Big Issue Invest have launched their latest social investment funding round. Credit: Hannah Busing / unsplash
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Applications are open for Big Issue Invest’s new Social Impact Debt Fund.
If you’re an organisation looking to grow your social impact, Big Issue Invest (BII) wants to hear from you.
The investment arm of the Big Issue Group, BII supports social businesses and charities working to unlock opportunities for people affected by poverty in the UK.
Today, BII has launched its fourth Social Impact Debt Fund IV (“Fund IV”).Fund IV is a private debt fund, which will lend to organisations across the UK. These loans will help organisations deliver “real impact” for individuals and communities, as promised by Danyal Sattar, BII chief executive officer.
“Big Issue Invest’s Fund IV will truly empower social enterprises to create and deliver solutions to effectively tackle poverty across the UK,” he said.
What type of organisations can apply to Big Issue Invest’s funding round?
BII has invested more than £80 million in deep social impact since 2003.
The new fund will focus on three core sectors – health and social care, affordable housing and social infrastructure.
Poverty and poor health care go hand in hand. There are around 1.6 million people in England aged 65 years and over with unmet care needs.
Big Issue Invest’s investment team for Social Impact Debt Fund IV: (L-R) Rebecca Moss, investment associate, Danyal Sattar, CEO and James Potter, investment director.
Fund IV intends to break this cycle by partnering with health enterprises that can provide innovative solutions to improve health outcomes.
Affordable housing is another critical area of focus. There are currently 274,000 homeless individuals in UK, including 126,000 children, while 1.2 million households languish on social housing waiting lists. Housing costs play a significant role in perpetuating poverty, with 46% of social renters experiencing the highest rate of poverty. BII has invited charities and businesses looking to tackle these pressing issues to apply.
Finally, Fund IV seeks to lend to organisations that improve social infrastructure. Communities suffering from high deprivation often lack public spaces, cultural engagement opportunities and active populations.
The fund welcomes applications from organisations running community centres, shared workspaces, arts performance venues, nursery provision and educational institutes.
Director of Big Issue Invest fund management John Gilligan described the fund as exemplifying everything The Big Issue stands for.
“Everything we do at Big Issue Invest is focused on supporting people facing poverty,” he said.
“Our new fund stands on the shoulders of the work we have done with our Big Issue vendor community over the last 32 years.”
The fund provides loans in the £1m – £4m range, typically backed by property assets and where BII will be the sole lender. The loans will be fixed rate and repayable over three to five years.
Borrowers will be established, and will be socially impactful organisations with a history of profitable revenue generation.
“Fund IV” is managed by Big Issue Invest Fund Management Ltd (BIIFM). BIIFM is the alternative investment fund manager (“AIFM”) of the Fund and is authorised and regulated by the Financial Conduct Authority (FRN: 610618) as a “small authorised UK AIFM” in accordance with article 3(2) of the AIFMD to manage unregulated AIFs. The fund is addressed to professional investors only.
Please note that: past performance cannot be relied on as a guide to future performance. The capital of Investors in the Fund is at risk. Any target is not a predictor, projection or guarantee of future performance.
This Christmas, 3.8 million people across the UK will be facing extreme poverty. Thousands of those struggling will turn to selling the Big Issue as a vital source of income - they need your support to earn and lift themselves out of poverty.
