SASC set to raise new money for its Community Investment Fund

Social and Sustainable Capital (SASC) has revealed that it is planning to raise £10m-15m for its Community Investment Fund (CIF) within the next 18 months.

The ‘social investor’ — which has invested more than £30m over the past five years — funds organisations that support communities and improve people’s lives and has provided solutions to companies in a range of sectors including education, housing, health, social care and sustainable living.

SASC currently manages three funds, including CIF, Third Sector Investment Fund and Social and Sustainable Housing. 

CIF invests in social sector organisations located in England that are community-based and locally led, offering long-term loans and quasi-equity investments between £250,000 and £2m.

The types of funding include mortgages, growth capital and working capital.

Ben Rick, co-founder and managing director at SASC (pictured above), spoke of a case study when it provided funding to Hull-based housing organisation Giroscope.

“They had access [to] commercial mortgages, and they had built up over time some equity in their book, but the banks were still offering them a product that was relatively restrictive and very standardised.

“So, when they approached us, what they needed was access to a pool of money that would enable them to quickly buy houses at auction, renovate them, and then potentially remortgage them later.

“That is a product that just wouldn't have existed from a bank.

“…We initially gave them [a] short-term line of funding that they could use to buy properties when they became available, get them ready to a mortgageable state and then take them to the bank.”

One of Giroscope's renovations

He added that the Community Investment Fund was unique with its focus on locally-led community organisations.

“There isn't really anything else like that that exists,” he claimed.

“So, keeping that fund available is critical.”

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