Funding news

Big Society Bank launches as Big Society Capital - 1 August 2011

The Big Society Bank has been renamed Big Society Capital and has unveiled its first chair and chief executive.

Big Society Capital will be the new name for the Big Society Bank. Sir Ronald Cohen, founder of private equity firm Apax, will be its interim chair, while Nick O’Donohoe, former global head of research at JP Morgan, will be its chief executive.

Both Sir Ronald and O’Donohoe drew up the proposal for the organisation, which was approved by government earlier this year.

Big Society Capital will be independent of government. It will be divided into Big Society Capital Ltd, a company limited by shares that will look after the money, and the Big Society Trust, a company limited by guarantee, which will provide oversight of Big Society Capital Ltd but will not have any day-to-day functions.

It announced its first investment yesterday of £1m in a social investment fund run by the Private Equity Foundation to help disadvantaged young people into employment, education and training.

The investment will be split with £500,000 as equity in the fund, which will have a payment-by-results model, and the other £500,000 to underwrite efforts to attract investors into the fund.

For more details go to the Cabinet Office website.