Over 3,750 charities and social enterprises across the UK have been supported through £1 billion of investment from Better Society Capital (BSC) and £2.9 billion in co-investment from new investors. This has made nearly £4 billion available to organisations across the UK tackling complex social issues including housing, employment, education, health, and financial inclusion.
Reflecting on BSC’s 13-year journey, three key insights stand out—each pointing to the evolving role of the social investment sector in the UK:
- Multiplying 10x: the power of recycling capital
In 2012, after receiving £400 million from dormant bank accounts and £200 million from Barclays, HSBC, Lloyds Banking Group and NatWest Group First, BSC committed a first investment of £2.7 million into The Foundry, an affordable office space for social enterprises and charities in Vauxhall.
The £400m initial dormant assets have now been multiplied 10x into over 140 fund commitments by BSC and other investors, reflecting the power of recycling capital.
2. Tackling critical social issues
This capital is now reaching over 3,750 impact-led organisations tackling crucial social issues including housing, employment, education, health, and financial inclusion.
The impact has been substantial: over seven million people supported through impact venture investments in financial inclusion and health, more than 7,000 homes delivered (housing approximately 15,000 people), with over 60% of BSC's social lending investments directed to the UK's most deprived areas.
- The vital role of partners: change doesn’t happen alone
This change is only possible through the work of vital partners, including the social enterprises and charities delivering front-line impact across the country and the investors seeking to invest for impact. In particular, impact driven fund managers play an essential role in seeking out and creating investment solutions that meet the needs of enterprises and investors.
By attracting diverse sources of private capital to invest alongside dormant assets, BSC has shown how £600m in initial capital can catalyse a much larger movement capable of tackling some of the UK's most pressing social challenges. Alongside a diverse range of co-investors, the social impact investment market is now a multi-faceted ecosystem for investment, having grown twelve-fold to over £10 billion in size today.
The Road Ahead
With many social issues deeply entrenched throughout the UK, the amount of capital needed to deliver social change is still substantial. The next stage of delivering BSC’s mission will have a particular focus on partnering with government across several policy areas including combatting homelessness, reforming children’s social care, and the just transition.
With the creation of the new Social Impact Investment Advisory Group by the HM Treasury and Department for Culture, Media and Sport (DCMS), BSC remains motivated to create a Social Impact Investment Vehicle to mobilise more private investment into social impact.
Building strategic partnerships with social sector organisations, government bodies, and private and institutional investors while leveraging the vital support of co-investors and delivery partners remain at the core of BSC's approach for the future.
Anna Shiel, Chief Investment Officer at Better Society Capital commented: "This is an exciting time for the sector – we are really proud to have helped demonstrate the value of social impact investing as an innovative way to using public and private funds for purpose. What began as a relatively small pot of money has grown significantly with the help of incredible co-investors and delivery partners, giving us tremendous hope for the sector's future. With the new government in place, we see exciting opportunities for renewed engagement in the social impact investment market to attract new investors seeking to drive positive social change with their capital.”
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About Better Society Capital
Better Society Capital is the UK’s leading social impact investor. Our mission is to grow the amount of money invested in tackling social issues and inequalities in the UK. We do this by investing our own capital and helping others invest for impact too.
Since 2012, we have helped build a market that has directed more than £10 billion into social purpose organisations tackling issues from homelessness and mental health to childhood obesity and fuel poverty, a twelve-fold increase in 12 years.
Press Contact
Lauren Rae, PR and Communications Manager
E: lrae@bettersocietycapital.com
T: 07464 799565