SOCIAL INVESTMENT IN EDUCATION John Loder, Gemma Rocyn Jones and Will Norman / June 2013
About The Young Foundation The Young Foundation is determined to make positive social change happen. We pioneered the field of social innovation with The Open University, UpRising and Studio Schools. We work closely with individuals, communities and partners building relationships to ensure that our thinking does something, our actions matter and the changes we make together will continue to grow. youngfoundation.org About Big Society Capital Big Society Capital is the world's first social investment bank. It was launched in April 2012, with an estimated £600 million of capital, £400 million of which will be from unclaimed assets left dormant in bank accounts for over 15 years, and £200 million from the UK’s largest high street banks. Big Society Capital’s mission is to develop the social investment market in the UK by investing in social investment finance providers and by acting as a market champion. By improving access to finance for social sector organisations, and by raising investor awareness of investment opportunities that provide a social as well as a financial return, Big Society Capital will be instrumental in connecting the sector to capital markets. bigsocietycapital.com About Impetus – The Private Equity Foundation Impetus – The Private Equity Foundation (PEF) is a charity supporting the growth, effectiveness and sustainability of charities and social enterprises through its venture philanthropy model. To achieve these aims, Impetus – PEF provides management expertise and pro bono business skills, alongside long-term funding, to organisations it believes are ready to become game-changers, with the potential to really move the needle on the most persistent social problems. impetus-pef.org.uk
Author biographies John Loder is a programme lead at The Young Foundation. He was the major author of the guide The Young Foundation wrote on measurement and return on investment in health. He also has particular focus on patient empowerment through information, structuring financial instruments and statistical modelling of social outcomes. He was previously a partner in the hedge fund Corin Capital, before leaving to pursue his interest in social finance and entrepreneurial solutions to social problems. He holds a Politics Masters degree from the London School of Economics, specialising in the interplay between market and state mechanisms for delivering social value. Gemma Rocyn Jones is a programme lead at The Young Foundation. She has been involved in programmes such as Catalyst, where she developed an education campaign to raise awareness of social investment in the youth sector and ran a series of investment readiness classes and the Accelerator where she teaches ventures about all aspects of financial modelling and management to support them in accessing social finance. Prior to joining The Young Foundation, Gemma spent eight years in investment banking, latterly working in corporate finance. She is a member of the ICAEW and holds a MSc in Population and Development from the London School of Economics and a BA in French and Maths from King’s College London. Will Norman is Director of Research at The Young Foundation with overall responsibility for the strategic direction and implementation of research projects. Will specialises in ethnographic research methodologies and social innovation. Will has a PhD in anthropology from the London School of Economics.
Acknowledgements This research was commissioned by the Private Equity Foundation (PEF) and Big Society Capital. We are very grateful to all of those who assisted us in our research. We would especially like to thank the members of our steering group who provided feedback on drafts and their expertise and opinions, as well as all the experts who took part in the interviewees and provided information for the case studies. We would like to thank the Big Lottery Fund for providing us with access to the survey data from their 20