Big Society Capital rebrands to Better Society Capital

Its conception in the early 2000s built on a desire in government to increase the capacity for investment to gain social as well as financial returns, alongside a growing interest in the potential to use the capital contained within so-called ‘dormant’ bank accounts. 

Labour’s last Budget, in 2010, committed dormant account money to what it called a ‘Social Investment Wholesale Bank’. When what became Big Society Capital launched in 2012 under a new government, its name chimed with the Big Society initiative launched by then-prime minister David Cameron in 2010. 

Today, the bank helps to direct money from pension funds, trusts and foundations, family offices and other institutional investors into organisations tackling social challenges such as homelessness and healthcare.

Since then, it has helped the market grow from around £800m to more than £9bn through its own investments, bringing co-investors into the space and working to build the market through awareness-raising and education.

Better Society Capital has invested £925m of its own capital since launching in 2012 and has used that to unlock almost £3bn from other investors, all channelled to organisations tackling social issues.

Stephen Muers, the firm’s chief executive, said: “Better Society Capital has now been working to bring investors alongside us to tackle social problems for over 12 years, and we have seen remarkable success from the organisations that we have been able to support.

“This evolution to Better Society Capital provides opportunity to reaffirm our mission and open up new opportunities to help maximise value for government, private investors, and the social purpose organisations who need it.”

Robin Hindle Fisher, chair of Better Society Capital, said: “Better Society Capital achieved an enormous amount in its first 12 years and I am excited about the contribution it can make to the market’s growth in the future.

“For us to do this it is important that we define our role in the sector clearly and ensure that our outward messaging is as true to our mission as possible.

“I am confident that this change of name will unlock opportunities for BSC, and in turn for the organisations we fund and the investors we partner with, while making the UK a better place to live.”

In 2023, Better Society Capital partnered with the Department for Levelling Up, Housing and Communities, with each party investing £10m to deliver 215 housing units for individuals and families who are homeless or in temporary accommodation.

In 2017, the social impact investor helped to create Good Finance, an organisation that helps social purpose organisations navigate social investment, enabling retail investors to access impact opportunities for the first time via the Schroder BSC Social Impact Trust.

Within housing specifically, notable investments have included becoming a founding investor in the Simply Affordable Homes Limited Partnership fund in its first close earlier this year. The fund is managed by Savills Investment Management and was initially launched in 2020 with backing from commercial advisory firm Centrus.

In recent years, Better Society Capital has also helped to facilitate the largest ever transfer of UK renewable energy assets to community ownership and launch a report on the fiscal and social benefits of government working with social investors.

Last year, the social impact investor urged the government to allocate more of its existing spend to homelessness property funds after a new analysis across five such funds identified £140m of savings to the public purse.