1. Social investment
ACEVO Health and Social Care
Forum
22 April 2014
Geetha Rabindrakumar
grabindrakumar@bigsocietycapital.com

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?
• 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,
increasing impact
• Investment practice
aligned with mission
• Supporting sustainability
in voluntary sector
For INVESTEES For INVESTORS

4. £109m £72m
BSC role as a wholesaler

5. Social investment to create positive impact for vulnerable groups
General
Public / All
Long-term
unemployed
Homeless
Addiction
issues
Long-term
health
issues, life
threatening
or terminal
illness
Living in
poverty/are
financially
excluded
Learning
disabilities
or mental
health
needs
Physical
disabilities
or sensory
impairment
Vulnerable
young
people and
NEETs
Vulnerable
parents
Vulnerable
children
Voluntary
carers
Elderly
(including
those with
dementia)
Ex-offenders
Experienced
crime or
abuse
Employment, training
and education
Housing and local
facilities
Income and financial
inclusion
Physical health
Mental health and
well-being
Family, friends and
relationships
Citizenship and
community
Arts, heritage, sport
and faith
Conservation of the
natural environment
Outcome AreasBeneficiary groups
Eg Scope bond £2m
2012
- Investment
used to grow
fundraising and
expand charity
shops
- Investors
included
Foundations, In
stitutions, HN
Ws
http://www.bigsocietycapital.com/outcomes-matrix

6. VCS sector developed in health and social care
8% of social enterprises operate in health and social care.
Long track record providing £4.5-7bn of services
Have potential to improve service user outcomes
– Focus on prevention
– Collaboration with service users
– Close working with communities
– Expert knowledge of local needs and preferences
– Engagement with volunteers building social capital

7. Increasing demand for social investment
•Shift to PBR contracts
•Increase in Social Impact Bonds that focus on
preventative services with potential for long term cash
savings
Delivering outcome-based
contracts
•Working capital for organisations shifting to new
commissioning environmentBridging cash flow
•Supporting innovation in service delivery
•Accessing new revenue streams from commissioners
Developing new services
and products
•Developing new facilities to accommodate care users
Purchasing assets

8. 8
Charity bonds for property – eg Dementia care homes, Independent
Living
• Golden Lane Housing issued £10m bond in
2013
• To provide adapted houses for people with
learning disabilities supported by Mencap

9. 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”

10. 10
Scaling up local community based services
• Supports some 4,900 of the most vulnerable adults across the
country to live fulfilling lives as part of a family and community.
• Opportunity to drive a national expansion of high-quality
community care.
• Social Finance is seeking to raise social investment to support
the growth of Shared Lives across the country through an
“Incubator”

11. Community based personalised services – DERiC
11
Developing and Empowering
Resources in Communities
DERiC
Provides loans
CPCE franchise
(Independent Brokers)
- Produce care support
plan
- Provide volunteer
services alongside
commissioning care
support
- Share savings with LA
Service providers
- Foster local
brokers
- Improve life
experiences for
older people
through more
community
support & more
effective use of
personal budgets

12. SIB Model: To reduce loneliness and isolation amongst older
people (in development by Social Finance)
Investment in services to reduce loneliness – benefits of reduced
service use and improved health outcomes
Reduced loneliness
SIB SPV
Investment into SIB
programme
Payments
represent a % of
cost savingsInvestors
Commissioner
(eg LA)
Delivery programme (could include
peer support, group activity, CBT
for most isolated)
Lead delivery charity
Payment metric:
Reduction in
loneliness
- Pressing social need
- Engaged commissioner
- Complex social outcome
to evidence

13. Support to prepare for investment
– For social ventures seeking to
raise over £0.5m investment
– Grant (£50k-£150k) to cover cost
of capacity building support
(application joint with advisory
firm – over 35 approved
providers)
http://www.beinvestmentready.org.u
k/social-ventures/
Big Potential (new -
first half 2014)
- £10m fund over 3 years
- For VCSE organisations seeking to
raise up to £500k investment (or
contracts)
- Diagnostic tool assessment to check
whether social investment is a realistic
possibility
- Advisory support (apply jointly with an
approved provider):
- Preliminary grants to build
organisational capability (c£25k)
- Investment plan grants (c£45k)
- http://www.sibgroup.org.uk/bigpote
ntial/

14. Other online information
1) Submit online queries to BSC investment team
http://www.bigsocietycapital.com/ask-us-question
2) Sources of funding currently open:
http://www.bigsocietycapital.com/sources-investment
2) Directory of social finance providers and advisers (can filter for
specific requirements):
http://www.bigsocietycapital.com/finding-the-right-investment
3) NCVO guide and tool
http://www.fundingcentral.org.uk/Page.aspx?SP=6059
4) Big Potential Website and Big Lottery Fund Guide to Social Investment
(to launch by summer 2014)

15. Funds in 2014
Care and
Wellbeing
Healthcare Charity Bonds
SIB Fund Property Funds
Other sector
focused
funds…?
Finance for
medium
enterprises
Small
unsecured
loans
Regional funds
(Scotland, NE)

16. Future Developments
Social Investment
Tax Relief
BSC & BIG co-
financed initiatives
ICRF 2
(Cabinet Office)
Community
Assets Fund
Social ISAs
(bond funds)
Manifesto
development

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

18. www.bigsocietycapital.com
Big Society Capital Limited is registered in England and Wales at Companies House number 07599565.
Our registered office is 5th Floor, Chronicle House, 72-78 Fleet Street, London EC4Y 1HY.
Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.