Impact Report 2023 | Schroder BSC Social Impact Trust plc
Schroder BSC Social Impact Trust plc | Impact Report 2023
Introduction The Schroder BSC Social Impact Trust plc
(SBSI, ‘the Company’) is a quoted investment company accessible to any investor, providing capital for high quality and high impact social investment to support resilient, equitable, flourishing communities in the UK.
SBSI opens up access for public investors, by providing a listed asset structure, alongside deep knowledge and networks across social organisations and fund managers. Our intention is to grow the Company over time to serve both our impact and financial objectives. Expanding the Company’s shareholder base and increasing in scale will enable more deployment of capital to an attractive pipeline of social investment opportunities while also supporting liquidity in the shares and reducing cost ratios. We believe this is important in creating a virtuous cycle of lowering the barriers for investors and creating a demonstration effect to ‘crowd in’ more investors.
The UK faces entrenched social issues that require targeted investment at scale.
£7.7bn needed annually to meet the growing demand for care 1
£16.9bn needed annually to tackle the housing crisis 2
Every investor in the Company contributes to this, by
£65bn needed to insulate UK homes by 2035 3
Providing new capital through each fundraise
Local social organisations are often best placed to tackle these challenges in their communities, by partnering with government and investors to develop new cost-effective solutions that are tailored to disadvantaged groups. Many of these solutions are ready to scale with the right investment, but struggle to find it. Options are generally limited to mainstream retail finance that are often a poor fit, or very small private markets that are inaccessible or costly to manage for most investors. Social impact investment is highly focused on these issues, growing tenfold over the last decade to an estimated market size of £7.9bn in 2021 4 . Many investors though lack access to the private markets that finance many of the highest impact social organisations 5 .
Participating in secondary trades to enhance liquidity and open up social investment to new investors
Amplifying the signal effect of the Company to catalyse wider change in the UK’s financial system
1 Social Care: Funding and Workforce (parliament.uk) 2 https://bigsocietycapital.fra1.cdn.digitaloceanspaces.com/media/documents/BSC_Mapping_ the_Market_-_D13_-_Amends_made_2.pdf 3 REPORT (greenfinanceinstitute.co.uk) 4 Market data | Big Society Capital 5 https://www.impactinvest.org.uk/wp-content/uploads/2023/04/Estimating-and-describing- the-UK-impact-investing-market.pdf
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