1. education

EDUCATION, TRAINING AND EMPLOYMENT
ADVIZA
The best thing about
coming to Energise is
gaining more confidence
and making new friends.
Luke, Energise Programme Participant
Problem
There are more than three quarters of a million
unemployed young people in the UK today. Young
people who have been excluded from school or
have not achieved adequate GCSEs are more
likely to fail to make the transition into work,
training or further education.
Revenue Model
Energise is funded through a Social Impact
Bond. Repayment is under a “payment-byresults” contract with the Department of Work
and Pensions, out of long-term savings to the
public purse of reducing youth unemployment.
Social investors take the financial risk, providing
the up-front funding in the knowledge that their
returns will only be made if the intervention
achieves specified targets.
Invested
£902,000
Turnover
£8.2 million
Organisational form
Charity
Other supporters
Social Finance
Solution
Adviza runs the Energise programme which
supports vulnerable 14-15 year olds. Through
one-to-one mentoring, group work and
residential courses, the young people are given
tailored support to help them make the transition
from education to employment.
Impact
The Energise project improves attendance,
attitude, and behaviour at school, as well
as improving GCSE results and routes
into employment. In the first year of the
programme over 600 young people were
referred from 35 schools.
Cost of capital
Outcomes payment
Duration of investment
3 years
Investors
Esmée Fairbairn Foundation, Barrow Cadbury Trust,
Bucks County Council, Bracknell Forest Housing
Association, Berkshire Community Foundation
www.adviza.org.uk
SOCIAL INVESTMENT ADVISER
SOCIAL FINANCE
Social Finance is a not-for-profit organisation that partners with the government, the
social sector and the financial community to find better ways of tackling social problems
in the UK and beyond. Social Finance helped to arrange the Energise Social Impact Bond
(SIB) and currently acts as the performance manager.
Approach to investing
The Department for Work and Pensions’ Innovation Fund was launched in 2012 to support paymentby-results programmes that enable disadvantaged young people to participate and succeed in
education and training. Energise is one of the SIBs in this programme.
The programme works with vulnerable children, who have been identified by their schools as being
most at risk of dropping out of school and becoming unemployed. It focuses on helping improve
confidence, well-being, life skills and attainment at school, and ultimately help the young people
successfully transition from school to employment, further education or training.
Investment into this SIB provides the risk and working capital for the programme to be delivered by
the charity Adviza. If successful, investors will be repaid by the Department for Work and Pensions out
of long-term savings to the public purse.
Why the investment was made into the Energise SIB
Adviza really stood out because their delivery model put the young person at the centre and
most importantly it evolved and changed depending on their risk of not being in education or
employment.
Dan Miodonvik, Associate at Social Finance
Key deal terms
Liquidity
3 year lock up
Duration
3 years
Investment from
Big Society Capital
£319,000
£902,000
Big Society Capital
strategy element
Innovation
Size
Product type
Social Impact Bond
Accessible to
Institutional investors
Professional individual investors
Retail investors/depositors
Social issue Education, training and employment
Esmée Fairbairn Foundation,
Other
investors
Barrow Cadbury Trust, Bracknell Forest
Homes, Berkshire Community Foundation and
Buckinghamshire County Council
www.socialfinance.org.uk
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or invitation to buy or sell or enter into any agreement with respect to any security, product, service or investment. Any opinions expressed do not
constitute investment advice and independent advice should be sought where appropriate. All information is current as of November 2014, subject to
change without notice, and may become outdated over time