Bridges Ventures and Big Society Capital have today announced the launch of the Bridges social impact bond fund.
The £14m fund is being billed as the first of its kind, and will invest in bonds for charity and social enterprise programmes designed to produce social outcomes in areas such as education, employment, housing and care for vulnerable young people.
It will be managed by Bridges with Big Society Capital acting as cornerstone investor alongside the Bridges Social Entrepreneurs Fund, investment firm Omidyar Network and social impact investor Panahpur.
As well as working with a diverse network of commissioners, delivery organisations, intermediaries and advisers, Bridges says it will support charities and social enterprises in the bidding process.
Fund 'will be catalytic'
Antony Ross, partner and head of social sector funds at Bridges Ventures, said that the fund will play a “catalytic” role in the way social sector organisations are financed in the future.
“The fund will provide charities and social enterprises with a much needed sustainable source of capital and support, allowing them to focus on delivering crucial social outcomes-based programmes that will benefit society as a whole,” he said.
Nick O’Donohoe, CEO of Big Society Capital, added: “This fund provides a new opportunity to invest in a professionally managed, diversified portfolio of payment-by-results contracts delivered by social sector organisations.
“Going forward, Bridges will be able to provide a unified voice for investors in the development of payment-by-results commissioning to help level the playing field for social sector organisations.”
In March Big Society Capital announced that over the coming months it would be focusing on unsecured lending for the charity sector and helping communities take over assets.
Bridges Ventures has raised seven funds to date which total almost £300m: Sustainable Growth Funds I, II and III; the Bridges Sustainable Property Fund; CarePlaces Fund; Bridges Social Entrepreneurs Fund and Bridges Social Impact Bond Fund.
