HCT Group, a London UK-based social provider of public transport and related training services, has raised £3m through a new financial instrument called “Social Loan“, which allows returns to investors to increase (or decrease) in line with the organisation’s turnover.
The deal is part of a £5m fundraising, aimed at meeting HCT’s capital requirements for the next three to five years.
The total fundraising is expected to comprise £2m in Social Loan and £3m in a traditional fixed rate loan.
The financing was led by Bridges Ventures, with support from the Futurebuilders Fund, which the Social Investment Business manages on behalf of the Office of the Third Sector (OTS).
Bridges Ventures has invested £1m in the Social Loan and has committed to invest a further £0.5m.
The Futurebuilders Fund has invested £1m in the fixed rate loan and £0.5m in the Social Loan.
In addition, Rathbone Greenbank Investments, the Bristol based fund manager, is expected to invest in the second round.