For Professional Investors only

Oliver Pollard, Head of Resonance’s Growing Enterprises team, introduces the new Resonance Enterprise Investment Fund. The fund aims to provide growth capital to high impact social enterprises across the UK.

We are excited to announce the forthcoming launch of a new Resonance investment fund, which will invest in high impact social enterprises enabling them to access the growth investment they need, whilst offering the opportunity for Professional Investors to invest for positive social impact and utilise Community Investment Tax Relief (CITR). 

The Resonance Enterprise Investment fund is targeting a launch date of quarter two 2023 and follows on from the recent success of our SITR (Social Investment Tax Relief) and Health & Wellbeing Challenge Funds which in combination invested over £10m into over 70 social enterprises.

The fund will initially focus in three UK regions - South West, West Midlands and North West, where Resonance has a strong track record of investing; with on the ground investment teams and well-established social enterprise networks, before rolling out across the rest of the UK.  

The fund will focus on investing into high impact Social Enterprises that are working within their communities to 

- Tackle socio-economic Inequality

- Improve health & wellbeing

- Support a just transition to a low-carbon economy

The Resonance Enterprise Investment fund will aim to provide a range of investment products to support the growth of social enterprises, which can be tailored to each enterprise’s specific needs. The fund will embed an Equality, Diversity and Inclusion (EDI) lens across its entire model from pipeline development and investment assessments to internal process and team – supported and challenged by external EDI partners. 

This approach has been developed and tested in order to meet the varied needs, growth and impact profiles of social enterprises. The products have been designed to allow investment into a wide range of legal structures from charities (with trading income) and Community Interest Companies to Companies Limited by Shares (with strong mission and dividend locks in place). The product suite will include: 

Launchpad Loans – smaller, starter loans for enterprises starting their growth journey 

Unsecured Loans – larger loans of up to 8 years for enterprises with clear growth potential 

Revenue Share Loans (Quasi-Equity) – equity-like, patient investment for high growth enterprises, a share of revenue is paid rather than a fixed interest rate (sharing risk & reward) 

Equity – patient investment for high growth enterprises with viable exits and suitable legal structures. 

The fund will initially be open for investment from socially responsible corporate organisations that are looking to invest for positive social impact whilst utilising the Community Investment Tax Relief (CITR). The fund has also been designed to accommodate individual professional investors at a later date.  Benefits to investors include

• Target IRR of 5% (6.7% Gross Equivalent)
• Place based Investment focus with wider national exposure
• Positive Social and Environmental Impact
• Catalytic Grant within the fund structure (from Access Foundation for Social Investment)
• Resonance twenty-year track record of Impact Investing

If you are socially responsible corporate organisation looking to invest, or a growing social enterprise based in the South West, West Midlands or North West, seeking investment and would like to find out more about the Resonance Enterprise Investment Fund, please contact [email protected]

Capital at Risk Professional Investors only