Transcript Be Financially Effective - Co

Social Finance
Heidi Harris
What is social finance
• Investment – balance of risk and return
• Considers financial and social returns
Types of social finance
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Grants
Bridging loans
Philanthropic capital
Quasi-equity/Revenue participation
Loans
Social Impact Bonds
Social investment: a spectrum
of returns
- 100%
Grant makers
Limited Supply
0%
Capital
protected
+ 8%
Market rate
return
Increasing Supply
Social Impact Bonds
• Payment by Results (PbR)/Outcome based
contracts (preventative)
• Identifiable social problem
• Commissioner interested in social problem
• Intervention provides measurable cost
savings
• Social investor(s)/financial intermediaries
invest for return based on achievement of
social outcomes
Key Issues
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Business case
Sustainability
Legal structure -debt/share investments
Financial Projections
Cash flow management - PbR
Measurement of outcomes - SROI
Effective management
Who provides social finance?
• Charity Bank – for loans up to £250k includes new start ups
• Venturesome – loans and quasi-equity –
one year trading history
• Big Issue Invest – loans, quasi-equity and
shares usually after 3 years
• Clearlyso – share investment
• Triodos – loans after 3 years
Who provides social finance?
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CIC Bond
Venture Capitalists/Business Angels
Esmee Fairbairn
Bridges Ventures – bridging loans
Investing for Good
Impetus Trust – development loans
CDFI’s
Useful links
• www.knowhownonprofit.org/funding/socialinvestment-1 - Social investment
explained
• www.socialfinance.org.uk – Guides to
developing social impact bonds/social
finance
Contact Details
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Heidi Harris
[email protected]
07530 428738 or 0121 629 7823
www.harrisaccountancy.co.uk