Bridges Ventures

How is it social?

All funds raised by Bridges Ventures have specific strategies to achieve a positive social impact, with the greater aim of alleviating poverty in the UK. It chooses businesses it believes will bring about wider social benefit as they grow and prosper. Its criteria for investment include location in an under-invested area where regeneration through investment will create role models for the local community, or sustainable businesses linked to healthcare, education and the environment.

The company reports to investors on the social impact as well as the commercial and financial progress of investments.

What is its business model?

Bridges Ventures is a private sector venture capital company with a social mission. Commercial expertise is used to achieve social or environmental aims as well as the best possible returns for investors.

All investments are carefully screened to deliver regeneration in the most deprived 25% of the UK (as defined by the government’s index of multiple deprivation) and/or significant social benefits in sectors including healthcare, education and the environment.

Bridges Ventures CDV Fund I is a ten year fund. Successful investments have included a label-printing business in inner-city Hull; Simply Switch, the cost-comparison website; and a truck and trailer parts distributor in Yorkshire. To date this fund has invested in 24 businesses, employing 700 people, of whom almost 30% were previously unemployed. CDV Fund II also has a core focus – investing in sustainable businesses in deprived parts of the UK. Its investment range is up to £10m either alone, co-invested or syndicated. Bridges Ventures makes equity investments in businesses that are believed to have the potential significantly to increase their value in three to five years.

Its history

In October 2000, the Social Investment Task Force reported to the Chancellor of the Exchequer, and the idea for ‘community development In October 2000, the Social Investment Task Force reported to the Chancellor of the Exchequer, and the idea for ‘community development venture funds’ was born. In May 2002, Apax Partners, 3i and Tom Singh founded Bridges Ventures. They went on to raise their first ‘community development venture fund’ , Bridges CDV Fund I, later that year, with £20m from the private sector and £20m matching investment from the Government. 2007 saw the company raising its second fund of £75m, Bridges CDV Fund II, solely from the private sector banks, pension funds, trusts, corporates and individuals.

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