The Prince’s Regeneration Trust Social Investment Rosie Fraser 9 October 2014

What is social investment Growing pool of investors seeking to use their money to generate social impact and a modest financial return. The original amount funded is repayable at the end of the project, plus a modest return Suitable for projects where part or all of the building has a commercial use and therefore can generate a surplus income once the building is operational Can be used to pay for both revenue and capital costs Available in many different forms:  Debt  Equity  Quasi-equity

Benefits and Risks Benefits of Social Investment New source of funding that can easily be combined with grants and donations Flexible and efficient – linked to broad social outcomes rather than specific activities Social investors are typically highly engaged with the organisations they support and can share their skills and experience Enables capital to be recycled to support more projects in the future Risks of Social Investment The investment is repayable therefore projects need to be confident they can repay Social investors are likely to require a lot of business planning work upfront Projects that utilise social investment will need to evidence their social impact

PRT Community Impact Fund Mission:To boost the long term capacity, confidence and wellbeing of deprived communities across the UK through the adaptive reuse of at-risk locally important buildings Long term ambition to set up a c. £40m social investment fund, to enable communities quickly to secure and redevelop their important local buildings, with the support and experience of PRT. We are looking to invest in the region of £1-5m per project. Large projects over £8m are likely to be suitable. A pool of grant funding will be available to enable local communities apply to PRT for support in assessing the viability of their proposals.

PRT Community Impact Fund Significant progress made in the past 12 months: Big Lottery grant secured in March to support the development of the fund Interest from a number of major funders such as Big Society Capital (BSC) and Big Lottery, with a first round pass from BSC awarded in July. Currently in discussions with a number of private investors who will also contribute to the fund. Currently preparing the full business plan and legal structure, aiming to launch early 2015 We are keen to hear from eligible projects that are interested in the fund, to help shape the proposal.