Social Business Trust

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Social Business Trust (SBT) is a registered UK charity^[1] established in December 2010 by Damon Buffini ^[2] and social entrepreneur Adele Blakebrough MBE.^[3]^[4] SBT provides grants and business advice to social enterprises based in the UK. The purpose of SBT is to support the growth of selected social enterprises and help them to achieve greater social impact.

History

The six founding partners of the investment fund are Bain & Company, Clifford Chance, Credit Suisse, Ernst & Young, Permira and Thomson Reuters. The six companies have committed cash, which will be given out in the form of grants, and pro-bono support, with the aim of rapidly growing more than 20 social enterprises.^[5] CEO Adele Blakebrough, co-founder and former Chief Executive of Community Action Network,^[6] and Damon Buffini, partner and former chairman of private equity firm Permira, initially worked together in 2005, supporting social enterprises to scale up.^[7] Since inception, Social Business Trust has made six investments in UK based social enterprises:

Women Like Us
The Challenge Network
Moneyline
London Early Years Foundation
Inspiring Futures Foundation
Bikeworks

Policy and Influence

Social Business Trust is part of a wider movement of venture philanthropy and socially responsible investing. In the UK, this movement has gained momentum over the past 10 years,^[8] with numerous investment bodies growing and establishing financial products to suit a nascent market. Alongside SBT, others include Charity Bank, UnLtd, Venturesome, the Bridges Venture Social Entrepreneurs Fund, and Esmée Fairbairn.^[9]

The concept of socially responsible business has become popular rhetoric for the coalition government, in part as a response to the 2008 global recession. The political response has resulted in closer scrutiny on the city of London, the large investment banks, and their links to social responsibility.^[10] SBT co-founder and chairman Damon Buffini's actions in both business and venture philanthropy are closely followed in the press and by political think tank organisations such as Policy Exchange.^[11]^[12] SBT is highlighted as a case study in the 2011 Giving White Paper^[13] as an example of how to donate professional and specialist skills.

SBT's portfolio director, James Wise, acted as a specialist advisor for the 2011 select committee report on the progress of The Big Society. The 'Big Society' policy and ongoing political focus has had a significant impact on public discourse on social investment and social enterprise,^[14] and has led to the creation of the Big Society Capital(BSC), a government led social investment fund. SBT's CEO, Adele Blakebrough, is part of the sector advisory group for the development of and launch of the BSC.^[15]

Investment Approach

SBT does not seek a financial return on investments, but a clear increase in beneficiaries over a period of time. There are several core criteria which are required before an organisation is entered into the due diligence phase:

The organisation should be registered as a charity or demonstrate a clear charitable purpose, such as a community interest company(CIC).
The organisation must have annual revenue in excess of c.£1 million, including a significant proportion of earned income (income that is not grants or donations).
The organisation needs to have at least one year’s audited financial accounts.
A minimum of 1,000 people per year must benefit, directly or indirectly, from the organisation’s goods or services.
The organisation needs to be based predominantly in the UK.

Following a phase of due diligence, successful organisations will be invited to present to the investment committee; a group of senior partners representing the 6 sponsor organisations.

External links

References

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