Our Investment Strategy

The third sector is already an active lending market, with charities and social enterprises receiving £3.5 billion of loans in 2012/13. Furthermore, the sector received £13.3 billion from government bodies in 2013. 83% of this funding was earned through contracts or fees for services provided.

The sector represents an increasingly important force in supporting and delivering high quality public services, accounting for 9.7% of all local authority contracting – a number set to increase over the term of the next parliament. To respond to this growing demand for delivering high quality public services, charities and other social enterprises need to access growth capital like never before.

The Bright Futures Fund will enable charities and social enterprises to access growth financing in a more flexible way, and at a potentially lower rate than which they have previously been able to secure, which will allow them to effectively scale their activities and tackle social issues affecting vulnerable groups.

Targeting established trading social enterprises with commercially minded and proven management teams will contribute to a robust investment opportunity. Investing primarily though debt instruments will ensure certainty around timing of capital repayment and best matches requirements on the part of social enterprises as their structures often do not permit equity investments to be made.

 

What is SITR?

SITR is an incentive for social investment through the personal tax system.

It is the first tax incentive to target social investors and Social Enterprises, and provides tax relief to qualifying Investors who make eligible social impact investments.  Individuals receive a 30% tax break when investing into an eligible organisation.

For more information on how SITR can benefit you as an investor please consult HMRC's guidance.