Social investment as an enabler of change

Transcription

1 Social investment as an enabler of change ADASS Spring Seminar 10 April 2014 Geetha Rabindrakumar

2 What is social investment? It IS: the provision of finance to generate social and financial returns It is NOT: a grant there is an expectation of repayment of the finance, plus a return

3 Why is social investment beneficial? For INVESTEES For INVESTORS Fills financing gap for innovation and growth, increasing impact. Strengthens governance and accountability Brings in new groups of supporters, and their skills and experience Capital is recycled for onward investment Deeper engagement with social sector and community Helps shape a new responsible form of capitalism

4 Big Society Capital has been set-up to accelerate the social investment market in the UK HSBC Barclays Lloyds TSB RBS 600m capital Social sector organisations requiring capital to allow the organisation to grow to scale Social Finance Providers ( intermediaries ) Dormant Accounts Other investors seeking investments that create a positive social impact and financial return

5 We have two primary roles INVESTOR CHAMPION Grow the social investment intermediary market Increase awareness and confidence in social sector and in social investment Provide range of affordable and appropriate finance for frontline social organisations e.g. Work with sector to develop framework for evidencing social outcomes Create investible products for individual and institutional investors e.g. Work with UK and EU governments to encourage appropriate policy and tax support for social investment 4

6 We work with others to create a wider social investment ecosystem Commissio ning/reven ue support BLF Outcomes Fund ( 40m) CO Outcomes Fund ( 10m) Secured Loans Social Banks (~ 180m) Type of capital Unsecured Loans Equity Tech for Good ( 500K) Social Investment Funds (~ 20m) Fully or partly funded by government Fully or partly funded by Big Lottery Fund Big Venture Challenge (> 5m) Partly capitalised by Big Society Capital Grant Grant programmes from Charitable Trusts and Foundations (> 2bn) Other Restricted Grant OCS Social Incubator Fund( 10m) BIG Potential ( 10m) CO ICRF ( 10m) Start up Early Growth Established Stage of business growth

7 Social investment offers Local Authorities plenty of opportunities but also a lot to think about Opportunities To think about Health /social care interface, later life services Children and adult services edge of care, complex families, learning disabilities Community assets not just ex-public sector assets Other public service markets Education/Schools and Justice Other co-commissioners central gov, but police, CCGs etc. too? As an investor e.g. through pension funds Social investment is not magic money.for social organisations, it isn t a substitute for a revenue stream Interaction of commissioning/ procurement process with investment process Pay by results when to use, understand the implications for bidding organisations, is it investible? Where to go for advice LAs can talk to Social Finance, the SIB fund run by Bridges Ventures. Social organisations can get investment readiness help

8 Scaling social enterprise with motivated investors - Oomph! Wellness We wanted investors that shared our values: namely a commitment to strong commercial returns but never at the expense of the health and wellbeing of the older adults we exist to serve

9 Developing and Empowering Resources in Communities (DERiC) - social care and reduced isolation - Involves community organisations, adult social care directorates and community volunteers - Delivering enhanced care beyond basic needs, with reduced social isolation, and savings on care costs 2 - To be scaled up through 1m of BSC investment

10 Charity Bond Scope Scope is a UK disability charity working with disabled people and their families In 2011 Scope launched a 20m social investment programme In 2012 closed its first issue of 2 million bond with investment from foundations, high net worth individuals and institutions The finance raised was used to increase sustainable income streams (charity shops and fundraising) The unrestricted income is used to pay for key programmes: Trained parent befrienders who run peer support groups for parents with severely disabled children