Hedge Funds Support Social Impact Investments in U.K. - The Minute

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Hedge Funds Support Social Impact Investments in U.K. - The Minute

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Social impact investments are a growth trend in Great Britain. Read why http://3bl.me/m6ghty #ImpInv via @3BLMedia #CSRMinute

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Monday, December 8, 2014 - 4:00pm

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Social impact investments, investments made with social benefit as well as financial profit as the bottom line, are a growth trend in Great Britain. The reason? The country’s austerity budget has resulted in significant cuts in government funding for social services. Government grants for social housing have shrunk from £3 billion to £500 million, according to The New York Times. Similar budget cuts have affected aid for the elderly and health care.

Cheyne Capital, a £6 billion, London hedge fund, is the most recent entity to fill the gap through social impact financing. Its Cheyne Social Property Impact Fund plans to buy property to rent to organizations that provide essential social services. The fund is raising £300 million, and aims at returns of 10 to 12 percent. Those returns are based on affordable rents and the fund’s ability to generate attractive debt financing.

The new fund got a kickstart from Big Society Capital, a government-backed finance group with a mission to support the British social investment market so that social enterprises get access to financing. To date, the group has invested £165 million pounds in organizations that lend to charities and social enterprises. New Philanthropy Capital, a charities research group, will help evaluate investment opportunities for the new Fund.

I’m John Howell for 3BL Media.

Video Source: Hedge Funds Support Social Impact Investments in U.K.

Keywords: 3bl media llc | Sustainable Finance & Socially Responsible Investment | Big Society Capital | CSR Minute | Cheyne Capital | Hedge Funds | New Philanthropy Capital | Social Finance | Social impact investments | U.K. | government funding for social services

CAMPAIGN: The CSR Minute

CONTENT: Multimedia with summary

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