Agenda item

The Board received a presentation from Caroline Mason, Chief Executive of the Esmée Fairbairn Foundation, after which Members of the Board had the opportunity to ask questions.

Ms Mason gave an overview of the history of the Esmée Fairbairn Foundation, which had been active in the changing and developing social investment market for a number of years. In addition to grants across five main sectors – Arts, Children and Young People, Environment, Social Change and Sustainable Food - the Foundation could commit up to £35m in social investments to a diverse range of organisations including charities, social enterprises, community benefit societies and other social investment funds.

Ms Mason advised that social investments made by the Foundation were primary based on the level of impact, before consideration of the level of financial return. Members noted that the Foundation worked with the investee to assess its business model and the type of finance needed to support its work in order to structure an appropriate investment. There were no set interest rates, maximum shares, or repayment terms. With regard to risk, Ms Mason confirmed that some of the past investments of the Foundation had failed, and advised that projects with a clear impact and a purpose in-line with that of the organisation were less risky. Members noted that, generally speaking, the more complex a project was the higher the level of risk.

In response to a Member’s question regarding monitoring and oversight, Ms Mason advised that the Foundation  was  light touch once invested with an organisation, preferring to focus on due diligence before investing. The Board discussed the value of Investment Funds, and Ms Mason advised that these were not necessarily conducive for long term change or impact, and that there was a greater role for venture philanthropy. In response to another question, Ms Mason confirmed that the Foundation’s investment policy was somewhat opportunistic, but they were becoming more proactive in trying to improve the mechanisms of the social investment market with regard to measurement, advice and support.

The Chairman thanked Ms Mason for her presentation.