The social investment market in the UK grew to £9.4bn last year, up from £7.9bn in 2021, according to figures published this week by Big Society Capital (BSC).
Of this total, £3.5bn had been lent to charities and social enterprises through bank, non-bank and charity bonds, a 6% increase on the year before.
Most of the money, £5.1bn, was invested into social and affordable homes, a 35% increase from 2021.
Meanwhile, the impact venture market reduced by 10% in the year to £673m while £28m was invested in social outcomes.
BSC’s estimates for the current social investment market size including the £9.4bn figure are based on the outstanding value of investments on balance sheets.
This compares to a £5.1bn estimated market size in 2019, when BSC announced plans to at least double the market to up to £15bn by 2025.
In 2022 specifically, £1.8bn of new investments were made across 1,310 deals.
Further growth plans
BSC called on the government to support further growth of the market including by allocating “a significant portion” of its new tranche of dormant assets to social investment.
Chief executive Stephen Muers said: “The continued growth in social investment in this challenging environment is welcome and demonstrates an increasing investor appetite for creating positive change to people’s lives.
“But evidence shows that significantly larger amounts of private capital are badly needed to help tackle social problems.
“The time is now for the government to build on this British success story and help unlock social impact investment at much greater scale – without spending a penny more.”
Culture secretary Lucy Frazer said: “Through social outcomes partnerships and the Dormant Assets Scheme the government has played a pivotal role in growing the market.
“Reaching this landmark of £9bn shows that social impact investment works for both investors and those that need it most.”
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