St Mungo’s and Changing Lives, charities that provide specialist support services for homeless and vulnerable people across the UK, are the first organizations to receive investment from Big Issue Invest’s Outcomes Investment Fund.
Outcomes-based contracts are a type of public sector commissioning where a central or local government department commissions a provider to deliver support to individuals, with payments contingent on the achievement of improved outcomes for those people. This creates a requirement for up-front investment, which can be met from the provider’s internal resources or by a third party investor such as BII. If the outcomes are achieved, the investor is repaid with a return that reflects the risk taken, but if the contract is unsuccessful the investor bears some or all of the financial risk ultimately claimed.
“We are delighted to be working with BII as an investment partner, not just in respect of the loan but because we believe that we can learn from each other and ultimately inject new ideas as well as investment into the way that we support vulnerable rough sleepers in Newcastle and Gateshead.”
St Mungo’s is a leading UK charity and housing association working directly with people who are sleeping rough, in hostels, and at risk of homelessness across London and the south of England. A loan of £125,000 from Big Issue Invest will provide St Mungo’s with the upfront funding needed to work intensively with 175 people sleeping rough in London.
Source : The Big Issue