Key Fund aims to invest in 300 social enterprises with £10m fund

Key Fund, the North of England’s specialist investor in community and social enterprises, aims to invest in 100 enterprises per year, for the next three years.

The new £10m fund was announced at its launch event on October 28th.

This includes a £5.5m Northern Impact Fund, supported by Access – the Foundation for Social Investment, with funding from Big Society Capital and the Big Lottery Fund, which offers blended loan and grant investments up to £150k.

Additionally, Key Fund has also secured £4.5m of new finance direct from Big Society Capital, to support general investment activity.

Founded in 1999, Key Fund launched the new funds at its new offices in Sheffield, alongside revealing a brand re-vamp. It also shared its Social Impact Report 2015/16.

The last year saw Key Fund invest a total of £10m in 201 enterprises, which received funds ranging from £5k to £300k. The investments created 37 new businesses, 293 new jobs and safeguarded 188 jobs.

Matt Smith, CEO of Key Fund, said: “Our Social Impact Report demonstrates what a significant impact the sector has.

“There are inspiring businesses and individuals, who are not only generating jobs in some of the most disadvantaged communities, but are also tackling deep-rooted social issues.

“We’re now looking for 300 more community and social enterprises to come forward over the next three years, whether they are startups or existing enterprises looking to expand, diversify or grow.”

All of Key Fund’s investments are made to enterprises turned down by mainstream finance providers, particularly those in areas of disadvantage with a high social impact.

Matt Smith added: “We’re incredibly proud of our work, and the impact that our investees have on the lives of people in need.

“We know just how difficult it is to run an enterprise that attempts to balance commercial and financial targets, as just like our clients, we are a Social Enterprise too. Our passion for this work and commitment to our mission has never been stronger.”

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