Apr 11, 20231 UNCLASSIFIED

THE UK APPROACH TO GROWING A SOCIAL INVESTMENT MARKET

Sarah Hickey, Social Investment & Finance TeamCabinet Office, UK

JULY 2014

The UK Government works with

partners to grow a private

market increasing

social impact

Why What How

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Social impact investment brings

together innovative enterprise

with investors who want to do

more with their capital

Opportunity Barrier Solution

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Apr 11, 2023 DRAFT VERSION4

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Apr 11, 2023 DRAFT VERSION5

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Government saw that it could help a new market to grow further,

faster

2000-2010 2010 2010-2014

Apr 11, 2023 DRAFT VERSION6

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Degree of adoption

Proof of concept

Market creation

Competitive growth

Market maturation

Research, ideation

Without intervention

With intervention

Increased demand

Faster progress

Type of intervention 2013:Building enablers e.g. Market infrastructure and information

2014: Tilting the playing field e.g. tax incentives and regulatory reform

2015:Setting ground rules direction e.g. regulate general business environment

2012:Government as principle actor e.g. Big Society Capital

x

Hypothesis: Market is here

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The social investment team works with partners to support supply,

demand, and an enabling environment

DEMANDSUPPLY ENVIRONMENT

Apr 11, 2023 DRAFT VERSION9

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Growing supply means increasing and diversifying the investor

base

Big Society Capital Design principlesResults

Apr 11, 2023 DRAFT VERSION10

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Growing demand means enabling enterprises to become investable

Investment Readiness Design principles Results

Apr 11, 2023 DRAFT VERSION12

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Creating an enabling environment means making it easier for

investors and enterprises to come together

Legislation Design principlesResults

Apr 11, 2023 DRAFT VERSION14

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Social Value ActSocial Value ActSocial Value ActSocial Value ActSocial Value Act

30% social investment tax

relief

Apr 11, 2023 DRAFT VERSION15

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Market building has led to growth.

Now we’re thinking about how to mainstream

Crowd funding Global marketDevelopment finance

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Thank you