- Resonance Enterprise Investment fund allows eligible investors to claim 25% of their investment as tax relief through the Community Investment Tax Relief (CITR) scheme
- This fund builds on previous social enterprise funds, including two Social Investment Tax Relief funds
Resonance has launched a £10 million evergreen fund designed for professional investors seeking to combine social and financial returns.
The Resonance Enterprise Investment (REI) fund will invest in organisations tackling inequality, improving health and wellbeing, and supporting the transition to a low-carbon economy. Investment will be primarily in the form of debt-based products.
REI is structured via Resonance Enterprise Investment CIC, an accredited Community Development Finance Institution (CDFI), allowing eligible investors to claim 25% of their investment as tax relief through the Community Investment Tax Relief (CITR) scheme.
Originally aimed at enterprises in the South West, North West and West Midlands, the fund has already attracted investors including Unity Trust Bank, Enterprise for Development and The Ceniarth UK Foundation.
“We were delighted to participate in the launch of the REI Fund and provide catalytic capital in order to complete this blended facility,” explained Diane Isenberg, Trustee of The Ceniarth UK Foundation.
“We are focused specifically on improving livelihoods for those in disinvested areas of the country. The type of community finance employed by REI is a key lever for development in these communities.”
Keith Palmer, Founder of Enterprise for Development, added his support: “We are delighted to be part of this exciting venture.
“The fund also benefits from the Growth Guarantee Scheme, provided by British Business Bank, and a substantial Access (the foundation for social investment) grant; both designed to lower the cost of capital to recipients of investment from the fund, enhancing affordability.”
The launch of the REI Fund follows the success of Resonance’s Social Investment Tax Relief (SITR) and growth funds, which successfully made 123 investments, with £9.9million previously raised from 145 investors.
Example initiatives that could attract investment through the REI Fund include a small social enterprise brewery expanding to create employment and support for adults with learning disabilities and autism and registering a domically care team specialised in end-of-life care with the Care Quality Council (CQC).
Also, in the pipeline for the fund, is a community wood project that trains people experiencing long-term unemployment whilst also offering local people access to high quality reused wood.
Leila Sharland, Acting Head of Growing Enterprises at Resonance, said: “Social enterprises deliver real solutions to inequality, poor health and climate challenges, but they often lack the right finance.
“REI changes that by combining tax relief with risk protection. It offers investors the chance to earn solid returns while supporting communities that need investment most.”
The REI fund has a seven-year term for investors. It is open to professional investors, including family offices and corporates, with minimum commitments of £100,000.
The fund targets a 3% internal rate of return, which rises to the equivalent of around 7.1% gross with tax relief applied.
Reinald de Monchy, Chief Banking Officer at British Business Bank, went on to add: “One of our key priorities is supporting smaller businesses in underserved communities across the UK, and it’s good to see Resonance Enterprise Investment fund utilising our Growth Guarantee Scheme to help achieve that goal.
Seb Elsworth, CEO of Access, concluded: “We’re pleased to see the launch of the Resonance Enterprise Investment fund which has been part funded through our Flexible Finance programme.
“Resonance’s approach will help social enterprises access the kind of patient, flexible finance they need to grow and deliver lasting impact. By combining our grant with backing from Unity Trust Bank and the British Business Bank’s guarantee scheme, this fund will strengthen the flow of capital into communities that need it most.”
Resonance has launched a £10 million evergreen fund designed for professional investors seeking to combine social and financial returns.
The Resonance Enterprise Investment (REI) fund will invest in organisations tackling inequality, improving health and wellbeing, and supporting the transition to a low-carbon economy. Investment will be primarily in the form of debt-based products.
REI is structured via Resonance Enterprise Investment CIC, an accredited Community Development Finance Institution (CDFI), allowing eligible investors to claim 25% of their investment as tax relief through the Community Investment Tax Relief (CITR) scheme.
Originally aimed at enterprises in the South West, North West and West Midlands, the fund has already attracted investors including Unity Trust Bank, Enterprise for Development and The Ceniarth UK Foundation.
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About Resonance
Resonance is a pioneer in social impact fund management, which has been connecting capital to social enterprise since 2002. We are proud of our 23-year track record of impact investing, and B Corp certification.
We provide life changing homes and solutions for people and communities facing crisis.
Through our social impact residential property funds, we work with institutional investors and expert housing partners to provide safe, affordable homes with wrap-around support. Since our first property fund launched in 2013, to end 2024 we have helped to provide homes for over 4,000 individuals, including almost 2,000 children in over 1,350 properties in major cities across the UK.
With peoples’ homes at the heart of what we do, our Impact Labs team develops the ecosystem around our impact property funds, so we can innovate new solutions, pilot systemic change, increase supply and scale opportunity.
Within Impact Labs, our Growing Enterprises funds, including the new REI fund, focus on enabling social enterprises to grow, reach more people and deepen their impact.
About British Business Bank:
The British Business Bank is the UK government’s economic development bank.
Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
The British Business Bank’s core programmes support £23bn of finance to almost 64,000 smaller businesses.
The Growth Guarantee Scheme will provide approximately £500m of additional lending capacity to help more smaller businesses across the UK. The extra funding is aimed at smaller businesses that may need support with cashflow issues due to changes in global tariff rates.
About Access
Access – The Foundation for Social Investment helps charities and social enterprises become financially sustainable and reach more people.
We support a range of tools – from grants to investments – to help grow their trading income, strengthen their resilience, and access social investment that works for them.
About The Ceniarth UK Foundation
The Ceniarth UK Foundation is focused on improving livelihoods in disinvested areas of the United Kingdom with a particular emphasis on Wales. The Foundation provides both grants and impact investments with a focus on social services, community development, affordable housing, and small business lending.
About Enterprise for Development
EfD provide grants and non-financial support for sustainable businesses that in addition to generating high-impact also have the potential to scale and generate benefits for those on lower incomes.
About Unity Bank
Unity Trust Bank offers ethical business bank accounts and loans. It works with organisations that deliver positive social impact.