Two innovative organisations break new ground with pioneering £200k
Big Issue Invest (BII), part of The Big Issue group of companies, has announced a pioneering £200,000 investment in shares of the award winning My Time CIC a Community Interest Company.
Historically, investing equity into Community Interest Companies (CICs) or social enterprises has been extremely difficult. However, BII and Birmingham based My Time have worked in partnership to develop the first redeemable preference share investment into a CIC or social enterprise, investing 200,000, £1 social shares in return for a 35% stakeholding.
Ed Siegel, director of investments, BII, said: “The redeemable preference share structure gives My Time the investment foundation it was seeking while providing BII with an eventual exit without needing to rely on an uncertain future sale of the shares to a third party.
“Our active investment approach also makes this more of a partnership than a simple financial investment. We intend to support My Time however we can to meet its social and financial objectives over the long term.”
At a time of public sector cuts, this investment will sustain 26 existing jobs and create a further 10 – with additional jobs created across the UK in My Time social franchises.
Michael Lilley, the single parent dad who created the My Time concept in September 10 years ago, said: “My Time approached BII for financial support as we felt both organisations’ approaches and principles were aligned. For example, My Time has been extremely successful in engaging with individuals who are typically excluded from mainstream mental health provision such as men, black or ethnic minorities, and those for whom English is not their first language. We have also developed a therapy model which is service user led, allowing individuals to have a say in the service they receive, as well as being involved in the counselling of others.
“With the support of BII investment, My Time is looking to replicate its counselling model by launching up to 10 franchises and, thereby, dramatically increasing the numbers of individuals who will be able to receive effective therapy.”
My Time is also the first UK Community Interest Company to develop a model in which three different groups of shareholders can come together, including service users, local social organisations and social investment shareholders such as BII.