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Social Investment comes of age with the deal of the century: HCT Group £10m capital raise

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Social Investment comes of age with the deal of the century: HCT Group £10m capital raise

HCT, the social enterprise bus operator, has raised £10 million investment from institutional investors and lenders, making this the largest growth capital investment in the UK impact investing sector.

This deal saw collaboration between a range of social and mainstream investors including Big Issue Invest, Triodos, FSE Group, Social and Sustainable Capital, City of London Corporation, Esmée Fairbairn Foundation, The Phone Co-op and HSBC, and facilitated by impact investment bank ClearlySo.

HCT is a social enterprise bus operator that uses its profits from its commercial work to provide community transport services, training, and community projects. Since its incorporation in 1982, HCT has grown to be a large scale social enterprise providing over 20 million passenger trips a year, with 1000 employees, ten depots spread across London, Yorkshire, the Southwest and the Channel Islands, a fleet of over 500 vehicles and a 2014/15 turnover of £45.4m.

HCT intends to use this capital to fund growth, to purchase new vehicles and depots, to improve their infrastructure and deliver greater impact for the communities that it serves and operates in. In addition, HCT will also be exploring private sector acquisitions and will continue to develop innovative partnerships with local authorities.

The £10m funding package contains a range of financial instruments, including asset backed facilities, cash flow loans and a quasi-equity component, giving this deal a level of sophistication unseen before in this sector. 

Click to read the full press release from ClearlySo, and check out their blog post.

Category: Sector news