nb 2010 d pub pp tu td h ut p t pt t. ou t uht p, b d

qu-t-d d h th Fud upptud utp ddt pt.

w d 89 pp, 45 tt th Fud. Th ub, x xt tt bdd tt, hd th ptt th tt t th Uk dhh t pt d tt. a dpdttt d p utd,pt xpt th d t d hd b s Jh g, t tpp tt t ud.

w td 221 pt tt pp uth dpt. Th pp td bth th qut d:

T utt th tu dd ptth B st B ut.

T utt th t ttht ht b pb.

Tb 1 t u t t pp, dPt 2 th pubt t ut dtbut th pt tt.

1.2.1 what next o NESTAs Big Society FinanceFund?o, b tht th u ptpt 20 pp th t t 12 tt tht ud b d thth xt x th, d tht t th udt t t t tht u ddttt.

1.3 what does the Big Society Finance FundPotolio tell us about demand and supply inthe social investment maket?

Th d d tu

t t pb u t u p, thuh tpd ht t ut up. Tht h d dth t ftd th B stF Fud pt.

1.3.1 Thee is demand o capital acoss theliecycle o a social ventueTh pt- pp th ptp th tu, tt-upd pt, thuh t th t

tut h - t pub d d t dd. Th pp ft th d pppt thtth th ud t th u ud, .. xd t ttt ud dbt, xp b d b qut. Tb2 utt th.

1.3.2 Catalytic capital can unlock much lagesums om thid patiesw d pp h tt th Fud ud b th dttht u tt htb, d ddu t. Th tdpt utt tht tt t, t dpt, u t tt t ddt ud.Tb 3 bd nPc2 d xp dtt u pt b td, dth tt t tt th pt th pup. Tb 4 hth xptd th B st FFud tt utp, t, .15 t u tt t, thuh th d t b

pt b utp .

1.3.3 Expected etuns on capital ae lo giventhe isks involvedou th nPc th B st FFud, th d bnesTa th yu Fudt,3 uttht th jt xt t tu ut d t pt bth t t (t tht th pt t d t utpt, .. d pt t sme).

i ddt t th upp pt tt tu, th B st F Fudh dttd th d d pptut tt th dpt th tutu

ParT 1: learning From THe Big socieTy Finance FUnD PorTFolio


10/38

10

th tt t. Th u tht bd td pd th t b tu t pppt pt td t-t t. Butth Fud d nesTa d xp thd h tht th jt tutd -t tuth. s dp tutu,

tt t t b b u,t up d. Th tt t qu ptt pt t t bth t -djutd t.

Th ud h ud pptut t tt, but th td. a tt t th Bst B ut b u t t t ttt d d d ut td th p. Udt th pb b tt pt- thut

d ut thd pt t.

Tb 4 h th d tht th Bst F Fud pt xpt tp t th Fud d t thd pt t

dbt, qut d phthp .

a u t ddd b th Fud th t d tu d thut t th thtbth pt t d b,-djutd t pt. Th t bhd t th t. i th b pppt p, tu t

px pb tu t d t d ptt pt, th qut- d t b ptu dutd p th t .w hud td btt p ut. H th pt d td btd d tt d dd t ft th ut tu th tt t, uttd b th hd pttp th B st F Fud.

1.3.4 Some o the pilots ae ocused aound

specifc causes but thee is a need to suppotpoposals that have a geneal social pupose tooTh B st F Fud pt hh tu td b pt t dd p

ParT 1: learning From THe Big socieTy Finance FUnD PorTFolio

Table 2: Th pt p th tu

Liecycle/Financing Need

stt-up d -t ud thd

gth pt

it Pub o

sd t

w pt ddu d tp

at

Pilot examples

sd stud s iubt

F suth et d r Bu ac-tt Fud

Fh w

l Pthp

cht B

r cut sh Udt Fud

B iu it ltd itt Fud

ethx

s st exh

F F

F lp

caF vtu

cut ld d F

1 chuh 100 U

ld rbud st

abud


11/38


12/38


d. But, Tb 5 h, ub td qu pt pup. i th bu th dd upp th dd ut d t dtt uthb u ud t b b, .. ttt

bu t tp t. ith , th td dp ptt p tutu t t pup.

w th h dutd bFb th ip mori5 th ddut tht d th p ut b dd ptt, d thtth th th t t udtdth p ht tp budd. H, th pt pt ut

tht tt t, th B stB, d t b b t t u-ppp d t uppt puppp tt tbut tt dpt.

1.3.5 Intemediaies ae ocusing thei capitalaising on individuals, and chaitable o publicinstitutionsTh pt tt th B st FFud pt h dpd dt t t

ddu, htb udt, pub bdd ttut t.

m th pt th B st FFud pt xpt t ud utp t t. H, u th p tt t t Fu1 h t p ud ddu d htb pub ttut.

Th pt b t tt t th t, but th pt d utt

udtd t d h th t d th b dtt bt th t.

Fb Fudt th ip mori

Table 5: cu ddd b th pt

Cause

Upt

l ut

F xu

Hth

chd d u pp

sutbt d b

Hu

g pup

Examples om the potolio that demonstate this

Fh w

r cut sh Udt

cut sh Ut-mthd itt sh

1 chuh 100 U

F lp

F F

s F

l Pthp

abud

ntu cu

cut ld d F

ld rbud st

caF vtu

F suth et/r Bu a c-tt Fud

cht B/it gd

ethx

ipt at

s st exh


13/38


Figue 1: Fud b p tt t, b u

Individuals

Charitable/public institutions

Commercial institutions

49%

32%

19%

Table 6: H pt pp t ddu t

Investo segment

Hh t th

ddu d

m afut, thhh th

m afut,

th

Point o appeal

s tt thd

p t p th.

e dpt, j ub.

gtt d d hp th

t t b bu-.

w th/

gt.

app t th u, ut

t, pt t.

Pdut t

d.

s t h -b.

chtb tt, sp u.

Examples om the potolio that illustate this

B iu it ld ltd Fud

s st exh

ethx

r cut sh Udt

F suth et/r Bu a c-

tt Fud

Fh w

ld rbud st

s F s ipt Bd

cut ld d F

ethx

cut sh Ut

cht B/it gd

F lp

B iu it ld ltd Fud

abud

caF vtu

1 chuh 100 U


14/38


h6 th B st F Fudh hhhtd th ptt t tt b hh t th ddu dth fut th th 100,000 tt t. Tb 6 h th thqu ud th pt t tttddu t, ft tht dtd th h. it ppttht th tt t d t ptu dp th ut t pdut pppt t th dttt th u t. Futhth pdut dpt t bdd.

Th pt pt utt h

tt pdut d pt bdd t pp t ttut htb d, h Tb 7. Futh h,d b ct ld cpt, Bltt d ct Bd Tut, b udtb c s7 t xp dt thppt ttut t ht tt pdut ud b tht.

i u, th B st F Fudpt h th dt pt qud

b tu d th td h th. a tt t d ttp pd -t, ptt pt d tt d t tthtd pd t tutu t

th t. itd d t dp d phtt th udtd ht pp t th dt t tth tt. a du th xtt, th B st B p t t th t dpt d.

1.4 what do the pilots tell us about thestategy, stuctue and asset allocation oThe Big Society Bank?

Th B st F Fud h upptdth dpt 20 pt tt. Thh d th pt tth h hh

d t th ttt d th ptt t th upp pt tu ubtt.

1.4.1 An emeging maket that needs patient,at-isk development capitalH, t tht th pt d th tt t h th d th tt t , t, t.

it d uppt t h t thuh

pdut dpt d pdut t d. id , th td th t hudh t d utbt. Thuppt dd dpt pt t ,d ut tu.

Table 7: H th pt pp t ttut t

Investo segment

chtb Fudt

chtb Fudt

chtb Fudt

chtb udtd ttut

c ttut

Point o appeal

sp u tt/pdut th .

l ddt ud htb pup.

w th/ gt.

Pdut ttt .

rb t d

bt.

Examples om the potolio that demonstate this

r cut sh Udt Fud

ld rbud st

caF vtu

s F

l Pthp

cht B/it gd

B iu it exh ltd Fud

F F

Fh w


15/38


w b, th, tht th tt t d dpt b tt t h bjt thdpt th tt td th d upp pppt

pt d d t tu. Th Bst B ud b uh ttut, tt tt t:

eu pt b t tu th t , ftth d th dt bu d th t d t dt upu td b tu.

ct pt bdth t ttut, htb

udt d ddu b upptth dpt pppt ttpdut.

Dp t tutu th p th j tht b pppt d td bt t d tu, d uppt th d dtd t pt b bu.

1.4.2 Catalysing the development ointemediaies is cucialTh B st F Fud pt pth tht th tt t bptd b hh-ptt, but t du td t. it pttht t dpt tt t t th dt, hh ud b dd dttd b t tt. Th h uppt dpt b th Bst B tht thuh d t th td. m th t p th tt t tutud xt th tt t,

t, th th t tt t.Th b d up b th B st Bh dd d th t hp t dpth t.

1.4.3 A stategic investo can opeate ith amodest intenal inastuctueTh B st F Fud h dd ud ud tutu. s d pt t xp th eupitt Fud tt t t t t tt sme eup.

suh tutu pppt ttdpt ttut bu t p h t bjt dp t pt,ud t t bud th td thtd th t tutu.

1.4.4 we must be ealistic about the pace omaket development and the stating point ofnancial etunsTh d th pt tt uttht dpt b d t dut

t t th d th tt t d d t tu t pt tht ht b dd t-t . Th pt tt tpqu ptt, hh- t pt, d thtu th . Th ptht uh dpt b ud pt t t pt,p pt td dud pdut dpt.

wh xptt tu d t ft

th t th tt t, dp b t h tt, tht udt d tt.

exp h t u tht tdpt t b t bd h dd . Th t ut pt t b pd,.. ud tt d dth th td. But phttd tt d t b pd tht d b bt pt utu tdpt d t th d th tt t . a upp pt,ptu t tht ut t bd b th t, ud qu dt dt th pu ut thttut t t.

1.4.5 A eal need o a stategic investo ith amaket development objectiveTh B st F Fud, thuh th d pt tt, h h:

a dd pt tu dth td h th d tt tt t t pt.

Th d t t tdth tht th tutu th tt t p.

apptt tt tddu, but th d pdut t btd d utd pppt

.

Th B st B h t t p dd th th .


16/38


w pt b u f th 20 pt pjt ubttd t th B st F Fud

f tt.

PArT 2:

SUMMArIES OF 20

CATALYTIC INVESTMENTS

Abundance

Taget Investosmb th pub

Use o FundsFud td p b pjt.

Catalytic investment equested om the Big Society Finance FundTh p ud uppt t abud b b d pdtt pt t th .

Contact detailsk Hd 07812124420 k@budt. .budt.

Size o investments/loans to social ventuesTh t b up t 2 h. l pb.

Type o capital a tt 6,000(b tx) p th tt b th Uk th

th tt (ud 20

).

B pd ubt t th d tut, pt

b .

itt tt tt 5 th bt t bhd b d ud pb.

risks Th tu d t u th d thb, d b t

td b pt u

th th.

e utd db ubdd h p t

p.

a th tt, th d th pbt xt xt tht th tt b t.

abud: d td tt pt tht th pub t t d bt b .


17/38


Big Issue Invest I

Taget Investosittut (70 p t) d t(30 p t) t. Th udud b td t tt tht t dd

udt d th t,ptu th th dt tt td ut ud

tt tut.

Use o Fundss-d bu th Uk ud bth td

bu (tp tt t xh)d utd tp.

Catalytic investment equested om the Big Society Finance FundDpt ud t ppt d uh t t b th ud t t. itt pt t

tt th t pt t.

Contact detailssh Ft 0207 526 3431 h@but. .but.

Size o investments/loans to social ventuesgth pt tt th 500,000 t

2 .

Indicative temsitt tut udtht qut puhd thh p dttdt xh iPo

thuh h puh thd t. addt,t t pd

dt tt th ctb l nt ru

Ptpt l.

riskswud b d hh-tt pptut ut td tbhd.

B iu it pthp th m cp: uh td tt ud.

Th pt ud Uk xh-td pup bu tp th tptt th 15 d utd bu.


18/38


19/38


CAF Ventuesome

Taget InvestoscaF Tut t; Hh nt wthiddu

Use o FundsTh b ud t th hf d pt d d du-zdht d tp.

Catalytic investment equested om the Big Society Finance FundTh Fud u ptt pt/t t db pt. Th B st F Fud td th pt pd ud b uh . a th Fud tbh t t d, t dp t bth t t d t t, thu pd ut d t dt

pt t tu.

Contact detailsPu ch 03000123256 ph@. .tu.

Size o investments/loans to social ventuesF 25,000 t 250,000.

Indicative temsUud t ht d tp th htbpup, pd th

t , d tp t tt t 6 p t.

risksTh Fud t h pt. it t th phthp pt (t 0%

tt t). s pt bdtd b th t, dth u ud t uppt t b t. Th

ut tu (dth dut), butvtu 10- t d

ut hh t.

caF s ipt Fud.


20/38


Chaity Bank

Taget Investosmt pt ptdb sri ud, th d th t, d pub d

pt Fudt btt -tdtt pt.

Use o FundsT uppt ht d tp td th t.

Catalytic investment equested om the Big Society Finance FundF th B st F Fud ud pd t tt t th t u d

udp th dpt th p t pd bd pt tht dd t b ud buu ht d th hh pb d b.

Contact detailsg Bud 01732 774040 bud@htb. .htb.

Size o investments/loans to social ventuesTh p uttd dbt t tht x u u th t d th pjt-p d

t dt f.

Indicative temsFxb pt p 1 b ut h dt th

ut, tut d d.Dt 25,000.eh bd b td tpd qudt, p d

p. it tth p ptpt.

risksTh p u udtd d tbhd pdut. Th t

t tutd thpptu h u.

cht B mdu T nt P d b it gd cic.


21/38


Community Land & Finance

Taget Investosit d tht d ud

10 b td. Th Fudud ud t ub-tt tut, th d

d t t t ttut.

Use o FundsTh b d t clT d th ut-d hu pd. Th Fud ud

-t t b t - t t t .

Catalytic investment equested om the Big Society Finance FundB st F Fud uppt uht t th u 1 hh tt b pb. Th tth th th u b pt ud t b tbhd

t dtt tht th pt pt.

Contact detailsBb Pt 01409 281875 [email protected] .utdd..u

Size o loans to social ventuesa clT tp b ppxt 100,000 pt h t dd pd

t .

Indicative temsa 10 d ud

ppd hh dt tut t b upt 6 p t. rtu t htb

tut d th t b 2-3 p t. s tu b hd b pd h pp tht

uppt d pt ht ut b th pt

d hu t t.

riskscdb ptt pdd

th th p dt ppt uh hh b td th

u ut. Th td th pjt u butth ud t b pt bt15-20 clT thu th pt pd

uu t.

cut ld & F dp ud d t hu pdd b

cut ld Tut (clTs) d th ut-d hu pd.


22/38


Community Shaes

Taget InvestosF td th d tt pt b, phthp dhtb ud, d ddu

thuh th t t-p rtt Fud. Thud tb qut,

d b b thuh td t th tt

ub. rtt ud b ud t th

pdut: th P Fud,Udt Fud d subptFud.

Use o Fundsc-pt d ut bt t

t: ut b, utd tut, t t, ut pt,ut upptd utu, ut td ut t. Th t b

qut ut thuh th

thdb h pt.

Catalytic investment equested om the Big Society Finance FundTh B st F Fud pd dt d pt, tht th pdut buhd utu, t th t-p r-tt Fud t t , tu

p th d pub t tt. atpt dp up t ht t-p rttFud xt .

Contact detailsHuh r/Pt m 01274 491615/0161 246 2960 [email protected]/[email protected]

Size o loans to social ventuesTh pdut: P Fud t th-t

p-tt (up t 10,000 thd b 10,000 ut). Udt Fud t uppt t-bud ut h (udt up t -thd tt ud qud z 250,000).

subpt Fud t pd ht-t

ut h ubpt pd up tth ( z 0.5 ). atpt 30

d , t 120 d .

Indicative temsF tu b th 4 p t t 8 p t,tt th Fsa quttht -pt d ut

bt t tt t th tttt d t th tt.

s tu b t-p.r-tt ud b

th d t t bt-p ut.

risksB h tt thuhrtt Fud, th xpu th d t bdud. Du d td

th udt du d tut hh ut tt.

Hht td thp tt p-tt

tp, hh b ttdt phthp t.

cut sh Ut: c-pt Uk pthp th lt, k Fud d c-pt

d cut F: itdt -pt d ut bt t qut tt ut.


23/38


Ethex

Taget Investosrt t p th

h qut ttt th bu tht phttd t.

a udt, hh t thd t ttd tutth t th bu.

Use o Fundsethx uppt xt th bu t p

th t t thuh th ethx pt, tbt ttt t d pd tht th pd uppt, utqudt pb. ethx b t

d bu t th p t ptt qut pt.

Catalytic investment equested om the Big Society Finance FundTh B st F Fud ud hp b pd th t pt qud t-up t d t u thtethx b tbhd t utb qut t pd tp t.

Contact detailsJ Htz 01865 403303 [email protected] .thx..u

Size o investments/loans to social ventueso tbhd, ethx hd ud 50

tt ud 50,000 pp d tt td qut tt ud 5 t 50 th bu.

Indicative temsidt tu t t

b ud 6 p t, bd ub-dtd p2.75 p t p u pu

ddt pt pt t pd. s tu b ud thuh thqut bu uptd d

th qut tt dt buht t th t.

risksrpt dpdt

th u ethx bu.Th t t xpd dtt th bu td. l

b uud d pt bdpdt ptbt. H b budt d th t

t b ubdtd.ethx b t xptd

t t ethx, pd ddt xt ut.

ethx itt cub ltd: t p pd dtd t qut-ud

tt pdut tbhd dtd p d -pt.


24/38


Fai Finance

Taget InvestosTh t dt tp t th pp qut t h udth d pt d udtd

th t; d dbtt h qu utbut up uu d.

F th qut t hdtd d d d

t hp Hh nt wth

iddu d pt t.

F th dbt h d

d tt b.Th b u t d b d t th tt.

Use o FundsTh b ud t pd b, dbd pb t th

xudd. it pt th d d h, h dd t pb th

t p d d ut.

Catalytic investment equested om the Big Society Finance FundBu t d bu d t dd t

b d t t t d thut t. i th b tx d ut tp tt th BsFF t ubdtd dbt t t dbt hd xpu, d t t th t t tht tb ud th x. o t d but up d

d u pd, t tptd tht th pt t/d up th tt d th BsFF t xt.

Contact detailsF rh 0207 254 1976 @..u ...u

Size o loansa tp F F p bt 500d 850.

Indicative temss t ppd tu 5 p t, bd p th bu t .

B d

t-bd t tu (ut bt 5-6 pt), th - btt .

risksTh t dt dp tht t hh tt. it d tu.

H th pt b

ubtt. Th tt th pt t b utpduth.

F F: 3.25 pt t t p d cDFi t -ut .


25/38


Finance South East & resonance

Taget InvestosTh tt t th Fudud: phthp d htbttut d pt t.Th ppd ud -t

d t bu t, h utt t th -pt

t.

Use o Fundsw t tp tht:

H d db bu d

tht d bth ubtt th d pppt upu/pt t t tqut.

D tt tht h th ptt t ht, pt, pt.

Catalytic investment equested om the Big Society Finance FundF th B st F Fud b pt Fud t b tbhd t dtt p

pt th t h t h th upp bu ud t th tpt, hh b ud t bud udtd th b t th t d h th b d t - Fud.

Contact detailss gd 01276 608510 .d@utht. .utht.

Size o investments/loans to social ventuesTh Fud d -t t ud

t tp th u Fud ttz 25,000 d xu Fud tt z 100,000 th dbt, qu qut d qut.

Th Fud tt b ubjt t t t 1:1

th tt pt t bu .

Indicative temsTh Fud t h thupp th ud tbtu tp tht bth but d d

dupt pt.

it tptd tht tt t ud 10 p t p udb uht. wh d qut-bd, t tptd tht th

tu uht b th pt tt b hh t ft th

td .

risksTh Fud t tptht ft th p tpbu tt, but tht t d pt

tu. Thu th tt b bd tth tp t b t

bu th -ptt.

Th Fud u th tptpt th bu

t h, , b , xp, td t tt t tht bu d tdth tt.

a bu -tt ud tp.


26/38


Five Lamps

Taget Investosr ttut d ddu

ud: chtb Fudt;Hh nt wth iddu; Huat; P Fud; l

autht; nHs/Pub Bd;F ittut.

Use o FundsF lp pt -d t

t p t uud d tt t 50,000 p u b 2015.

ou tt ut xudd ddu th nth et ed. F th 13 d ed, h th th tt th

bt upp d dd db dt, d b u .

Catalytic investment equested om the Big Society Finance FundF lp qu: () uppt dp th bd pptu; d () t tt th bd

t t d th .

Contact detailsg o 01642 608316 @p..u .p..u

Size o loansTh d b F lp 415 d

uud, pd up t 12 th. Th ud t-t dbt d d uppt.

Indicative tems 5 Bd (.3.5-4 p t p)

Tt ut up t 1.5

t

25 500 p t

n att 1

equ tt 25 p t pp t d 2-5

e rdpt (au optt rp)

cpt d (t) t ud

th d tt t xudd ddu nth et ed

risksTh p uud p

t u tt ut dqu dbd dbt.

T :

l pdut pd

d.

F lp h but pt

pdu d xpd t.

Fu xp d t th tt t dp bd dbt.

r t uth pt

pu th nth et th jt ut t bupd d

xudd.

F lp: 3 ut bd u t .4 p t t xp

th t cDFi th nth et ed.


27/38


Impact Assets

Use o Fundswh ud ud t th b

td t sri ud d thuh th ipt atgb ipt vtu (giv) pt. Th giv pt dt thd pt tt bth

dbt d qut t b td t pt tttd pt th giv pt t t.

Taget Investoswth rt ct, Hh nt wth iddu,

Tut d Fudt.

Catalytic investment equested om the Big Society Finance Fundipt at qu t uh th Uk d , , t b . a x t d Priud qud t th.

Contact detailsB mtz 07961 373 385 @btz.

Size o investments/loans to social ventuesTh giv pt ht d 1

d b. it uqu tutu utt thuh t td ptt, thu ddu d udt t

tt pt tt d upht ttt. mu tt ddud udt t b th 1,000.

Indicative temsDaF ud d t pd tu t th

t th dtd d bt tx .o DaF ud ud t tu (t thDaF ut) -100 p t (phthp

dt) thuh t tu.

ipt at: a D add Fud d ipt it Pt dd t d pt t

xu t, d tt pt.


28/38


Local Patneships

Taget InvestosTh tt t th Tp sp

Fud ud: d,bdd tu t, t d pub t, d

ddu t.

Use o FundsTh pup th Tp sp Fud ud b t pdth t t, utu d uppt th

p-ut uth th pub t,t b tp.

Catalytic investment equested om the Big Society Finance FundTh B st F Fud ud pd th dt, pd qu-qut t uppt uth p-ut th tt -t pt pp d p udd b t, t btd d bb tt.

Contact detailsJu me 020 7296 6788 [email protected] .pthp..u

Size o investments/loans to social ventuesTh Tp sp Fud p ttdpdt th t, th d d t

dpt. Th Tp sp Fud ud pd t t d qu-qut 150,000, d p-ut dpd, tptd ppxt

350,000.

Indicative temsTh tptd d

tu dpd th tp t: t d t tt 0

p t tu, but pt uth dut u pp. svc ud xpt dt irr

13.3 p t. c dud xpt dt irr 6.7

p t.

risksTh t t ud:

Fu t d tuthuh u. Fu tu tu thuh

t u, h t p, t.

l Pthp Th Tp sp Fud: p pt pp tt ud

utu d tp p-ut, th uth pt tt .


29/38


London rebuilding Society

Taget InvestosTh H ipt sh hh pt, u, -t

tt pptut. Th ud p t pt ddu dttut t d d.

Use o Fundsi th Uk th 1.2 ub huhd

-dt, pt t h. P quthu d pt upt hth d-b, u u pt d dbtd,

j u b d pu pub . ld rbud st ttub up th ld th t ut d d h t

tdt u.

Catalytic investment equested om the Big Society Finance FundPtt, t qut th B st F Fud ud b th H ipt sh t dbt x d d, ut th t dp uttp th t pt

tt.

Contact detailsn k/su Put 020 7682 1666 .@dbud./[email protected].

Size o investments/loans to social ventuesTh z h tt 60,000.

H, px h h quph d dbt tutu t uth t th ppt, th tt tt

b db dpd up th u thppt. ld rbud st t ttt th 40 p t th u thh qut, pt d xpt

ut.

Indicative temsrtu tt 50,000t 499,000 b .3.5 p t

p th pt pt t thd th t. Th t tt 500,000+

ubjt t tt th ldrbud st.

Qutd tu ud:

pub xpdtu gP t d hptt,

dud t du t bdb xp th 150p d h t uthttd th th, dud

dd , d up t50 p t dut dtb . sroi b

ptd u.

risksl pt tt tt ud t

ppt pt.

Th j t t th xptd t pptdp th pt.

Th b ttd b d f t du

pt xpdtu d th ub t d.

i t pt, th Hipt sh

ppt. eh tt qutb, dtd pt.

Th H ipt sh pd ub h th u d p

d dptt td t t th hth, hu d d. Th ud pt th u th ppt, d pd dp th ppt.


30/38


Natual Conclusion

Taget Investoschtb Tut d

ttut tht pd t dptt xd t utbu. Th tt dd

400. Th t pbbp 20 .

Bu -t bu.

Use o FundsPt b dtbutd t t thuh

lh cut Fudt t up,ht d d u.

Catalytic investment equested om the Big Society Finance Fundit ud pd th t tt t t tu bu t t b tbhd t

hht ubt. w pp th ut Ht lh.

Contact detailsi Pppd 07918667592 .pppd@bttt.

Size o investments/loans to social ventuesTh pp t t th 1 5;

th ut h b 2,800 p ppt.

Indicative temsrtu t th t tb.

Th sroi b ud thuhth ub t d d thpt th th ut

td b h t. w pt t 100 p tdt t .

risksntu cu b th

bu th ut t tu bu t 30p t p u. Th pp

qu ptt t dth t utd t qu tutt.

ntu cu cic tht pd tu bu t th pt b td

dt d tt dtbutd t t ht d d u.


31/38


One Chuch, 100 Uses

Taget Investos chuh bd, D, sd

t.

chtb tut.

Pb ddu.

ittut huh d huh/ut pjt h tz . mdt b

pjt tht

tt -t d ptt t.

Use o FundsTh ud ud b t t huh d utpt pjt, th huh d ut

t dpt xt bud. it

tht th jt pjt b tt ud h, .. t/b dpt, but h ud p tht d t b bdd t

th pjt b. Th jt b budth utp u, .. hp, pt, uth, dut,, hth, t t.

Catalytic investment equested om the Big Society Finance Funda th ud t ppt, t d t h d t d t dtt pu tu tt. Th tu , h, t. a th b d, ud b td hh u ud t th t p. wht th ud hh

t d hh t tu, upt tht uh th t qu t th ut b. Th d tht, t pt th ud b, but th t (bth t dut/udt) uh tht th jt th t ub t ut th.

Contact detailsDd Fd/Jph F j.@huh100u.

Size o investments/loans to social ventuesexptd t t but 300,000, but 25,000 thuh t 800,000 dpd th

utt z th ud.

Indicative temsP 2-3 p t: th pup

t tdu pt hphp t hd b bb. wht th

t p , tt dtd xp, t huh/ut pt pjt t b t ut hh t

tt. it tht tth ut bud t

t b d, tth t h t buud. Th tu bthth z d qut th ut-up tht td, d h tht

p th ud. sp t b dpd t ptu th tu.

risksTh /d t ud t b

ttt t d.Pjt b u dd ppd th pjt

b t th ptp d th u dt p th . it t tht pt pjt t b

but, but pt utb xptd t t th

pd t p th . a tt t th pt dd pt b.

o chuh 100 U Fud: ud ptt, -tt pt huh-bd

pt pjt hh t xd-u huh d ut t.


32/38


resonance

Taget Investos1. chtb tut tht t t

u pp t t

th ut but t t t ttth th ddu d.

2. oth cDFi d pt t t t

th th 20 xu qut

tt iPs.

Use o Fundsit ut bt t th t-bd

ppt uh ut ppt, db/upptd hu, ut /t,ut b.

Catalytic investment equested om the Big Society Finance FundTh B st F Fud ud pd t t t uh th ud t pt z d d

th t bth t th ud d -t p pjt qu t.

Contact detailsD B 0845 0043432 @.td.u ..td.u

Size o investments/loans to social ventuesexptd t t but 300,000, but

25,000 thuh t 500,000 dpd thutt z th ud.

Indicative temsidt tu t t b 6 p t ud z

2 . it hd tu th bttqudt th bu ut

h dt.

s pt b b, but

xp tt

th ud, 300,000 ud uuh th pt t uppt

15 utt dut b upptdthuh dpdt ; 5,000 qt db pb b ut

up d tp; 200 ht utdd; 11 t db

h.

risksTh db ddptt pjt th

t d d d tht b b d. Thxt hb th thuh

d dbt thuhddt ut tt.Th td thpt pjt u but

th th pt ut b pt t.

r: cut sh Udt Fud b ut th b bu p

d pt pp t pd t qu th t ht tu t t thut h .


33/38


Shatesbuy Patneship/Fanchisingwoks

Taget InvestosTh tt t thPt Ph, pt gt

mht, 2011-12 ud B,cDFi, s it.

Th tt t thexp Ph, pt 3-4 t 2012 ud s

it, d s F

ittut t 0.5 t1 h (pb upptd

b uth tt Hnwi).

i th thd, ph (2013d) t bd th tt tu

ut p. i th ,th bd ud b d tt t.

Use o FundsTh Fhw l Fud upptth tt Fhw t db b puh h

ptpt h h th t t th h h th ud th t th pt qud. Th h th b t u th bu, du

t bu ut th th ud d th t h u th tu t bud.Fhw u uppt pp h

dpd ub ut, h t thp upt, d h h p t pt.

Catalytic investment equested om the Big Society Finance Fundathuh th tbhd bu tbhd dut, th d d tutu thl Fud ppt. a t tt d ptt udt ppt , tht t, tht ud b t t th d. Th ud th Fud t d

d jb 3-4 t 2011 d 2012.

Contact detailsPt sh 07737 472296 pt.h@htbupthp. .htbupthp.

Size o investments/loans to social ventuesTh l Fud t h thuhpuh th h th bu.iddu h t bt 1,000

d 100,000. w u th t-td th t, t ddu upt u ud 20,000. w pjt u tt t b 10,000.

Indicative temsw tt 600,000 th pt gt mht

(t puh 50 h )d 1,800,000 th xpph 2012 (t puh 150

h ).

itt b qu-

qut b. F h th

t t ph th b u ddd dpd

p th dduh bu h ; ddd d pp b pd t th d 6. w

t irr 12-15 p t t h t thpt d xp ph th

p.

Th tt upptt-t, jb-t dpt bu d dpd

ub ut.

risksr ttd b:

1. w th pt ddu . s

p btt th th.

2. w tbhddut th tbhdh bu tht httd pjt

th p dduh.

3. Th l Fud th, tht

h th bu,th b -pd thth h d tut t .

Fhw l Fud: a ud uppt th tt Fhw.

Fhw tp tht d hh t p t tupt gt mht b t bu d jb u h.


34/38


Social Finance Ltd

Taget Investoss-ttd pt t.

Catalytic investment equested om the Big Society Finance Fundetbh uu s ipt Bd pb d zb qu h d

dpt ph. F xp, t qu db d ud ptt ptthth d th t.

Ptt pt 250,000 t qud t uppt th dpt s ipt Bd tht thb t t th d t t. s F p th tt ud th tu ud d t th t hth s ipt Bd.

Du th dpt t, th ptt pt tt b d d d h dd, d

upptd th th u ud. Th pp tht pt pt d dt tu pd ub hth-td s ipt Bd th uhd, tt th dpt. Th tutu dd t du th pdut dpt h b pt h pb.

Use o Fundss F b tht th hth d pt t pptut dp s

ipt Bd. Th d t b d b t tht p d ptt hth, th th u ut tht xp dupt ptt.

Th tutu th hth dp t dut t bt

uppt th t dpt pdut th th t. Fud th dd t dp ututd ppt t t t .

F bt tud t th ptt th d, s F ud t t th hths ipt Bd pdut, tt ud 25 .

Contact detailsTb e 020 7182 7870 [email protected] ...u

Indicative temsThuh s ipt Bd,pt tt ud t p

hh ddb pd th p td. F tu t t

bd pd hth d ut. i ut dt p, th t pt. Th

tu ud dpd thp pjt. Th pdts ipt Bd Ptbuhh u irr 7.5 p

t t 13 p t u t t 10 p t dut dbhu x-d.

risksTh d t s ipt Bd

d: t h thptt t tu th tt hth ut

p, but th pt t.

s ipt Bd: a t ttt tt t p ut t

bt pp d ut.a s ipt Bd tt hh pub t tt t t p tpt ut (uh dut d t, th ub ppb u dttd t hpt) dd pput.


35/38


Social Stock Exchange Ltd

Taget Investos chtb Fudt, Tutd F o

Hh nt wth iddu

sri P Fud

l autht P Fud

F ittut

iddu b th pub

Use o Fundssse t pd th qut pt ptt th b ht bu d tp (ud td ht

pppt d cut itt cp).Ttd t ud db hu, tpt, th u, -th, ,

t, pub hth, dut, utbt d utu. sse u

xt pt qut/vc ud d thdpt pd pdut uh s isa.

Catalytic investment equested om the Big Society Finance FundBsFF ud th pt th ud t th sse t uh. sse ltd h d 1.2

ut t 2 tt t pd th pt t u th sse thuh x t ht ptbt.

Contact detailsm cp/Pdp Jht 07714 415262/07968030720 @p..u/[email protected].

Size o investments/loans to social ventuescpt th sse b th u t - d -p t hh ftth ut tt th tp t: 1

t 20 . But, pt t tutu tt, pt udptt b th pud dpd

t pptt.

Indicative temsit tu th

td th t d h:th ddd d pt(h p) ppt. ssedd tht tu

ud u dtpt qut t

tdd uh Uk sroi.

risksr dt t tht qut tt pdut: th

u th tt d up.

Th s st exh: Fsa uthd d utd tt xh th td

ut tp d th pup bu. it dd t b th ptd u bu h t pt d pt t hh t d b bu tht ft th u.


36/38

1. Tt pp utt ubttd dt tt.

2. nPc d nesTa (2011) Udtd th dd d upp : su h t th B st B.ld: nPs d nesTa.

3. nesTa/yu Fudt (2011) g s vtu: Th td d t; h th , ht th d, d ht thud b. ld: nesTa d yu Fudt.

4. i Tb 4, Pt db pt d ttut d phttd ddu t; Pub tt

d thuh pub tt h ud dut d pdt t xpt. Phthp ud t b ut pt p.

5. Fb Fudt, ip mori d nesTa (2011) it th gd st: wh d H wth iddu rpd.ld: Fb Fudt, ip mori d nesTa.

6. ibd; d Fb Fudt d ip mori (2011) H d ddu b t? ld: Fb Fudt d ipmori

7. s http://../

ENDNOTES

enDnoTes 36


37/38


38/38

NESTA

1 P h P l d ec4a 1De

twenty catalytic investments to grow the social investment market

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