Social Finance: New Investment Opportunities for Public Service Delivery

Melanie MillsChief Executive

@Melanie_SEWM

The Social Investment Marketplace

CIC

Public

Bodies

Direct

SIB

IndirectContracts &

Commissioning

Signpost

Big Society Capital: Types of Social Investment

Big Society Capital: How the Social Investment Market Works

Big Society Capital: A Social Investment Wholesaler

Social Investment

Tax Relief

Commissioning Better

Outcomes & Social

Outcomes Fund

ICRF 2 & Impact Readiness

Community

Assets Fund

Social ISAs

(bond funds)

Social Impact Bonds

Big Potential Local Impact Funds LEPs

Social Finance in the

West Midlands

The Missing Middle

Developing and Empowering Resources in Communities has cornerstone funding from BSC which helps deliver support to vulnerable people including a Sandwell programme

Bridges SIB Fund investment in Birmingham children close to care Social Impact Bond.Worcestershire County Council has announced they will be tendering for a social isolation SIB for the elderly.

Charity Bank has facilitated investments including Unit3Sixty - a social enterprise skatepark in Stourbridge

Midlands Together CIC raised £3 million of social investment through Triodos who worked with the Shaftsbury partnership to buy refurbish and sell empty properties and provide training and support for exoffenders

Community Investment Fund and the Community Shares Underwriting Facility both of which are supporting community assets: includes recent successful community shares offerings for solar energy schemes at a hospital in Leamington Spa and at a community centre in Malvern.

Some WM Social Investment Examples:

The Social Impact Fund for the North

The Key FundSam Tarff- Chief Executive Officer

Key Fund Investments Ltd

[email protected]

www.thekeyfund.org.uk

WE LISTEN, WE HELP, WE FUND... YOU GROW

The Social Impact Fund for the North

• Supporting Social Enterprises since 1999• We are a Social Enterprise providing specialist advice

and access to finance to create positive social impact• The largest regionally based social investor in the

country- born in and focussed on the North• Focussed on smaller deals and helping organisations

to grow and develop• Committed to providing ‘the right money at the right

time’• All returns from are reinvested back into the sector

Who we are

The Social Impact Fund for the North

• Practical support to hone your proposal• Flexible (unsecured and secured) and tailored

investments from £3,500 to £300,000 • Simple and transparent fixed interest rates and terms• A real trust relationship with our investees• Fast decisions- average turnaround time for decisions

following full application- 3 weeks• Business Support through our 2 social Incubators• Referrals to support organisations and other funders• * Developing impact measurement tool

What we offer

The Social Impact Fund for the North

£34m invested in the sector

2,200+ - Organisations supported

250+ - New Start Ups,

2,200- Jobs Created/ Safeguarded,

6,500 - Training Opportunities

76% of investments in top 20% most deprived areas

Impact to date

The Social Impact Fund for the North

Flavour of the investments we make• All turned down by banks and other traditional

investors• 65% unsecured in 2013/14• Average deal of c£20k in 2013/14• Examples:

• Self Build Housing Developer• Specialist Sports Coaching• Community owned Wind Farms• Social Care Home Franchises• Dance Academies• Therapeutic Comedy training academy

The Social Impact Fund for the North

Commitment to the West Midlands• New £1m Social Impact Fund for the West Midlands

from our own resources• Working with local partners- SEWM, Social Banks,

CDFI’s & support agencies• Bringing the Social Incubator North programme to the

West Midlands • Complimenting the existing activity and advocate for

the sector alongside others• Looking to leverage our £1m with other

opportunities…

The Social Impact Fund for the North

Opportunities• Difficult times, but…• Increasing roles for others (including but wider than

SIB’s/PbR), particularly:• Local Authorities (Notts and other talks etc)• NHS (move from cure to preventative etc)• Government (service re-design etc)• Banks (pressure to re-focus)

• Opportunities to trade with General Public/Business to Business- USP of social impact.

The Social Impact Fund for the North

How we can help?

• Developing funds collaboratively (thematically – Housing Associations to develop new ventures with tenants

• Geographically –LAs : more on this when Cllr Nick McDonald speaks.

• Exploring where social finance can go in the future with the interpretation of social impact (Universities)

• Helping to develop new products that align to new opportunities including EU monies (LEPs, LAs,)

• Taking advantage of new social investment tax reliefs (Community Foundations)

Thank You For Listening, Any Questions?

Contact [email protected] 140 1400

The Business Network for

Social Enterprise & Social Value Supporters

www.socialenterprisewm.org.uk

@Melanie_SEWM

[email protected]