Social investment needs to be made 'more appealing'

Private equity firms are more likely to get involved in social investment if it offers market or close-to market returns.

Such is the main finding of a new report by ClearlySo entitled Investor Perspectives on Social Enterprise Financing, which polled 55 private quality firms and charity institutions.

The report states that just £190 million was paid to social investment trusts last year, which undermines the fact that many firms are gaining interest in the sector.

Katy Hill, author of the report, stated at the launch event on July 13th: "They are keen that these investments are replicable, there is an exit strategy, and it is not a long term prop-up mechanism."

She was referring to whether or not philanthropic funders would be willing to guarantee social investments to get the market going.

Overall, the report found that more businesses are interested in social investment but will only get involved if they are sure to get market or close-to market returns, as well as risk mitigation being offered.

Socially responsibly investing is however a growing phenomenon, as ClearlySo estimates there are £2.7 trillion worth of social investment funds being managed in Europe.
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