30.11.09: Private Equity Foundation and Cinven co-invest to 'turbo charge' charities

In its first co-investment, the Private Equity Foundation (PEF) has joined forces with leading European buyout firm, Cinven, to give follow-on funding to PEF portfolio charity, School-Home Support (SHS). It brings PEF’s total contribution to SHS to over £900,000, which is enabling the charity to double the number of pupils it helps to make the most of their education by 2012.

Of the latest £265,000 donation, £165,000 has been provided by PEF and £100,000 by the Cinven Foundation. PEF’s original grant of £650,000 was made in March 2008.

SHS, which believes that learning is a child’s freedom, runs a national programme, putting independent, highly trained practitioners into schools to offer children and their families practical and emotional support, whatever they’re going through. As a non-timetabled resource, practitioners have time to listen to parents at the school gate, or make home visits, and by building trusting relationships with families, they are able to effectively resolve problems early, before they potentially become bigger issues.

SHS practitioners’ early intervention not only helps to re-engage children with their education but also helps their families and the wider community as well. For every £1 spent on SHS services, the exchequer saves £3.35 and the rest of society saves £21.14. Exchequer savings include the reduced cost of dealing with unemployment, crime, exclusion and the benefits of higher attainment. Non-exchequer benefits include the value of increased income as a result of higher attainment and the reduced cost to society as a whole as a result of fewer crimes.*

PEF’s initial grant and input of pro bono support has already had a transformative effect on the charity. In the last six months alone, SHS achieved a 17 per cent growth in service reach, increasing the number of schools with SHS practitioners to 218* across England, and that growth is continuing. Volunteer teams have worked on everything from strategy, sales & marketing training, improvement of financial and reporting systems, to an office move. The follow-on funding aims to accelerate SHS’s growth trajectory to reach many more children across the country.

Shaks Ghosh, Chief Executive of the Private Equity Foundation, said “This is PEF’s first co-investment and we would like to take this opportunity to thank the Cinven Foundation for joining us in backing SHS. The amount raised is enabling the building blocks to be put in place for literally thousands more children to benefit from the charity’s groundbreaking work.”

David Barker, Partner, Cinven, said “We are delighted to be working with PEF to support SHS, which is doing such fantastic work supporting children both in school and at home. SHS is proving PEF’s model - that by giving a combination of money, together with a range of expertise from the private equity community, you can turbo-charge effective charities.”

Jan Tallis, Chief Executive of SHS, said “This follow-on funding from PEF and the Cinven Foundation, will enable SHS to continue its unprecedented growth rate. But, such growth implies change and change is never easy. I really value all the support and input we get from the private equity community, through PEF, as we transform SHS into the national champion for excellence in school-home advocacy.”

* An economic analysis of SHS carried out by Matrix Evidence Ltd in October 2007 * Figures to 31 October 2009.

Research shows that in the average classroom:

12 children will have been bullied
8 will be living in poverty
7 will have witnessed domestic violence
6 will have been exposed to alcohol or drug misuse
1 child will be the main carer for the family member

For further information please contact Rosie Davey at rosie@privateequityfoundation.org or call 020 7749 5129 / 07827 804066