Big Society Capital has reported its first annual profit since the organisation was launched in 2012, according to its latest annual report.
The organisation made a £782,000 net profit in the year to December 2017, compared to a £5.27m net loss in 2016, its 2017 annual review, published today, says.
BSC says this profit is due to the growth and performance of its social investment portfolio, but says it expects to make both net profits and losses in future years.
It says: “Our long-term aim is to demonstrate financial viability and cover operational and market championing costs as well as generating a financial return.”
The report also says that BSC is exploring whether it could raise additional funds from mainstream investment.
It says: “There has been a rapid rise in impact funds launched by mainstream asset managers in the last two years.
"These offer the breadth of scale which could very helpfully connect with the depth of impact investment which is the cornerstone of our own work.”
£1bn-worth of investments
The report shows that BSC has now backed over £1bn-worth of investments into charities and social enterprises since its inception in 2012.
Of the £1.1bn-worth of investments backed by BSC at the end of 2017, £434m is BSC’s money and £712m is from its co-investors.
Of those organisations that received investment, 29 per cent were housing and local facilities; 16 per cent focused on employment, training and education; and 15 per cent were in the area of citizenship and community.
Money drawn down from BSC increased greatly during 2017 to £224m, up from £142m in 2016 and is being used by more than 800 charities and social enterprises in the UK.
Cliff Prior, chief executive, said: “It’s been a big year for Big Society Capital. There has been growth across the whole social investment market while we saw funds committed by us and our co-investors pass the £1bn mark.
“More than 800 charities and social enterprises are now using repayable finance from Big Society Capital and our co-investors, tackling some of the toughest social challenges faced in the UK today.
“What’s more important is that organisations are using social investment alongside other sources of finance, while collaboration and partnership are coming to the fore in creating solutions for social issues.”
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