GOOD DEALS 09: We should play to win £30bn for social investment in UK

 

Blood: If we build a vibrant market, we can move proportion of $17trn into social investment markets

David Blood, one of the UK's most respected fund managers, says social entrepreneurs and social investors should aim to create an investment market worth £30bn in the UK.

Speaking this morning at Good Deals 09, the UK social investment conference, Blood, who is Al Gore's business partner at Generation Investment Management, said that in the six years since starting his fund management business he had seen the development of an ethical investment market worth (US) $17trn - 25 per cent of the global investment market - with a focus on screening the social, environmental and governance aspects of companies.

He said a portion of that market - £30bn in the UK - could be converted to investment particularly targeted at social enterprises and the social finance sector.

Social investment firm Social Finance estimated the social investment market was currently worth £9bn in the UK, said Blood, which compared with £4bn available in grant capital.

He said: 'There are many steps to take before we can access that £9bn, but the truth is I'm not interested in £9bn, even though I know it's a lot of money. I'm interested in the £30bn or more that we can unlock through the development of the social investment market.

'Because I do believe that if we build a vibrant market we will be able to move mainstream capital - some of that $17trn - into social investment markets.

'This is what we have to play for.'

Blood said that there were a number of challenges to overcome before reaching this ambition. These included the need for social entrepreneurs to take a more transparent approach to their reporting, investors to understand a spectrum of returns mixing both financial and social returns, and the development of new social return on investment mechanisms that would allow investors to easily compare different investment opportunities.

The managing director of business and commercial banking at RBS Paul Lynam emphasised the need for social entrepreneurs seeking investment to develop professional, businesslike practices and be able to demonstrate their impact.

http://www.socialenterpriselive.com/section/news/good-deals-09-we-should-play-win-%C2%A330bn-social-investment-uk?utm_source=LIVEWIRE&utm_medium=EMAIL&utm_content=STORY1&utm_campaign=SELIVE_LIVEWIRE_OCT30_2009

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