Over the past three years, Social Finance has worked with social sector organisations in the UK, using our structuring skills to make optimal use of their assets and cash flows to raise growth capital and develop robust investor propositions. We have also worked as a partner with a wide range of investors and intermediaries - from socially motivated trusts and foundations to institutional money managers prepared to positively discriminate for social return - to establish ways in which they can achieve their objectives through social investment.
Social Finance is committed to finding new ways of driving capital into the UK social sector. In September 2010, Social Finance raised £640,000 for a Community Development Finance Institution, East Lancashire Moneyline (ELM). Social Finance is also considering the use of venture capital trusts and fund of funds in the social investment marketplace.
In September 2010, Social Finance launched the first ever Social Impact Bond with an oversubscribed fund of £5 million. The Coalition Government has expressed an interest in extending the use of Social Impact Bonds throughout government. Most recently the Ministry of Justice announced six more payment by results pilots for the Criminal Justice sector. Social Finance is working closely with the MOJ and other central and local government departments to consider the application of Social Impact Bonds across a range of social issues.
Social Finance also undertakes advisory work for government and other stakeholders on issues such as financial exclusion, where a financial solution is required for a social problem. Most recently we have been advising the UK Treasury on the design and application of basic budgeting bank accounts for low income customers.