Impact Ventures UK (LGT) | Big Society Capital

You are here

Impact Ventures UK (LGT)

Strategy area | 
Product type | 
Region | 

IVUK

Growth capital for social enterprises that will improve the lives of disadvantaged people in the UK.

Social impact

Charities and social enterprises in the UK are critical in addressing some of the most entrenched problems facing society. However they cannot do this without financial support and investment to allow them to grow their services and their impact.

Impact Ventures UK (IVUK) is an ‘impact-first’ fund that will provide long-term growth capital for social enterprises with innovative business models that aim to deliver a positive and sustainable improvement to the quality of life of less advantaged people in the UK. IVUK are highly engaged with their ventures and provide hands on advice and support in addition to capital.

The fund measures both the reach and depth of impact of their investees and provide regular updates to investors. IVUK sets impact indicators with all of its investees. Some of the indicators are used to build a comprehensive picture about impact performance. Data is reported to Big Society Capital on a quarterly basis.

Financial rationale

The fund will invest risk capital into social enterprises with proven business models that have the potential to scale and increase the delivery of their social impact in the UK. It invests from £500,000 in social enterprises with a proven business model achieving significant social impact in the UK, to as much as £5 million over time for larger social enterprises. It has already invested in more than 50 ambitious social enterprises implementing innovative solutions to some of the most challenging social issues.

Market development

Our investment into the fund brings an experienced social impact investment fund manager into the UK. Over the past six years, LGT Venture Philanthropy has established itself as an impact investor in emerging markets with a rigorous investment process. They have made over 25 investments to date, touching the lives of approximately eight million people through the businesses they have supported.

Berenberg has undertaken a significant role in bringing together the relevant experts to support this fund, which brings additional experience and capital into the market. Over the past few years, the team at Berenberg have been actively involved in understanding developments within the UK social investment market and this fund creates a product to enable interested investors to directly invest, learn and participate in businesses that are creating positive social impact in the UK.

Investment details

  • Big Society Capital investment of £15,020,798
  • Total fund size of £36,075,150
  • Co-investors: European Investment Fund, LGT Venture Philanthropy Foundation, Waltham Forest Local Authority Pension Fund, The Golden Bottle Trust, Anton Jurgens Fond Charitable Trust, Shared Impact, The University of Northampton, Deutsche Bank Impact Investment Fund, Trust for London
  • Arranger/Manager: LGT Venture Philanthropy and Berenberg Bank
Last updated | 
20 January 2016