Fund IV provides unitranche funding of up to £5m to impactful enterprises with balance sheets to support secured debt or contract income.
Big Issue Invest Fund Management expect to have Fund IV available to invest from Spring/Summer 2023.
The Fund will offer secured Unitranche loans for asset backed growth and will target investees creating impact in the Housing, Care and Social Infrastructure sectors.
Eligible investees will be established socially impactful organisations in the UK, with a history of revenue generation, profitability and assets to support secured debt.
The Fund aims to provide large loans to proven impactful ventures, whilst not requiring investees to coordinate with complex syndicate structures that delay execution timelines and complicate capital structures.
Anticipated loan sizes are between £1m and £5m with expected terms of 3 to 5 years.
Social enterprises accessing investment are expected to deploy the funding to improve their financial sustainability and scale-up existing impact. Use of proceeds may include (but is not limited to): expansion of services, property refurbishment or acquisition, purchase of capital equipment or improving cash profitability.
The Fund intends to invest in a wide range of geographies across the UK, with particular focus on areas of poverty that have a greater need for support and investment in respect of homelessness and affordable housing, site-based care services and hospice services, or improved social infrastructure. Social infrastructure encompasses buildings and other assets in the community that are used to provide an impactful service. Examples may include specialist schools, pre-school nurseries, arts and performance venues or co-working spaces.
Please note that Fund IV does not invest in Community Development Financial Institutions (CDFIs), lending businesses, or organisations operating in business areas outside our three core focus sectors.
If you’re interested in learning more or would like to discuss potential financing with a member of the team, please fill out the form via the link below and we will get back to you promptly.
“Fund IV” is managed by Big Issue Invest Fund Management Ltd (BIIFM). BIIFM is the alternative investment fund manager (“AIFM”) of the Fund and is authorised and regulated by the Financial Conduct Authority (FRN: 610618) as a “small authorised UK AIFM” in accordance with article 3(2) of the AIFMD to manage unregulated AIFs. The fund is addressed to professional investors only.
Please note that: past performance cannot be relied on as a guide to future performance. The capital of Investors in the Fund is at risk. Any target is not a predictor, projection or guarantee of future performance.