The need to match investment with social needs

In the past two decades Social Investment has become a distinct concept and a distinctive market. Charitable foundations have moved from traditional subsidy towards preferential lending and anchor investing, while commercial corporate finance models have been tailored to the social economy. Crowdfunding has been applied to community projects, notably in renewable energy (led by Stone King partner client Energy4All).

In addition, impact investment has become a new campaign.

We also have a modest, prototype social investment tax relief and general Government concept that there is collaborative, co-investment available to support public policy imperatives, for example through Social Impact Bonds.

The next step is the transformative one, when all of these factors blend, so that Social Enterprise equates to enterprise and Social Finance equates to finance. The acute need for innovatory reform in public services and the urgent environmental agenda demand this, so that capital is applied not to maximise short-term privatised profit, but towards long-term, progressive socio-economic change, development and improvement, with balanced, reasonable, sustainable, ideally recyclable, financial returns.

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