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The Growth Impact Fund announces its second close at £1.75m
The Growth Impact Fund announces its second close at £1.75m
Written by
Mathu Jeyaloganathan
Head of Investment
Tuesday 17th October 2023 – The Growth Impact Fund has received £1.5m from the Macquarie Group Foundation, which drives social impact work for Macquarie Group and £250,000 from Barking and Dagenham Giving (BD Giving).
The news comes as the Fund confirmed its second close and provided a further £500,000 in investment to two social purpose organisations, taking the Fund's total investments made to £1m.
The Growth Impact Fund is a targeted £25m evergreen fund, investing in early and growth stage organisations led by underserved entrepreneurs, developed by Big Issue Invest (BIIFM) and UnLtd: The Foundation for Social Entrepreneurs.
Before COVID, Social Enterprise UK's State of Social Enterprise 2019 survey found that Black and ethnic minority-led social enterprises were applying for and receiving finance at just one quarter the level for the rest of the social enterprise sector1. Growth Impact Fund is working to address the barriers these (and other) underserved entrepreneurs face and give them access to capital and this second close means that they will be able to reach more of these impactful entrepreneurs.
In its latest round of fundraising GIF attracted investment from Macquarie, which was attracted by the combination of deploying funds in a meaningful and structured way to social entrepreneurs with the least access to funding, and a realistic investment return.
They also received investment from BD Giving, who are working to celebrate social entrepreneurs in Barking and Dagenham in London and were interested in the way that they could partner with GIF to develop a local pipeline.
Attracting two such different funders into the second close reveals how many different organisations identify with its ambitions of tackling inequality, both in access to capital and in the UK more broadly.
Susan Clear, Director of Social Impact Investing for the Macquarie Group Foundation said: ""This is the first social impact investment the Foundation is making in the UK and demonstrates the expanding impact of our community efforts in this market. With a focus on investing in organisations led by underserved entrepreneurs, the Growth Impact Fund aligns with the Foundation's mission to drive social impact work for Macquarie, and support our people, businesses and communities to build a better future.""
""We always knew that impact was as important as return,"" said Irina, Barking and Dagenham resident and Community Steering Group member. ""When we had about twenty investment proposals to consider, we started to realise that the potential for learning and the relationship we could build were more important than we had initially thought. We chose the Growth Impact Fund for our community because the investment felt more like a partnership.""
Sarah Faber, BII's investment director, said: ""It's a testament to the design and work behind the fund that we have attracted support from such varied funders from a global organisation like Macquarie to a local community organisation such as Barking and Dagenham Giving. Both funders care about the change we are looking to achieve and are keen to learn from our work.""
Mathu Jeyaloganathan, Head of Investment at UnLtd, said: ""Attracting investment from Macquarie and BD Giving is a significant achievement for the Growth Impact Fund. We are excited to be working with them in the future to support our enterprises.""
The Fund has made a £250,000 investment in Lightning Reach, a platform that makes it easy for people to find and apply for a wide range of personalised support in one place. To date, Lightning Reach has facilitated over £6m in grants to individuals in need of financial assistance and registered over 60,000 users.
Almost £260,000 was invested in chocolate company Harry Specters, which provides paid employment, work experience and training opportunities for young autistic people. Founded in 2011, the company now employs 12 Neurodiverse individuals and has provided over two hundred autistic people with free training and work experience.
Social enterprises interested in the Growth Impact Fund can visit growthimpactfund.org.uk to learn more and register their interest or email [email protected].
For media requests, interviews, or to learn more about the fund please contact – [email protected]
Editors Notes:
Big Issue Invest Fund Management (BIIFM) is the fund manager for the Growth Impact Fund, and the fund is addressed to professional investors only. Capital at Risk. BIIFM Ltd is authorised and regulated by the Financial Conduct Authority (FCA) FRN 610618.
Investors in the Growth Impact Fund include:
- Bank of America
- Access- The Foundation for Social Investment.
- Big Society Capital
- Macquarie
- BD Giving
- Greater Manchester Combined Authority
- University of Edinburgh
- Scope
- Trust for London
- Joseph Rowntree Foundation
- Charities Trust
- Barrow Cadbury Trust
- Philanthropist Nick Marple
- Unltd
- Big Issue Invest
About The Growth Impact Fund
The Growth Impact Fund is designed for and with social entrepreneurs, to create market-leading social investment that is fit for purpose and driving social equality.
The fund will:
- Provide investees with the option of patient, flexible capital, or alternative options including 70% of funding invested through equity and quasi-equity products.
- Provide grant funded wrap-around support across the investment process (from early-stage enterprises to established organisations, and pre-investment to post investment)
- Commit to ensuring the team, management, and governance of the fund are representative of the entrepreneurs the fund looks to support
About UnLtd
UnLtd funds and supports social entrepreneurs tackling the key issues facing society. Since 2002, it has supported over 15,600 social entrepreneurs through awards and investments, totalling nearly £95 million.
Facebook: unltd
X: @unLtd
YouTube: unltdvideos
About Big Issue Invest
Big Issue Invest (BII) is the social investment arm of The Big Issue. BII offers loans and investment from £20,000 to £4 million to social enterprises and charities across the UK. It currently manages or advises on over £470 million of impact funds. Since formation in 2005, it has provided over £80 million in impact loans to more than 550 social enterprises. In 2021 alone, BII invested over £35 million in 135 organisations.
Facebook: bigissueinvest
About Shift
Shift are a design and learning partner to the Growth Impact Fund.
Shift tackles social problems through the power of design thinking. Together with partners, they help transform systems, services and organisations, using design thinking to support social organisations to maximise their impact.
Shift brings together rigorous research, bold creativity, strategic thinking and an open and collaborative mindset to design sustainable solutions to challenging social problems.
X: @shift_org
About Harry Specters
Harry Specters is a Cambridgeshire based social enterprise crafting award winning chocolates and providing free training, work experience and employment opportunities for young autistic people.
About Lightning Reach
Lightning Reach is a financial support portal which makes it easy for people to find and apply for a wide range of personalised support (including grants, benefits, help with household bills and other vital resources) in one place. Their platform can be used by organisations to streamline or enhance the support they offer to vulnerable customers, using innovative technology such as open banking and ID verification, or by individuals seeking to improve their financial wellbeing.
Founded during the pandemic, Lightning Reach has registered > 60,000 users and enabled > £6m in funding to individuals.
About The Macquarie Group Foundation
The Macquarie Group Foundation (Foundation) drives social impact work for Macquarie. The Foundation supports its people, businesses and communities to build a better future. The Foundation aims to leverage both financial and non-financial resources to achieve the greatest social impact possible.
In the year to 31 March 2023, the Macquarie Group Foundation, together with Macquarie Group staff, contributed more than $A52 million to over 2,500 community organizations around the world and contributed over $A6.6 million in value donated through skilled volunteering. Since it was established in 1985, the Foundation and Macquarie staff have contributed more than $A570 million globally.
X: @macquarie
Citations
1. ^ ""Social Enterprise UK, Capitalism in Crisis?, September 2019""