Big Society Capital records first profit

The social investment wholesaler reports an £800k surplus in its 2017 accounts

The social investment wholesaler Big Society Capital has recorded a profit for the first time.

In its annual review for 2017, published today, the lender says it made a net profit of £800,000 during the course of the year, the first time it has recorded a surplus since it was set up in 2012.

The review says the profit can be attributed to the growth and performance of its social investment portfolio, and BSC is expecting its portfolio to increase significantly in the next few years.

The report says that a total of £764m of the £1.1bn BSC and its co-investors have allocated to charities and social enterprises had been drawn down by the end of 2017.

BSC made 19 investments in 2017, the review shows, with a combined value of £94m.

In comparison, 2016’s annual review showed that £893m had been allocated to charities and social enterprises by BSC and its co-investors by the end of 2016, £340m of which was funding from BSC.

BSC’s 2017 review also shows that 14 per cent of its co-investors are UK charities and foundations.

Cliff Prior, chief executive of BSC, said: "It’s been a big year for Big Society Capital. There has been growth across the whole social investment market, and we saw funds committed by us and our co-investors pass the £1bn mark.

"More than 800 charities and social enterprises are now using repayable finance from BSC and our co-investors, tackling some of the toughest social challenges faced in the UK today.

"What’s more important is that organisations are using social investment alongside other sources of finance, while collaboration and partnership are coming to the fore in creating solutions for social issues."

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