Social enterprises often struggle to secure appropriate funding despite having quality business models, competent management teams and an unmet demand for their services.
The SEPI fund has been set up to assist such organizations looking to develop or expand services through acquisition of a property or by releasing equity held in existing property. The three key areas of social impact that the Fund aims to support are:
- social inclusion
- education
- sustainable community development
Why invest?
For the last 8 years Resonance has been providing services to social enterprises, including investment readiness consultancy, assistance in raising risk capital from values led angel investors, and project and property management. In the last 2 years it has seen an explosion in the number of social enterprises that have passed the proof of concept stage, are ready to grow , and offer a sound investment proposition.
The Social Enterprise Property Investment Fund provides values-led investors with an excellent opportunity to engage in asset-backed investment activity that has direct social and environmental benefits as well as offering good returns.
Deals will be spread across four categories: expansion capital, bridging capital, community match funding and development funding. Investment will be relatively low risk due to modest gearing, clearly defined lease terms, low tenant volatility and professional property management.
More information about investing in the SEPI fund can be obtained by calling 0845 0043 432 or emailing
info@resonance.ltd.uk
Applying to the SEPI Fund
If your organization works in the field of homelessness, education or sustainable community development and you need to purchase land or property to grow, or wish to release existing equity for your operations, then your organization may be eligible to apply to the SEPI Fund.
We can purchase a property through the Fund and then lease it back to you on mutually agreed, flexible terms that provide security of tenure and hence support the long-term financial sustainability of your organization. The property may already be fit for purpose or be land or buildings to be developed.
Our in-house specialists are able to provide advice on planning, general design and development issues and sustainable energy options, as well as offer project management services.
To qualify for the Fund, the social enterprise will need to demonstrate that:
- it has clear and competent leadership and a proven capability to deliver its objectives
- it is operating in a growing market and responding to an inadequately met need
- it has strong, stable revenues and potential for early profitabillity once scale has been achieved
- it will be able to measure and report against key social impacts that they intend to achieve through the investment.
- it will allow for the fund to exit in 3-5 years whether through the organization itself purchasing or refinancing the property or accepting sale of the property to a third party
