The European Investment Fund (EIF) has invested in Bridges Ventures Fund III, a UK-focussed sustainable growth investor, which held its first closing at GBP72m. This is EIF’s first commitment into the impact investing segment and illustrates its willingness to support European social entrepreneurship.
Bridges Ventures will target ambitious businesses across four key impact themes: Underserved Areas (meaning economically deprived areas); Environment; Education & Skills and Health & Wellbeing, where underlying social or environmental problems create an imperative for change and attractive growth opportunities for entrepreneurial businesses.
Through the success of its two predecessor funds (Bridges I and II, with similar investment strategies), Bridges Ventures has demonstrated that achieving high social or environmental impact and generating strong financial returns can be achieved in parallel.
With this milestone transaction, EIF backs an experienced and key investor, who will stimulate entrepreneurial growth and enhance employment by investing in a portfolio of 15 to 20 promising businesses addressing social or environmental issues.
Richard Pelly (pictured), EIF’s Chief Executive, says: “The Bridges Ventures team has successfully supported enterprises in the social and environmental sector in the UK over many years and has helped them grow and develop. As the single largest investor in the first close of Bridges Ventures III, EIF will pursue a key European Union objective to develop social entrepreneurship”.
Philip Newborough Managing Partner at Bridges Ventures, says: “We are delighted that EIF has joined our first close as a substantial new investor; particularly given EIF’s interest in impact investment. To have achieved a successful first close in a difficult fund-raising environment sends a strong signal that, increasingly, investors understand that generating positive environmental and social impact can drive attractive financial returns as well as making a difference.”
This important backing by EIF of a pioneer in the impact investment space marks EIF’s intentions to become an important player in this emerging asset class. Going forward, EIF is considering setting up a new fund-of-funds initiative dedicated to social entrepreneurship and innovation, the ESIEF (the European Social Innovation and Entrepreneurship Fund). The ESIEF will have cornerstone backing from the European Investment Bank and is now raising funds from private investors.
With its investment EIF aims to catalyse and attract private investors’ interest into this emerging and innovative asset class.
