Social Investment Scotland gets £8m investment from Big Society Capital matched by the Scottish Government

[The fund] will go a long way to helping us achieve our strategy for growth, making a real difference to more lives in communities across Scotland - Alastair Davis

A £16m social growth fund is to be created in Scotland.

Social Investment Scotland (SIS), a third sector funder, has secured £8m from Big Society Capital and another £8m in matched capital from the Scottish Government to create the new fund.

The investment is Big Society Capital’s first of its kind in Scotland since its formation last year, and will increase SIS' funds under management by a third.

It will be the largest investment in SIS for 12 years and the largest ever investment by an external organisation.

SIS was established in 2001 to provide a new finance model for Scotland’s charities and social enterprises. Since then it has invested over £43m in almost 200 organisations across Scotland, becoming Scotland’s largest community development finance institution.

Alastair Davis, chief executive of SIS, said: “The investment is recognition for the considerable social impact achieved by our work to date, and will go a long way to helping us achieve our strategy for growth, making a real difference to more lives in communities across Scotland.”

Nick O’Donohoe, chief executive of Big Society Capital, added: “Social investment delivers the money needed to make positive changes in communities.”

In September 2013 SIS launched its new five year strategy – A Framework for Growth – which set out a series of commitments for the organisation, grouped within five main themes, aimed at connecting more capital with communities.

Nick Kuenssberg, SIS chairman, said: “Alastair Davis and his team are now seeing their ambitious plans maturing, permitting SIS to add significantly to its potential for connecting communities and capital.”