September 13. City of London Social Investment Event

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1 September 13 City of London Social Investment Event New social investment commitments announced by Big Society Capital and City of London Corporation, as report reveals demand for social investment could grow to 1 billion by 2016 Big Society Capital, the world's first social investment bank, will today announce details of its initial investment commitments, totalling 37 million, since it was launched by the Prime Minister in April The announcement will be made at a reception hosted by The City of London Corporation, which will be an opportunity to brief City investors and financial services professionals about social investment and the role of Big Society Capital in supporting the development of the ground-breaking market in the UK. Big Society Capital's investments back social finance intermediaries that directly fund social enterprises or infrastructure for the market. (Details of the investment commitments are in the Notes below.) Big Society Capital s CEO, Nick O Donohoe said: Big Society Capital has made significant progress since our launch and we are on target to make investment commitments of around 50 million by the end of The quality of commitments made so far is encouraging and they reflect diversity of investment type and by geographic region in the UK. The Guildhall event is an opportunity for City professionals to explore how they can further engage with this initiative. The announcement comes hot on the heels of two reports that paint an optimistic picture of social investment in the future. The first, from The Boston Consulting Group, finds that demand in the social investment market in England could reach 1 billion by 2016, six times what it is today. In the first attempt to establish the future size of the social investment market, BCG found that more government contracts, private consumer spending, and corporate social investment will be directed toward charities and social and community enterprises than ever before, and as a result, the demand for capital in the social sector could grow at 38% a year. A second report, just published by the International Centre for Social Franchising, shows how some of this demand will come in the form of social franchise models, providing new opportunities for both investors and social enterprises.

2 Adrian Brown, Principal at The Boston Consulting Group who led the BCG research, commented: "Social investment is clearly a market ready for growth. There is increasing interest from commercial and other investors, and growing demand for capital from social organisations. There is continued need for strong, positive action from donors, commissioners, investors and market intermediaries." The City of London Corporation will also be announcing its own 20 million social investment fund. The City of London Corporation Social Investment Fund (CoLCSIF) is a significant new fund which will play its part in building a thriving social investment market by making both direct and indirect investments. The fund has a principal focus on Londonbenefit but is also interested in opportunities across the UK and internationally. The City of London s elected Policy Chairman Mark Boleat commented: The City of London Corporation see social investment as a vital way of financing the services delivered by charities and social enterprises. It can create better results and value for the public by unlocking the resources and skills of the financial sector. At the same time, this emerging investment category responds to an urgent question facing the City, which is how to put the word service back into Financial Services. The City of London Corporation will therefore be announcing details of its own 20 million investment allocation towards the social sector at the Guildhall on Thursday evening. It is hoped that the rest of 2012 will see other city institutions following suit. Mark Boleat will host the City of London and Big Society Capital event entitled Harnessing Entrepreneurship and Capital Markets to address Social Issues at which the headline speakers will be: the Rt Hon Oliver Letwin MP, Minister for Government Policy Advice, Nick Hurd MP, Minister for Civil Society; Sir Ronald Cohen and Nick O Donohoe, Chairman and Chief Executive of Big Society Capital respectively; and Adrian Brown. The Cabinet Office is supporting the growth of the sector through various initiatives. These are outlined in the latest social investment strategy update document: Growing the social investment market: HMG social investment initiatives (see Notes). The key initiatives include a 10 million Investment and Contract Readiness Fund (launched in July by the Social Investment Business) and the 10 million Incubator Fund for early stage investment in social enterprises (to be administered through the Big Lottery Fund). Minister for Civil Society, Nick Hurd, said:

3 We want to make it easier for charities and social enterprises to access capital so that they can do more. Britain is rightly recognised as a world leader in developing the social investment market, not least because of Big Society Capital. We want to build on that momentum by helping to create new investment opportunities". Contacts: -Ends- Big Society Capital Alastair Ballantyne +44 (0) / aballantyne@bigsocietycapital.com HB Communications Tom Hampson Bellon / Toby Guise / Martina Scapin: +44(0) / m.scapin@hbcomms.com City of London Greg Williams +44 (0) greg.williams@cityoflondon.gov.uk The Boston Consulting Group Claire Hopkins +44 (0) hopkins.claire@bcg.com Link to the Boston Consulting Group Report: Link to the International Centre for Social Franchising Report: Link to Cabinet Office: Growing the social investment market: HMG social investment initiatives. iatives_sep2012.pdf

4 Notes to editors: About the City of London Corporation The City of London Corporation is an elected entity which supports and promotes the City as the world leader in international finance and business services and provides local services and policing for those working in, living in and visiting the Square Mile. As part of its remit for financial services, it is committed to helping London develop as a global centre for social investment, working closely with financial institutions, pioneers, partners and professionals and overcoming barriers to wider engagement. Among other services provided by the City of London Corporation are: the Barbican Centre and the Guildhall School of Music & Drama; the Guildhall Library and Art Gallery and London Metropolitan Archive; three independent schools and three City Academies; five Thames bridges (including Tower Bridge and the Millennium Bridge); the Central Criminal Court at Old Bailey; over 10,000 acres of open spaces (including Hampstead Heath and Epping Forest); three wholesale food markets; London s Port Health Authority and the Animal Reception Centre at Heathrow. The City of London Corporation works in partnership with neighbouring boroughs on the regeneration of surrounding areas and the City of London Corporation s charity, the City Bridge Trust, makes grants of more than 15 million annually to charitable projects in London. Big Society Capital is the world's first social investment bank. BSC formally launched in April 2012, with an estimated 600 million of equity, of which 400 million is unclaimed assets left dormant in bank accounts for over 15 years and 200 million is from the UK s largest high street banks. Big Society Capital seeks to support the growth of a social investment market in the UK by revolutionising the way in which the social sector is funded. Through supporting the growth of social investment finance providers, BSC will improve access to innovative forms of financing, and connect the sector to capital markets. Investment Name BSC Commitment Description Results Fund 10,000,000 Fund to provide finance for social sector organisations competing for Government payment by results contracts (including through Impact Ventures UK Fund social impact bond structures) 10,000,000 Cross sector impact investing fund managed by LGT Venture Philanthropy in association with Berenberg Bank, providing growth capital to social enterprises in the UK Nesta Impact Investment Fund 8,000,000 UK based impact investing fund providing early stage capital targeted towards the areas of Ageing

5 Community Land and Finance The Licence Fund/Franchising Works PURE ClearlySo Well, Learning and Employability of Children and Young People, and Sustainable Communities 2,500,000 Loan fund providing secured loans to Community Land Trusts to finance the building and purchase of affordable rental homes to members of local community. The homes are predominantly in rural areas that are underserved by housing associations and social housing 1,000,000 Loan fund to enable long-term unemployed individuals to purchase and operate franchise licences in Manchester and Newcastle 1,000,000 Loan fund to finance small community owned renewable energy projects in disadvantaged communities. The excess revenues generated will be used to deliver social impact within the local community 1,000,000 A staged investment in key social investment market infrastructure. ClearlySo provides capital raising services for social enterprises and social impact investment funds Social Investment Market CIC 875,000 BSC has made a 875,000 secured loan to enable SIMCIC to underwrite the issuance of a fixed income bond in order to build the market for further issuance of bonds by charities and social enterprises Social Stock Exchange 850,000 An investment into the SSE, again a key piece of market infrastructure. SSE aims to become the world s first dedicated regulated investment platform and exchange for Social Businesses Community Generation Fund / Finance South East 750,000 Loan fund that will lend to disadvantaged communities to enable them to finance community owned renewable energy infrastructure. Again, the excess returns generated will be recycled into local social initiatives Triodos New Horizons 450,000 Social Impact Bond to finance programmes supporting young people moving from Key Stages 3 & 4 (including those who are currently in the care system, young offenders and who have learning difficulties) and those Not in Employment, Education or Training (NEETs) to Employment, Education or Training in Merseyside ThinkForward Social Impact / Private Equity Foundation 450,000 Social Impact Bond to finance intensive school based support programmes designed to prevent young people from becoming Not in Employment, Education or Training (NEETs) in Tower Hamlets, London