Social impact investment fund total investments reach £1m

Date: 18 Oct 2023

Ashleigh John

The Growth Impact Fund (GIF), developed by Big Issue Invest and UnLtd, has announced its second close at £1.75m, following £1.5m of funding from Macquarie Group Foundation and £250k from BD Giving. The GIF has provided a further £500,000 in investment to two social purpose organisations, taking the Fund’s total investments made to £1m.

The innovative social impact investment fund aims to reach diverse-led Social Purpose Organisations. A targeting £25m evergreen fund, the GIF invests in early and growth-stage organisations led by underserved entrepreneurs. The Fund was developed by Big Issue Invest and UnLtd: the Foundation for Social Entrepreneurs.  

Pre-Covid, a survey by Social Enterprise UK found that Black and ethnic minority-led social enterprises were applying for and receiving finance at just one quarter of the level for the rest of the social enterprise sector. The purpose of the GIF is to address the barriers that these, and other, underserved entrepreneurs face. The GIF aims to give them access to capital, and this successful second close will enable them to reach more impactful entrepreneurs.

The second close saw investment from the Macquarie Group Foundation, which drives social impact work for financial service provider Macquarie Group. Their investment was attracted by the combination of deploying funds in a meaningful and structured way to social entrepreneurs, with realistic investment returns.

Investment was also provided by BD Giving, who celebrate social entrepreneurs in the Barking and Dagenham areas of London. They were drawn to GIF with the aim of creating a partnership to develop a local pipeline.

Susan Clear, Director of Social Impact Investing for the Macquarie Group Foundation, said: “This is the first social impact investment the Foundation is making in the UK and demonstrates the expanding impact of our community efforts in this market.  With a focus on investing in organisations led by underserved entrepreneurs, the Growth Impact Fund aligns with the Foundation’s mission to drive social impact work for Macquarie, and support our people, businesses and communities to build a better future.”

Barking and Dagenham resident and Community Steering Group member Irina commented: “We always knew that impact was as important as return. When we had about twenty investment proposals to consider, we started to realise that the potential for learning and the relationship we could build were more important than we had initially thought. We chose Growth Impact Fund for our community because the investment felt more like a partnership.”

Sarah Faber, Investment Director at Big Issue Invest, said: “It’s a testament to the design and work behind the fund that we have attracted support from such varied funders from a global organisation like Macquarie to a local community organisation such as Barking and Dagenham Giving. Both funders care about the change we are looking to achieve and are keen to learn from our work.”

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