Three social investment funds previously managed by Greater Manchester Centre for Voluntary Organisations (GMCVO), which entered administration in late 2024, have been taken on by a specialist community investor.
The news, announced on 12 March, will see the Sheffield-based organisation handling the GMCVO’s Growth Fund, Enterprising Communities Fund and Proper Good Investment Fund.
Key Fund, which was founded in 1999 to help neighbourhoods hit by the decline of South Yorkshire’s coal and steel industries, said it had taken over the management of the funds after “sustained work” between GMCVO’s funders and administrators.
It has been operating in Greater Manchester for 15 years, and said the move would “ensure that support continues to be delivered locally by an impact-focused organisation”.
‘Significant losses’ at GMCVO
GMCVO appointed administrators Emma Mifsud and Charles Turner, from legal firm Opus Restructuring, in late November after concluding its business model was no longer viable.
It was one of the UK’s largest local infrastructure organisations, existing for around 50 years, with five wholly owned subsidiary companies – three of which were responsible for the social investment funds.
Its accounts for the financial year ending March 2023 list a total income of £3.32m against an expenditure of £3.65m. In the previous year, GMCVO’s income was £3.79m while its expenditure was £3.55m.
The organisation commented at the time that it was predicting “significant losses” moving forward, and that it would be smaller in the future. Its subsequent collapse reportedly led to about 15 GMCVO staff losing their jobs.
GMCVO’s main financial backers, Access – The Foundation for Social Investment, Better Society Capital, Greater Manchester Combined Authority and the National Lottery Community Fund, said they were “grateful to all parties” that a solution had been found for the investment funds.
‘We look forward to engaging with partners and funders’
Key Fund said the outcome will ensure continued support for local social enterprises, and that existing loans “are managed by an investor with an understanding of the sector and a commitment to impact”.
The organisation is committed to working with funders and local partners to continue helping enterprises in the region generate impact.
Matt Smith, chief executive of Key Fund, said he had been “saddened to hear of the challenges at GMCVO and the impact on the social enterprises in the area”.
“We have worked with funders to find a solution and look forward to engaging with partners and funders over the coming months as we explore new opportunities to further support Greater Manchester.
“We note with regret this has been a difficult time for former staff and stakeholders.”
He added: “But we hope the outlook is now more positive for the sector in the region.”
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