1. A bridge to social investment Essex
19 May 2017
Social Finance is authorised and regulated by the Financial Conduct Authority FCA No:

2. Who we are
Social Finance is a not for profit organisation that partners with the government, the social sector and the financial community to find better ways of tackling social problems in the UK and beyond.
MOBILISED OVER £110M OF SOCIAL INVESTMENT

3. WHO ARE THE SOCIAL INVESTORS?
Finance for socially motivated organisations is similar to the private sector, with some important differences. The types here are listed according to ascending cost of capital.
Description
Examples
Charitable Trusts and Foundations
Typically ~90% of finance as grants with the rest repayable finance
Primarily for charities
Driven by high social return
Social Bank
Commercial loans from £50k to £10M (typically £2-3M)
For Social Enterprises / Charities
Social Loan Funds
Commercial loans to social sector organisations in 2 categories:
Type A: <£250k
Type B: up to £3m
Social Investment Tax Relief (SITR)
Tax advantaged scheme to help raise finance for social enterprises
Regulated social sector organisations
Social Equity and Mixed Funds
Similar to Private Equity
Does not require a running return
Source: HMRC Website

4. Why and when an organisation should consider investment?
Charities and social enterprises may consider taking on social investment for a variety of reasons:
Why?
When?
Develop better performance and financial literacy
Trading to deliver a surplus
Taking on an asset that delivers revenues
Support to attract new money
Help a grantee become more sustainable / diversify revenue
Taking on contracts from the public sector
Enable funders to recycle their money
Diversify revenue into complementary service areas

5. Case Study: Teens and Toddlers (Charity)
SOCIAL ISSUE & INTERVENTION
Social Purpose: Better the lives of disadvantaged children and adolescents vulnerable to becoming Not in Education, Employment or Training (NEET).
Intervention:
At-risk young person mentors a disadvantaged child in nursery - develops emotional intelligence - and improves education and employment outcomes
Target Group: ~3,000 vulnerable teenagers and disadvantaged children in nursery in Greater Manchester and Thames Valley
Success thus far: First project delivered 17% over-performance on outcomes compared to original base case
~97% of T&T grads in employment or training
OUR WORK
Project: Advised T&T on programme design, CBA, bid development; raised investment; performance management systems for service delivery
Outcome:
Successfully won two successive Social Impact Bond programmes run by DWP and raised £1.7m investment to fund two projects delivered over 3.5 years each

6. Oomph! Track record on outcomes
CASE STUDY:
Our Organisation Makes People Happy
Award winning for profit social enterprise set up in 2011, dedicated to enhancing the mental, physical and emotional wellbeing of older adults. Offer training, support and services to allow care home staff to deliver unique, personalised exercise and activity programmes.
January 2017, Care & Wellbeing Fund (managed by Social Finance) invested £0.8m
Created new minibus service – Oomph! Out & About - care homes to run out of home activities.
Oomph! Track record on outcomes

7. case study: ABILITY TEC - FIRST INVESTMENT
Commercially focused social enterprise manufacturing electronics based in Bolton. Sources components globally designs and assembles electronic circuit boards to client requirements.
Investment Details
Amount
£260,000 (Fed 2017)
Term
5 years
Interest Rate 7%
Type
Loan stock (unsecured)
Use of Funds
Refinancing creditors
Working capital for growth
Investee Details
Name
Ability Tec CIC
Legal Form
Community Interest Company (2012)
Turnover (2015)
£573,037
Employees 12
Managing Director
Oliver Randell
Social Impact
Ability Tec mission to create lasting social benefits for employees, customers and the community.
Profits reinvested in business, workforce to double over the investment term.
Workforce are disabled

8. Case Study: Reconnections Loneliness service
Reconnections Ltd
Age UK H&W (Lead Delivery Body)
Commissioners: Worcestershire CC, CCGs, Cabinet Office & BLF
3,000 people
Investors: Nesta, Care & Wellbeing Fund & Age UK National
Delivery Partners
Payments dependent on reductions in loneliness
Impact on loneliness measured using standard scale
Local delivery partners manage support through volunteers
£850k investment
Worcestershire County Council have awarded a outcomes based contract for reductions in loneliness.
The Care and Wellbeing Fund and Nesta Impact investments has provided upfront investment to help fund the service.
This has allowed us to work with Age UK Herefordshire and Worcestershire to bring together a number of voluntary organisations across Worcestershire to create a new county wide project to tackle loneliness.
Its is an opportunity to work at scale across a whole county to reduce loneliness and the impact on costs of health and social care services. PSSRU are also evaluating our impact and the economic and social affects of the service.

9. Innovative investment partnership

10. Quick recap…..
Its not free! Its not for everyone!
But can help to deliver impact at greater scale. Isn't that the mission?
Investors bring focus on outcomes, which can drive innovation and take delivery risks public sector often can’t
Insights from data, adapting services to improve delivery & impact is key.