Growing the local social economy
with place based investment
Chris Dadson
Business Development Manager
The SIB Group are
About SIB Group
Local Impact Funds: Overview
• ‘Local Impact Funds’ direct investment into local areas to increase jobs and
growth, grow a social economy and support social entrepreneurship.
• Local Impact Funds can deliver ‘place based social investment’. They:
Combine wrap around business support with growth investment.
Connect EU, national and local supply with local demand for finance.
Support local economic and public services strategies.
• The Liverpool pilot fund was launched in January, we are looking to launch a
second pilot fund in Northamptonshire before the summer.
• 10-20 Local Impact Funds could be set up over 2014-17.
Local Impact Funds: Context and rationale
Charities and social enterprises have a positive impact on society and economy
• 38% work in the 20% most deprived communities in UK (compared to 12% SMEs).
• £1 public investment generates £6.25-£8.33 of GVA (£3.57 across all markets).
There is a demand for social investment
• £1.3bn - £2.1bn annual demand for social investment, £286m of deals in 2012.
• 38% annual growth of the social investment market: £1bn of done deals in 2016.
There is a supply of social investment
• BSC - £600m.
• €6bn of EU funds, 2014-20, can be drawn on.
We need mechanisms for connecting supply to demand…
Local Impact Funds: Vision
• Be locally driven, flexible, and responsive to need and context.
• Provide a tailored package of support and finance for charities and social
enterprises at all stages, from start up to sustainability and growth.
• Build on existing local infrastructure and support, drawing into one place an
appropriate blend of national and local actors, enhancing not duplicating activity.
• Support social economic growth anywhere in the world. Don’t rely just on EU
funds, as any group of interested partners could collaborate on this initiative.
Local Impact Funds: Importance of ‘Local’
• Charities and social enterprises need to sell their products and services into
functioning local markets if they are to thrive.
• Local stakeholders can help enable the sustainability of Local Impact Funds:
• Clinical Commissioning Groups (CCGs)
• Local Authorities
• Police Crime Commissioners (PCCs)
• Other ‘buying’ institutions such as Universities, Housing Associations and
large local employers.
• Ultimately the Local Impact Fund can be an engine for public service reform,
and provide a hook for corporates to support the sector through CSR activity.
• The new Social Investment Tax Relief is a big opportunity to attract new and
local investors into solving local problems.
The time is now to make the most of these opportunities…
Local Impact Funds: Model
Type of investment:
Unsecured loans
Investment terms:
£50,000 - £250,000 (av.
Up to 5 years
Pipeline support:
Start up, incubation,
investment readiness
Different in each LIF area
Liverpool City Region Impact Fund: pilot
1. The Liverpool City Region Impact Fund (LCRIF) is a partnership between the
Adventure Capital Fund (SIB’s parent charity) and Social Enterprise North West.
2. We launched the £2m pilot Fund in January 2014. It will be open to applications
from charities and social enterprises in the LCR from 1 April 2014.
3. It draws on £1m of existing EU investment from the 2007-13 programme,
which ACF is matching with £1m from its Communitybuilders fund.
4. The LCRIF is linked to an existing £7m business support programme, Big
Enterprise in Communities (BEiC), being run by SENW.
5. The LCR LEP has allocated 2014-20 EU money to build on the pilot:
• £1.7m of ESF, for a £3.4m wrap around business support programme.
• £3m of ERDF, for a £6m Local Impact Fund.
GM and the 3 other North West LEPs are interested…
Scaling the model up
• The SIB Group has successfully applied to run the Liverpool City Region Impact
Fund and will manage ERDF as part of the UK’s first Local Impact Fund.
• We are on target to establish a second pilot in Northamptonshire.
• We will evaluate both pilots to share learning with interested stakeholders.
• We believe there may be demand for around 10 Local Impact Funds in 2014, and
up to 10 in 2015 – 2017.
• We will share learning and work collaboratively through a network of partners who
set up and manage Local Impact Funds.
• We are investigating the potential to create a template approach to developing,
financing and managing a network of Local Impact Funds.
More information about us
020 7842 7788