29.07.11: PEF receives first Big Society Capital Investment
The Private Equity Foundation is the first recipient of investment from the Big Society Capital (formerly Big Society Bank) which was launched today. This investment from dormant accounts is to support the Private Equity Foundation’s mission of helping disadvantaged young people into employment, education or training.
Shaks Ghosh Chief Executive of the Private Equity Foundation:
“This is incredible news enabling the Private Equity Foundation to help thousands more disadvantaged young people reach their full potential. We are proud to be the first investment as the Big Society Capital leads a new era of social investment in the voluntary sector”
To develop the Big Society Capital, the Big Lottery Fund set up an Investment Committee to allocate initial investments. Big Society Capital is run independently from government with decisions around funding being made by an impartial investment committee. Its aim is to play a critical role in speeding up the growth of the social investment market. It will ensure socially orientated financial organisations will have greater access to affordable capital, using an estimated £400 million in unclaimed assets left dormant in bank accounts for over 15 years and £200 million from the UK’s largest high street banks (the four Merlin banks).
Minister for the Cabinet Office, Francis Maude, said:
“There are few moments like this when something happens that can really change the world. We’ve all heard about a small charity or social enterprise sweeping away entrenched local social problems. But we have not seen a significant commitment to help social innovations grow and be implemented on the national stage until now”
The money will be spent on social investments to help young people not in education, employment or training. Once we have finalised the social investments we will announce the details.
For the Cabinet Office press release on the launch of Big Society Capital please see click here: http://www.cabinetoffice.gov.uk/news/big-society-bank-launched
The Private Equity Foundation
The Private Equity Foundation is committed to raising outcomes for disadvantaged young people through investing in the voluntary sector. Over the past five years the Private Equity Foundation has come to understand the issues faced by young people. We work with charities to ensure they are efficient, sustainable and scalable delivering the very best outcomes but our expertise does not stop there. Social investment is reliant on both an understanding of charities and their interventions and a sound understanding of investment and financial markets.
PEF has long been thinking about the most strategic difference it can make given its philanthropy backing. This is a great opportunity to kick start new private sector investment in disadvantaged young people. Working together social investment is a way forward to tackle both the needs of young people and the voluntary sector. By using this method we hope to reach more young people at risk and provide better funding for best in class interventions.
To date PEF has supported 40,000 children and young people, raised £20 million since 2006 and brokered 17,000 hours of pro bono support. Over the past year PEF has worked to feed in its expertise to the Graham Allen review and used this expertise to work with Government about how best in class intervention can be financed through the creation of new investment vehicle/tools.
Contact: Joe Hewitt joe@privateequityfoundation.org 0207 749 5131