Social Investment Fund for London
Our Social Investment Fund empowers London’s social entrepreneurs and social enterprises to create a city where the capital’s communities can prosper and thrive
Our Social Investment Fund provides accessible, flexible and long-term finance for social change across London.
City Bridge Foundation has a fund of £22 million to support social investment across London. We are willing to take risks, innovate, learn, and to do better. We recognise there is an imbalance of power between investors and investees, so we approach our work with fairness and equity.
This Social Investment Fund is specifically designed to minimise disadvantage and marginalisation across London, supporting our wider funding and philanthropic work. We are interested in hearing from organisations who feel the work they do fulfils these aims.
What we invest in
We invest in a diverse range of social entrepreneurs and social enterprises who are working to support Londoners.
We will consider both debt and equity-type arrangements.
Debt arrangements involve providing repayable finance, such as loans, where the social enterprise or entrepreneur commits to repaying the amount borrowed over time, often with a predetermined interest rate.
Equity-type arrangements, on the other hand, involve investing funds in exchange for a stake in the organisation, where returns are linked to the success and growth of the enterprise.
The Fund is overseen by our Funding Committee and managed by our funding team.
At times when we cannot invest, perhaps due to mission misalignment, we will try our best to facilitate an introduction to other, better-aligned social investors.
Social investment criteria
Meeting the criteria of the Social Investment Fund is not in itself sufficient condition for securing investment. Decisions to invest are made at the sole discretion of City Bridge Foundation and may be subject to conditions.
Each individual social investment is targeted to generate both a social return for society, and a financial return for City Bridge Foundation.
You can find more information on social investments and related funding at the Good Finance website.
Social return
Each investment must offer a clear social benefit to London. Investees must be capable and willing to provide regular impact updates during the period we invest.
Financial return
Social investments typically deliver a modest financial return to City Bridge Foundation. This allows us to maintain our portfolio in line with inflation. It also allows us to reinvest our capital in future investments. We are flexible on return requirements and consider each request on a case-by-case basis.
Size of investment
We do not have a minimum size of investment. Our smallest investment to date has been £50,000. Larger investments will depend on the availability of uncommitted funds. So far, our largest investment has been £3m.
Eligibility for social investment
We can consider:
- Direct investments (providing returnable funds to organisations which pursue charitable, community or social objectives)
- Indirect investments (into funds managed by others to reach a greater number of charities and social enterprises)
We can consider direct investment in organisations that:
- Have a financially viable business plan which shows how the investment will be repaid
- Have a clear case for social impact
- Have strong management and governance
- Have a clear exit strategy / end term for the investment to be repaid
Direct investments will normally be made for purposes of either: service expansion; organisational development; purchase of property or other capital items that support service delivery.
In addition to making direct investments in organisations that are registered with the Charity Commission or Community Interest Company Regulator, direct investments can also be made in for-profit social sector organisations where the organisation’s governance embodies and protects its social mission.
As a charitable investor, we always need to give consideration to the Charity Commission’s CC14 Guidance on private benefit.
Investment can be made in funds managed by others where those funds:
- Benefit Londoners
- Have charitable, community or social benefit and clearly articulated social returns
- Show that the distribution of profits generated by the funds are capped to investors
- Provide an assessment of the fund’s performance in social and financial terms to investors on a regular basis
In all instances, our key concern is the benefit to Londoners.
Funder Plus
Recipients of City Bridge Foundation’s social investments are eligible for our Funder Plus offer. This is a range of additional, non-financial support, including tailored capacity-building support to create lasting skills in areas such as management, charity governance, digital and communication.
Contact us about social investment
If you would like to have a chat about social investment, please book a call with us, or drop us a line. We are here to help and advise.
Book a call
If you are interested in applying for social investment or want to understand more, use the button below to book an initial 15 minute call with us. You will receive an automatic confirmation of your booking.
Email us
If you need more information or would like to discuss a potential social investment, you can also email Nkechi Adeboye, our Social Investment Analyst and Relationship Manager.
Email Nkechi: nkechi.adeboye@cityoflondon.gov.uk
Leave a message
If you would prefer to call, please dial 020 7332 3710. Your call will be answered by the City of London Corporation’s contact centre. They will pass your message onto us.
Our advisors
We are grateful for the work of our appointed advisors who support us to deliver our vision.