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Big Society Capital, which officially rebranded to Better Society Capital in April 2024, is a London-based wholesale social impact investor that deploys capital into intermediary funds to support charities and social enterprises addressing inequalities across the United Kingdom. The organization operates as a fund of funds and was initially capitalized with £600 million, comprising £400 million sourced from dormant bank accounts and £200 million from major shareholder banks. These initial corporate banking investors included Barclays, HSBC, Lloyds Banking Group, and the Royal Bank of Scotland. Through its targeted allocations, which feature an early £2.7 million direct investment into The Foundry, the firm has helped expand the broader UK social impact investment market from £830 million to over £9.4 billion. Big Society Capital was originally founded in 2012 by co-founders Sir Ronald Cohen and Nick O’Donohoe.
Key people at Big Society Capital.
# Big Society Capital: A Social Impact Investment Pioneer
Better Society Capital (formerly Big Society Capital) is not a traditional company but rather a social impact investment firm established by the UK government in April 2012 to catalyze growth in the social investment market[2][6]. It operates as a "social investment wholesaler," investing capital into intermediaries—such as banks and fund managers—rather than directly into frontline charities and social enterprises[2].
Better Society Capital's mission is to grow the amount of money invested in tackling social issues and inequalities across the UK[2]. Rather than pursuing commercial returns, the organization seeks to make transformative impact on the social investment market by supporting intermediaries to become financially robust and effectively channel capital to the social sector[2].
The firm's investment philosophy centers on understanding people's needs first, then collaborating with fund managers and expert partners to connect capital where it's most needed[1]. Key focus areas include affordable housing, support for vulnerable older people, and mental health prevention[1]. By 2024, Better Society Capital had invested £925 million of its own capital while attracting nearly £3 billion in co-invested private capital[2].
Better Society Capital emerged from the UK government's broader "Big Society" agenda. An interim "Big Society Investment Fund" was established under the Big Lottery Fund to make early investments before the formal institution launched[2]. The organization was officially launched in April 2012 by the Prime Minister at an event hosted by the London Stock Exchange[2].
Much of the organization's initial capital came from the Reclaim Fund, created in 2012 to utilize dormant bank accounts[2]. This unique funding mechanism allowed the organization to begin operations with substantial resources dedicated to social impact rather than shareholder returns.
In April 2024, the organization rebranded from "Big Society Capital" to "Better Society Capital" to more accurately reflect its mission[2].
Better Society Capital operates at a critical inflection point in UK social finance. The social impact investment market grew from £0.8 billion in 2011 to £7.9 billion by 2021, with targets to reach £10-15 billion by 2025[7]. The organization serves as both a champion and infrastructure builder for this emerging asset class, working to normalize social investment among corporates, institutional investors, and policymakers[6].
The timing has proven crucial: as traditional government funding for social services faces constraints, social investment offers an alternative mechanism to channel capital toward vulnerable populations. Better Society Capital's role in developing the market infrastructure—including standards, best practices, and investor confidence—has been foundational to this growth[3].
Better Society Capital represents a novel institutional model: a government-backed development finance institution designed to self-liquidate by making the social investment market self-sustaining. Its success hinges on whether intermediaries and social organizations can ultimately operate without its catalytic capital.
Looking ahead, the organization's influence will likely expand as ESG considerations drive mainstream investors toward impact-aligned opportunities. The challenge will be scaling impact measurement and ensuring that growth in capital deployment translates to measurable improvements in people's lives—moving beyond the £1 billion in capital mobilized in its first six years toward the £10-15 billion market target[3][7].
Key people at Big Society Capital.
