The Big Society Capital group (formerly referred to as the "Big Society Bank") is a financial institution that aims to develop a market for investment made on the basis of positive social impact as well as financial returns. In so doing it will boost the ability of social enterprises, voluntary and community organisations (collectively known as "the social sector") to deal with social issues.
Big Society Capital will do this by supporting organisations that invest in the social sector. This support includes:
- Investing directly in these organisations, and co-investing alongside others in social investment funds, to help them grow in scale and provide more financing to frontline social sector entities;
- Investing in organisations providing infrastructure for the social investment market; and
- Investing in and underwriting innovative financial products such as social impact bonds.
Big Society Capital will also act as a champion for the development of social finance and the embedding of social impact measurement as an integral part of financing the sector.
Big Society Capital is currently in the process of being set up and is not yet open for business.
Over the next few months, Big Society Capital will be working with the social sector, Government, the Financial Services Authority and major UK high street banks to finalise the set-up of the organisation (including obtaining EU and UK regulatory approvals).
Outline Proposal to Government
More information can be found at the Cabinet Office Website
http://www.cabinetoffice.gov.uk/content/big-society-bank