Schroder BSC Social Impact Trust announced today that it has raised £75 million in an initial public offering. The company was launched by global asset manager Schroders and leading social impact investor Big Society Capital, with a goal to invest in social impact investments that seek to address a range of issues including tackling the significant increase in homelessness, providing support for people with learning disabilities, providing housing for survivors of domestic abuse as well as enabling improved access to quality care services for physical and mental health conditions.
Susannah Nicklin, Chair of Schroder BSC Social Impact Trust, said:
“We are delighted by the launch of this unique social impact trust, which will provide investors with a diverse mix of social impact investments at a time when social issues are understandably at the forefront of the minds of many investors. The Company is able to provide vital capital to charities and social enterprises tackling many social challenges, from homelessness to domestic abuse. I look forward to working with Schroders, Big Society Capital and shareholders as the Company seeks to deliver a measurable social impact and a financial return for investors.”
Schroder BSC Social Impact’s investment objective is to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments. Big Society Capital is responsible for day-to-day investment origination, investment selection and portfolio management, and Schroders provides representation on the company’s Investment Committee and is responsible for oversight of risk management. The proceeds from the IPO will go, in part, to acquire a seed portfolio of seven social impact investments from Big Society Capital including interests in five Impact Funds and two Co-Investment debt portfolios.
Andy Howard, Global Head of Sustainable Investment at Schroders, said:
“We are delighted that the Company is now established and that we are able to put capital to work into projects that make a meaningful difference to society at a local level. This is a unique product which gives investors access to a diversified portfolio of private market impact investments through a London listed vehicle for the first time. In addition to its clear focus on social impact, the Company seeks to provide an attractive and consistent return profile derived from investments with low correlation to equity market movements and that are frequently asset or government backed. We look forward to updating shareholders as we begin to deploy proceeds over the coming weeks.”
Jeremy Rogers, Chief Investment Officer at Big Society Capital, said:
“We would like to thank all involved in the launch of the Schroder BSC Social Impact Trust at this extraordinary time. We have been encouraged by the growing interest of pioneer investors to directly address social challenges through their investments. We look forward to working with our shareholders to deliver good risk-adjusted returns alongside substantial social impact across the UK.”