Social Impact Investing

quasi-equity instruments
Bridges Ventures Social Entrepreneurs Fund
Impact First Investor
Investor
Multiple Investors
3-5%
Impact investment
fund
Bridges Ventures Social
Entrepreneurs Fund
area of impact
Scaling Up Social Enterprises
geography
United Kingdom
“While Bridges
Ventures’ CDV Funds
aim to maximise
financial returns
subject to a social
screen, the Bridges
Social Entrepreneurs
Fund aims to maximise
social impact subject
to financial criteria,
including a sustainable
business model.”
Skye Heller
Associate
Bridges Ventures
Multiple Investors
••
The Bridges Social Entrepreneurs Fund has raised over £8MM from leading individuals, institutions and foundations
from the financial sector, government and NESTA, the National Endowment for Science, Technology and
the Arts
••
The funds have been raised through a mixture of donations to the Bridges Charitable Trust and Investments into a
Limited Partnership structure. If the fund can demonstrate a track record of returns, Bridges Ventures believes it
can raise further funding from socially motivated investors rather than further philanthropy
The Bridges Ventures Social Entrepreneurs Fund (http://www.bridgesventures.com)
••
Social enterprises are businesses with social objectives whose surpluses are principally reinvested for that purpose
in the business or community, rather than being driven by the need to maximise profit for shareholders and
owners
••
Successful social enterprises deliver an important and innovative means of achieving a sustained social impact
••
Bridges Social Entrepreneurs Fund seeks to address the funding gap that exists for social enterprises that are
looking to scale up but cannot generate market rate returns or offer the usual exit opportunities and therefore
cannot attract commercial equity
••
The fund targets enterprises based in England that deliver high social impacts and that operate scalable and
sustainable business models
••
The fund expects to make around 10-15 investments in the £500K - £1.5MM range over the next 4-5 years
••
The investments will be through equity or quasi-equity instruments with flexible structures, such as subordinated
debt with royalty payments that rise with revenues
••
The fund will also play an active role in providing strategic and operational assistance to the social enterprises
that it backs
••
The fund will maintain a balanced portfolio of early stage and growth capital investments and acquisitions;
the investments will also be made in a wide variety of sectors and models
Impact
social/environmental impact
••
Social Impact is measured using the Bridges Social IMPACT Scorecard
financial impact
••
The Fund aims to maximise social impact whilst seeking a
positive financial return
••
The financial returns target for the Fund, net of fees and
losses, is 3-5%
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Investing for Impact: Case Studies Across Asset Classes