Schroder BSC Social - Investment Update

Schroder BSC Social Impact Trust

15/07/2021 07:00

RNS Number : 2779F

Schroder BSC Social Impact Trust

15 July 2021

 

Schroder BSC Social Impact Trust plc

 

Investment Update

 

 

New follow-on commitment - Social and Sustainable Housing LP ("SASH")

Schroder BSC Social Impact Trust plc (the "Company") has made a new follow-on commitment of £5m into SASH, following its first £5m commitment acquired through the Company's Initial Portfolio in December 2020. This sits within the High Impact Housing allocation of the Portfolio.

 

SASH aims to improve the lives of vulnerable individuals by increasing their access to safe, stable and appropriate housing. The fund provides investment to high-performing social sector organisations with local knowledge, networks and a strong track record in management of transitional supported housing. In turn, these organisations purchase properties that can deliver housing and support services to vulnerable individuals, including survivors of domestic violence, children leaving the care system, ex-offenders, asylum seekers, people with complex mental health issues and people with addiction issues.

 

SASH aims to deliver risk adjusted commercial returns in an uncertain market. SASH's financial returns rely on property appreciation and rental incomes, predominantly from inflation-linked government-backed rental payments. 

 

A recent SASH investment example is Simon Community Scotland ("SCS") which focuses on providing housing and support for people facing homelessness. Working across Scotland, the charity supports people to resolve their homelessness and recover from extremely difficult circumstances. The investment enables SCS to expand its services into Edinburgh and buy 15 one- and two-bedroom properties that will provide permanent homes for people with complex needs and experiencing or facing homelessness.

 

New investment made within existing fund commitments

One of the investments in the Debt for Social Enterprises allocation is Bridges Evergreen, is a long-term capital vehicle that provides investors with access to a differentiated portfolio of high-impact, income-generating investments. It invests in scalable, profitable, cash-generative businesses that are contributing towards positive solutions to social and environmental issues, working in partnership with its investee organisations to help them scale over time, build their teams and embed impact, with the goal of delivering better outcomes for people and the planet.

 

Bridges Evergreen has recently invested in Skills Training UK, an independent skills training provider. Skills Training UK is a leader in its sector; it has a long track record of growth and achievement in the design and delivery of individual-focused skills programmes that align with business needs, creating sustainable employment and supporting social mobility.

Working with a number of funding partners in central and local Government and with Local Economic Partnerships, Skills Training UK offers a diversified range of apprenticeships, traineeships, adult skills and employability courses that support 16-24 year-olds and adult learners, many of whom are from disadvantaged communities, to improve their skills and achieve positive outcomes.

 

 

Update on Initial IPO proceeds

Following this activity, the Company's portfolio is now 97% committed, with 66% of the net proceeds of the Company's initial public offering invested. The managers have an attractive pipeline of opportunities and expect to be fully committed this month, ahead of the anticipated 12-month timeframe.

 

Jeremy Rogers, CIO of Big Society Capital, Portfolio Manager, Schroder BSC Social Impact Trust plc, said:

"We are pleased that this follow-on commitment will enable SASH to provide more investment capital to charities that have deep local knowledge and experience in delivering housing and support services to vulnerable people, while aiming to generate resilient, inflation-linked returns for investors.

 

"Bridges Evergreen's investment into Skills Training UK will help support its increased provision and delivery of individual-focused apprenticeships and skills programmes that align with business needs, creating sustainable employment and supporting social mobility. There is a growing demand for high-quality training and re-skilling programmes, particularly post-Brexit and the Covid-19 pandemic, and Skills Training UK is well-placed to contribute towards solving this challenge, helping people to up-skill and access quality jobs."

 

For further information, please contact:

 

Schroders
John Spedding
Estelle Bibby (Press)
0207 658 3206
0207 658 3431
Big Society Capital
Georgette Harrison/Emma Hickinbotham,
Senior Communications Directors (job share)
James Westhead, Head of Engagement
georgette-emma@bigsocietycapital.com
jwesthead@bigsocietycapital.com
Winterflood Securities Limited
020 3100 0000
Neil Langford
Chris Mills


 

About Schroder BSC Social Impact Trust plc

The Company was launched in December 2020, with the objective to enable access to high social impact investment opportunities in private markets - tackling social challenges across the UK. The Company aims to build a diversified portfolio across asset classes, targeting sustainable returns, demonstrable social impact, and low correlation to traditional public markets.

Further information about the Company can be found on its website at www.schroders.com/SBSI

About Big Society Capital

Big Society Capital exists to improve the lives of people in the UK through social impact investing. We unite ideas, expertise and capital to create investment solutions for the UK's social challenges, supporting organisations that deliver both positive social impact and sustainable financial returns. So far, we have helped channel £2.2 billion* into investments tackling a wide range of problems such as homelessness, mental ill health and childhood obesity.

To widen access to social impact investing, we have partnered with Schroders, a global asset and wealth manager, to launch the listed Schroder BSC Social Impact Trust plc.  As the portfolio manager, we provide investors with high impact investments that contribute to solutions to social challenges alongside targeting long-term capital growth and income.

 

Further information about Big Society Capital can be found at www.bigsocietycapital.com

*As at 31 December 2020

About Schroders plc

As a global investment manager, we actively and responsibly manage investments for a wide range of institutions and individuals, to help them meet their financial goals and prepare for the future. The world is forever changing, and with our clients at the centre of everything we do, we understand the need to continue to adapt and evolve our business in line with what matters most to our clients today, and in the future.

Our ongoing success is built on a history of experience and expertise, whereby we partner with our clients to construct innovative products and solutions across our five business areas consisting of Private Assets & Alternatives, Solutions, Mutual Funds, Institutional and Wealth Management and invest in a wide range of assets and geographies. By combining our commitment to active management and focus on sustainability, our strategic capabilities are designed to deliver positive outcomes for our clients.

We are responsible for £574.4 billion (€641.7 billion/$785.1 billion)* assets of our clients, managed locally by 42 investment teams worldwide. As a global business with over 5,500 talented staff across 35 locations, we are able to stay close to our clients and understand their needs. We have over 200 years of experience in investment and innovation and remain committed to creating a better future by investing responsibly for our clients.

Further information about Schroders can be found at www.schroders.com.

*As at 31 December 2020

 

 

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