A British investment firm, Bridges Ventures, has successfully raised £25 million for investments in social impact bonds, according a report from the UK office of Third Sector (also here).
According to the story:
Antony Ross, partner and head of social sector funds at Bridges Ventures, said he expected the fund, which was oversubscribed, to give investors a financial return of more than 5 per cent a year.
The firm’s fund plans to invest in 10-15 social impact bond opportunities. It has already invested in two, one funding adoption services and another funding foster care placement.
Another British organization, Golden Lane Housing, raised £11m in another oversubscribed offer in July. According to a story in The Guardian, the organization listed its tradable “retail charity bond” on the London Stock Exchange. It would reportedly provide a 4.375% rate of return.
According to the organization, “the funds raised by the Bond will enable Golden Lane Housing to invest in buying and adapting 30 high quality homes for over 100 people with a learning disability in their local communities.”
- Nonprofit Quarterly: UK Advocate of Social Impact Bonds Declares Them “Clunky” (September 15, 2014)