British social investment market grows by a third to £3.5bn

British social investment market grows by a third to £3.5bn

According to independent institution, Big Society Capital (BSC), the UK´s social investment market has grown by 30 per cent in the last year and is now worth £3.5bn.

In 2018, there were over 1,000 new social impact investment transactions that were recorded, a major leap from the 477 seen in 2017.

The latest data shows that there has been more than 4,000 similar transactions over the last six years.

BSC reported that since 2015 the figure had grown by approximately 30 per cent every year proving that there is more capital available for organisations that focus on crucial social issues.

The chief investment officer at BSC, Jeremy Rogers, explained how the increase in social investment was correlated to increased awareness and the ability and desire to accept investment by social enterprises and charities.

He added that there was more interest in investing with projects with purpose, meaning new and innovative products are being developed by fund managers.

“This increase in products and capital has created more options for both investees and investors, helping capital to flow where it is most needed,” said Rogers.

“We know that many of the issues social enterprises and charities are aiming to tackle, such as homelessness and financial exclusion, require significantly greater amounts of capital than is currently available to them.

“It is therefore fantastic to see this continued growth in the social investment market, helping to fund vital projects across the UK.”

The chief executive of the Impact Investing Institute, Sarah Gordon, said: “We need to do more to make it easier for social enterprises and charities to access more of the capital that is so badly needed to address the social challenges we as a country face.

“Lowering some of the barriers that stop more capital flowing into impact investment will be one of the ways we hope to help further growth in the market.”

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