Bright Futures SITR Fund

By partnering with other social investors this fund expects to be able to invest in significantly larger deals than permitted just under the SITR rules currently and this should permit a faster repayment period.

The fund will be managed by Kin Capital, with Social Finance acting as investment adviser.It will partner with one or more Social investment Financial Intermediaries (SIFIs) who will provide the majority of the funding, thereby allowing a much larger deal size than the present SITR maximum.

Target charities will generally have at least a 3 year record and annual revenues exceeding £3m. Loan terms will usually be 3-5 years and the target IRR of the fund is 4% (excluding benefit of SITR relief). Each investor is expected to gain access to at least 5 enterprises.

Initial costs of the fund are zero but investee enterprises will pay an arrangement fee of 3% plus 2% per annum for monitoring and 0.35% for admin.

Investors will pay a performance fee of 20% of returns generated in excess of 4% per annum (excluding SITR relief).

About the manager

Social Finance is a leading social investment adviser and not-for-profit organisation.

Set up in 2007 it now has more than 70 staff and has been at the forefront of a number of innovations, including the first ever Social Impact Bond, the first Solar Bond and setting up Big Society Capital.

How to invest

SITR schemes are classified by the FCA as Non Readily Realisable Securities. These can only be promoted to investors who seek regulated advice, are classified as High Net Worth or Sophisticated investors or are prepared to certify that they will invest less than 10% of their net investable assets in such securities. If you fall into any of these categories, please contact us for further information:

Important Information

The information set out above is included for information purposes only and is not an offer or an invitation to buy or sell or a solicitation of an offer or invitation to buy or sell or enter into any agreement with respect to any security, product, service or investment. Any opinions expressed do not constitute investment advice and independent advice should be sought where appropriate. All information is current as of the date of publication, subject to change without notice, and may become outdated over time. Links to third party sites or pages are for information purposes only and such sites and pages are not part of this website or the responsibility of EQ Investors Limited and have not have been reviewed or verified by EQ Investors Limited. Following links to or from any other sites or pages shall be at your own risk. Social Investment Tax Relief schemes should be regarded as higher risk investments, suitable only for experienced investors who are able to withstand losses or for investors only investing less than 10% of their investable assets.

Overview

RegionNational
Social missionDiverse but in line with Big Society Capital Outcomes Matrix
Closing dateClosed
Raised / sought£1.4m /£1-3m
Min. investment£10,000