Public investment
Financing public investment is complicated by the common difficulty in quantifying the effects of an investment, or capturing returns that are multi-dimensional and diffuse. This particularly applies to preventative investment. Private funding can be used where there are clear streams of revenue resulting from the investment, with the public funding element covering the wider social impact elements of an investment, and reducing risk.
Social investment funds
Social investment funds, such as the proposed Social Investment Bank to be funded from unclaimed bank accounts, which would act as a wholesaler for a range...
Read moreSocial enterprise investment funds
Social enterprise investment funds, such as the Social Enterprise Investment Fund launched by the UK Department of Health with around £100m, using a mix of loan...
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Hybrid financing and joint ventures
Hybrid financing and joint ventures such as the finance models used by Woking Borough Council and the London Climate Change Agency (LCCA) to develop sustainable energy...
Read moreGenerating revenue from public investment
Generating revenue from public investment on the US railroad model, for example. Prior to investment, property rights are vested in a Community Land Trust or public...
Read moreLayered investments
Layered investments combining tranches with different rates of risk/return and different sources of capital (philanthropic, public, private) such as Blue Orchard (Switzerland) or Big Invest in...
Read moreInvestment guarantees
Investment guarantees with any claim on the guarantee being paid out with a one year delay. This is to avoid the full value of the guarantee...
Read morePublic investment aimed at social innovation growth strategies
Public investment aimed at social innovation growth strategies such as the proposed Social Investment Bank, the Toronto Atmospheric Fund and Enterprise Boards....
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Bonus payments on spending
Bonus payments on spending aligned to social outcomes such as the UK Government’s Performance Reward Grant for local area partnerships....
Read moreSocial Impact Bonds
Social Impact Bonds are a financial tool being developed in the UK (by the Young Foundation) to provide a new way to invest money in social...
Read moreHealth Impact Contracts
Health Impact Contracts are a potential new financing device to connect the National Health Service in the UK with other agencies (primarily local government), with investments...
Read moreLocal bonds
Local bonds, including Tax Increment Financing (TIF) and Business Improvement Districts (BIDs). These create flows of resources at the local and very local levels, and can...
Read morePublic finance initiatives
Public Finance Initiatives, also referred to as ‘public-private partnerships’, have been mainly used to finance physical structures and infrastructures, from roads and school buildings to prisons....
Read moreUse of insurance
Use of insurance to quantify risk and reduce uncertainty for public bodies and investors. This is a particular issue with many environmental problems such as nuclear...
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