Outcomes Investment Fund
The Big Issue Invest Outcomes Investment Fund (OIF) launched in May 2017 and builds on our experience of making outcomes-based investments, a growing segment of the social impact investment market. OIF makes investments into charities and social enterprises delivering payment by results contracts, where some or all the income is dependent on achieving social outcomes set by the public sector commissioner. The return on OIF investments will be linked to the success of the underlying contract in achieving these outcomes.
Outcomes-based contracts are a type of public sector commissioning where a central or local government department commissions a provider to deliver support to individuals, with payments contingent on the achievement of improved outcomes for those people. This creates a requirement for up-front investment, which can be met from the provider’s internal resources or by a third party investor such as BII. If the outcomes are achieved, the investor is repaid with a return that reflects the risk taken, but if the contract is unsuccessful the investor bears some or all of the financial risk ultimately claimed.
BII has made several outcomes-based investments since 2012, supporting people with complex, multiple needs to achieve outcomes including sustainable accommodation, employment education and training, improved mental and physical health and well-being. Our new Outcomes Investment Fund (OIF) aims to support many more charities and social enterprises in the UK to successfully deliver outcomes-based contracts and scale their impact. The OIF makes investments of £250,000 to £2 million, with flexible payment terms linked to the profile of the underlying contracts and a return linked to the achievement of the target social outcomes.
For more information about the Big Issue Invest Outcomes Investment Fund, write to OIF@bigissueinvest.com, or apply on our website.