Social Impact Accelerator Fund | Big Society Capital

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Social Impact Accelerator Fund

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FSE Group

Flexible loans to regulated charities and social enterprises

Social impact

FSE will support the growth of the market by increasing access to finance for social enterprises and charities seeking to expand and improve their delivery.

The Social Impact Accelerator fund will identify, track and report on the social impact performance of each investee across the portfolio. The fund has defined social outcome areas that it will use to screen potential investees and to record the impact of each investment.

A three-measure themed framework will be used for each investee, measuring the Breadth, Depth and Quality of impact expected from each investment.

Financial rationale

The Fund is structured as a Loan Facility to an FSE wholly-owned CLS. Of the £10m commitment from us, £5m is contingent on FSE raising an additional £5m in match-funding during the first two years of the fund’s life. The fund is expected to be restructured into a Limited Partnership to accommodate additional investors into the fund once match-funding is raised.

FSE is targeting an average gross IRR of 9% to achieve the funds target returns.

Market development

The Fund will support the growth of the market by increasing access to finance for social enterprises and charities seeking to expand and improve their delivery. The fund is specifically targeted at unsecured loans of a slightly larger size in comparison to other comparable funders. FSE will leverage their experience from their core small and medium enterprise lending portfolio to deliver social impact.

FSE has a minimum threshold of £200k and a maximum investment size of £1 million.

Investment details

  • Fund size: £10 million
  • Big Society Capital's investment: £10 million (£5 million drawn and £5 million contingent on further match)
  • Manager/Arranger: The FSE Group
Last updated | 
20 January 2016