Big Society Capital and Bridges Ventures have launched a £14m Social Impact Bond (SIB) fund, in an effort to help channel finance into the social economy.
The first SIB was launched in September 2010 by Social Finance UK. The funds are effectively a contract with the public sector, in which an agreement is made to pay for significant improvements in social outcomes that will result in increased savings over the long-term.
The launch of the new £14m fund by Big Society Capital and Bridges Ventures is partially an attempt to tackle faltering government funding, by opening up the SIB route to a wider set of investors and social sector organisations that are looking for finance.
In an interview with Pioneers Post, Antony Ross, partner and head of social sector funds at Bridges Ventures said, “This is the first dedicated fund with a diversified portfolio across different interventions. Our fund will support bonds covering programmes ranging from homelessness of young people, to care of the elderly.
“It’s the first time knowledge and support around these financial services will be collected in one place, and we hope it will make a huge impact on the success of the SIB model over the next few years as more people become engaged with it.”
SIBs have become an innovative way of generating finance while benefiting individuals and communities. More information on the different types of ethical funds available can be found in the Blue & Green Tomorrow’s Guide to Ethical Funds 2013.