Better Society Capital (BSC) has made £1bn-worth of investments into social enterprises and charities across the UK since it was founded in 2012, it has announced.
The social impact investor today announced that its £1bn had been paired with £2.9bn in co-investment from new investors, making a combined total of almost £4bn available to over 3,750 impact-led organisations tackling issues such as homelessness and fuel poverty.
Since 2012, BSC estimates that the UK’s social investment market overall has grown to more than £10bn, a 12-fold increase.
After launching in 2012 as Big Society Capital, the investor received £400m from dormant bank accounts and £200m from banking groups including Barclays and HSBC.
BSC said the £400m dormant assets have now increased 10-fold into over 140 fund commitments by itself and other investors, “reflecting the power of recycling capital”.
“This capital is now reaching over 3,750 impact-led organisations tackling crucial social issues including housing, employment, education, health, and financial inclusion,” BSC said in a statement.
“The impact has been substantial: over seven million people supported through impact venture investments in financial inclusion and health, more than 7,000 homes delivered (housing approximately 15,000 people), with over 60% of BSC's social lending investments directed to the UK's most deprived areas.”
BSC said the achievements had been reached alongside “vital partners, including the social enterprises and charities delivering front-line impact across the country and the investors seeking to invest for impact”.
“With many social issues deeply entrenched throughout the UK, the amount of capital needed to deliver social change is still substantial.
“Building strategic partnerships with social sector organisations, government bodies, and private and institutional investors while leveraging the vital support of co-investors and delivery partners remains at the core of BSC's approach for the future.”
‘Exciting time for the sector’
Anna Shiel, chief investment officer at BSC, said: “This is an exciting time for the sector – we’re really proud to have helped demonstrate the value of social impact investing as an innovative way to use public and private funds for purpose.
“What began as a relatively small pot of money has grown significantly with the help of incredible co-investors and delivery partners, giving us tremendous hope for the sector's future.
“With the new government in place, we see exciting opportunities for renewed engagement in the social impact investment market to attract new investors seeking to drive positive social change with their capital.”
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