What was their challenge?
Resolution Foundation are an independent think-tank focused on improving the living standards of those on low-to-middle incomes. They are launching their first social investment fund to back ventures using technology to change the world of work for the better.
At the early stage of fund design, they needed a fund financial model to estimate financial returns in order to inform fund design and engage with potential funders, such as Big Society Capital.
At the early stage of fund design, they needed a fund financial model to estimate financial returns in order to inform fund design and engage with potential funders, such as Big Society Capital.
What was the support you provided / offered
Flexibility – given the wide potential scope for the fund, the modelling was developed to allow for a wide range of investment types (pre-seed and seed equity, quasi-equity, loan), management fee mechanisms and funding solutions (grant investment, subordinated and senior investors of the fund).
Insights – The outputs of the model were designed to present the portfolio dynamics and financial levers, produce the required metrics and forecasts for potential funders, and therefore allow the client to quickly and informatively iterate their investment strategy and other fund parameters. These included detailed forecasts as well as dashboards to summarise and visualise key metrics and outputs.
Insights – The outputs of the model were designed to present the portfolio dynamics and financial levers, produce the required metrics and forecasts for potential funders, and therefore allow the client to quickly and informatively iterate their investment strategy and other fund parameters. These included detailed forecasts as well as dashboards to summarise and visualise key metrics and outputs.
What was the impact or outcome of support?
Resolution Foundation used the model to inform and update their investment strategy and to provide the insights and outputs required to engage with potential funders. The fund is set to launch in 2024.
We often see financial models pulled together last minute, in a rush, at the final stages of a project or proposal, sometimes revealing issues that are too late to fix. This project is a great example of the value in creating financial models early-on in a process and their usefulness as powerful decision-making tools, informing other aspects of a process.
We often see financial models pulled together last minute, in a rush, at the final stages of a project or proposal, sometimes revealing issues that are too late to fix. This project is a great example of the value in creating financial models early-on in a process and their usefulness as powerful decision-making tools, informing other aspects of a process.
TBC!