Kindly make precis of "A Social Investment".​

1

Foreword

Since taking on the role of Chief Executive

of Big Society Capital earlier this year I've

spent a lot of time talking to people about

the market for social investment in the UK.

Across the board there is a real sense of

excitement about the innovation taking

place in the sector and the possibilities for

the next few years. From start-up capital for

social entrepreneurs to social impact bonds

for established ventures, new opportunities

are capturing the imagination of investors

and practitioners alike.

What's been lacking, until now, is a comprehensive survey of the social investment

market that goes beyond case study and anecdote to provide real data on the different

players, their finances and their business models. That is why I believe this report is so

important. For the first time we can put numbers on many of the hunches, observations

and beliefs that have been debated in the sector for some time.

For example, we now have a bottom-up assessment of the size of the social investment

market in England. A total of £165m in social investments were made last year and the

vast majority of those by just a handful of large players. Secured lending dominates with

riskier equity and quasi-equity investments making up a minority of the activity.

This is incredibly useful information, not just for Big Society Capital as we shape our

strategy and operating model, but for everyone in the market. The opportunities for

growth are clear, such as the financing requirements resulting from payment by results in

the public sector. So too are the barriers, such as developing a better understanding of

how risk should be measured and priced for social investments.

I'll be making sure that Big Society Capital plays its part, working with the rest of the

sector, to address these challenges. What this report provides is a line in the sand from

which we can measure our progress over the months and years ahead.