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2023 Market Sizing

Our annual research on the social impact market revealed that the value of social investments in the UK was worth £10bn at the end of 2023, representing more than 7,000 transactions. This results in a 12-fold increase over the last 12 years.

Our market sizing estimate includes more than 100 different funds or social investment programmes that meet our criteria of social impact investment in the UK. These organisations include fund managers, intermediaries and social banks that invest directly into social purpose organisations, projects, and real assets.

  • £10bn

    value of social impact investment market at end of 2023, an 18% increase since 2021

    – as at 31 December 2023

  • 12x

    twelve-fold growth in twelve years, increasing from £830m in 2011

    – as at 31 December 2023

  • 7,000

    the total number of outstanding deals into social impact investment

    – as at 31 December 2023

  • Find out more about our market systems approach

    Our approach

How is the market size calculated?

The UK Social impact investment market is a subset of the broader UK impact investment market. For the purposes of our market sizing exercise, we define social impact investment as:

‘Investment into social purpose organisations such as charities, social enterprises and impact start-ups, or real assets such as social and affordable housing. The investment enables them to deliver products or services that create measurable, lasting social impact that improves people’s lives. Social impact investors are seeking positive social impact as well as a financial return and both investees and investor demonstrate social impact intent.’

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To calculate an estimate of the market size, we use the following methodology to guide the research.

  1. Build and refresh the market list of impact investing organisations that meet our definition and criteria
  2. Define the key metrics and definitions for market sizing approach

The two main metrics captured in this annual exercise include:

  • Size £m - Outstanding amount/value, as at the end of the calendar year. We also include an estimate of the number (i.e. # count) of transactions between Fund Manager & Frontline/Asset that make up the size £m.
  • Deal flow £m – The amount (and #) of new commitments made during the calendar year.
  1. Collect and aggregate key metric data for the market list of impact investing organisations
  2. Collate and estimate the investor composition of the market
  3. Benchmark our findings and compare to our prior years and other organisations’ market sizing reports

Find out more about our methodology.

Why do we carry out this exercise?

Each year since 2016, we have produced a comprehensive estimate of the size of the UK social investment market through our market data research.

As well as being an investor ourselves, Better Society Capital has a mandate to grow the wider social impact investment market. We measure the market to see how much progress is being made as well as to understand who is active in the market and where the investment is going.

Find out more about our progress in growing the market for social impact investment since 2016.

Who are the contributors?

We include >100 different funds or programmes that meet our criteria of social impact investment in the UK. These organisations include fund managers, intermediaires and social banks that invest directly into social purpose organisations, projects and real assets. You can see all those included below split by market system.

Social and affordable housing

Bridges/ Bristol & Bath Regional Capital CIC/ CBRE Global Investors/Cheyne Capital/ Civitas Social Housing/ Colombia Threadneedle (previously BMO Real Estate)/ DTZ Investors/ Ethex/ FAH/ Fundamentum/ Gresham/ Henley/ Joseph Rowntree Foundation/Legal and General/M&G/ Man Group/ Octopus Investments/ PGIM/Resonance/ Schroders/ Civitas/ Social and Sustainable Capital SASC/Thriving Investments/ TriplePoint

Social lending

Allia/ CAF Bank/ Charity Bank/NatWest/ Triodos Bank/Unity Trust Bank/ Triodos Bank/ Abundance/ Access - The Foundation for Social Investment/ Barrow Cadbury Trust/ BII/Bristol & Bath Regional Capital CIC/ CAF Venturesome/ Ceniarth/ City Bridge Trust (Bridge House Estates)/ Community Energy Together/ Community shares/ Esmee Fairbairn/ Ethex/ Fair4All Finance/ Guy's St Thomas Charity/ Joseph Rowntree Foundation/ Key Fund/ Nesta/ Northstar Ventures/ Postcode Innovation Trust/ Resonance/ Responsible Finance/ Social and Sustainable Capital SASC/ Social Finance/ Social Investment Business Group (SIB)/ Social Investment Scotland/ Sporting Assets/Treebeard Trust/ Triodos Bank/Wales Council for Voluntary Action/

Impact venture

Ada Ventures/ Albion VC/ Ananda Ventures/ Anthemis Financial Wellness/ Ascension Ventures/ Balderton/ Bethnal Green Ventures/ Bridges/ Brighteye Ventures/ Connect Ventures/ Eka Ventures/ Emerge Education/ Form Ventures/ Frog Capital Limited/ Impact Ventures UK/ Joseph Rowntree Foundation/ Kindred/ MMC Ventures/ Mustard Seed/ Nesta Investments/ Octopus Ventures/ Outsized Ventures/ Social Investment Scotland/ The Conduit Connect/ Zinc/

Social outcomes contracts

BII/ Bridges/ Social Finance/

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