Social investment sector estimated at £1.5bn

New report from Big Society Capital estimates the market is more than double the level of five years ago and being used by over 3,000 charities and social enterprises

by Ben Faulkner, 29th March 2016

A new report released last week by Big Society Capital highlights the growing social investment market and underlines the potential for social investment tax relief (SITR).

The first comprehensive estimate of the size and shape of social investment in the UK, places a value on the sector of around £1.5bn at the end of 2015. The 2015 calendar year saw around £427m committed; up from only £165m in 2011. A lot of the growth in social investment deal-flow has come via higher risk products.

The 2015 calendar year saw around £427m committed; up from only £165m in 2011.

Social property funds, unsecured loans, community shares, charity bonds and equity-like products each represent between 2 per cent and 10 per cent of overall social investment, suggesting that social investment products are becoming more diverse and more able to bear risk.

The report says that social impact bonds and social investment tax relief were worth £14m and £1m respectively in 2015. SITR is forecast to grow significantly, once the cap on the amount an organisation can receive is raised from £290,000 over three years to £5m a year and £15m in total. The study also estimates the UK investor-led impact investment market to be worth £3.2bn.

To read the full report visit: http://www.bigsocietycapital.com/latest/type/research/size-and-composition-social-investment-uk

About the author: Ben Faulkner

Ben joined EQ in 2015 and has over 14 years’ of experience across the pensions, financial technology and wealth management sectors. At EQ, he is responsible for developing, managing and implementing the marketing communications strategy. Outside of work, Ben’s two daughters keep him busy. He enjoys keeping fit, especially running and cycling along the Pilgrim’s Way.