FIRST STEPS IN ACCESSING SOCIAL INVESTMENT
Social Enterprise North West
Salford – 27 February 2014
Dan Hird
Head of Corporate Finance
Triodos Bank
First Steps in accessing social investment
Investment readiness
First steps - evaluation
- is a blended social and financial return achievable?
- identify business case and finance requirement
Investment readiness – what does this entail?
- business planning and financial modelling
- advice on governance – contracts, management etc
- plan deal structure and type of finance?
- data-room
- produce financial promotional material
- marketing plan
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First steps in accessing social investment
Investment readiness – financing support
Investment & Contract Readiness Fund (ICRF)
- £10m fund administered by SIB on behalf of Cabinet Office
- provides access to a list of accredited intermediaries
- aimed at SEs looking to raise at least £0.5m of social investment
- grants of £50k - £150k available
Other forms of investment readiness support
- Big Lottery Fund – Social Incubator Fund & others
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First steps in accessing social investment
Accessing social investors
Social investors – a definition?
- motivated by a blended social and financial return
Social investors – who are they?
- institutions – charitable foundations, family offices and trusts, social investment funds
- intermediaries – private banks, IFAs, wealth managers
- retail – HNW investors and members of the public
- potential new investors – housing associations, LA pension schemes, corporates,
University endowment funds
Social investment - a developing market and a new asset class .............
- BSC, SIBs, SITR, public sector reform, charity bonds
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First steps in accessing social investment
Social Investment Tax Relief (SITR)
Principal features
- introduction – April 2014 (subject to Royal Assent in July 2014)
- offers 30% up front income tax relief against an eligible social investment
- eligibility – unsecured investment (can be in the form of debt (bonds) or equity)
- eligibility – charities, CICs and CBCs – with less than 250 employees
- intended to work in a similar way to existing tax reliefs such as EIS, SEIS and VCTs
State Aid rules
- initial relief limited to around £200,000 per issuer
- Government is applying to EU for increase in relief (aim £5m by 2016?)
What effect could SITR have on the social investment market?
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Triodos
Contact details
Dan Hird
Head of Corporate Finance
0117 980 9588
dan.hird@triodos.co.uk
www.triodos.co.uk
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