The vision for a Big Society came much closer on 29 June as the Big Society Bank – now officially named Big Society Capital – became a reality with the establishment of two expert boards.
In addition the first investment from dormant accounts has gone to the Private Equity Foundation, an organisation whose mission it is to support disadvantaged young people into employment, education or training.
Sir Ronald Cohen, renowned pioneer of venture capital, has agreed to serve as the unpaid, interim Chair of Big Society Capital Limited, the operating company of the group, until it is fully operational and its Board has conducted a search for a more permanent Chair. Nick O’Donohoe, formerly Global Head of Research at JP Morgan, will take the helm as Big Society Capital’s first CEO. An experienced board will be working with them to lead this truly groundbreaking initiative as it transforms the world of social finance for charities and social enterprises:
· Sir Ronald Cohen, Chair (the Portland Trust and Bridges Ventures)
· Nick O’ Donohoe, CEO (formerly JP Morgan)
· Dawn Austwick (Esmee Fairbairn Foundation)
· David Carrington (Independent Consultant)
· John Kingston (Association of Charitable Foundations)
· Geoff Mulgan (National Endowment for Science Technology and the Arts)
· Dai Powell (HCT Group)
· Lady Susan Rice (Lloyds Banking Group)
· Danielle Walker Palmour (Friends Provident Foundation)
The Board of the Big Society Trust, responsible for ensuring the group stays true to its mission, has also been appointed. Members represent a wide spread of leaders in the social and financial sectors:
· Sir Richard Lambert (University of Warwick)
· Ian Davis (formerly McKinsey & Co)
· Baroness Pitkeathley (House of Lords)
· David Robinson (Community Links)
· Sir Stephen Bubb (CEO of ACEVO) [ex officio in rotation every three years with NCVO]
· Peter Holbrook (CEO of Social Enterprise Coalition) ex officio
· Gareth Davies (Cabinet Office) ex officio
· Sir Ronald Cohen (Chair of BSC) ex officio
Big Society Capital will be run independently from government with decisions around funding being made by an impartial investment committee. It will play a critical role in speeding up the growth of the social investment market. Socially orientated financial organisations will have greater access to affordable capital, using an estimated £400million in unclaimed assets left dormant in bank accounts for over 15 years and £200million from the UK’s largest high street banks. Big Society Capital and the four Merlin banks have also come to an agreement on heads of terms for the banks’ £200m investment in the company.
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