Impetus Trust makes fourth investment

Guy
30 June 2005

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Impetus Trust, the UK’s first general venture philanthropy fund founded by industry veterans Stephen Dawson and Nat Sloane, is backing the charity Leap Confronting Conflict. Leap which will be Impetus’s fourth investment is the leader in conflict resolution with young people and also has Patrick Dunne from 3i as a trustee.

At a time when there is national debate about anti social behaviour, concern about bullying in schools and gang tension in inner cities, Leap helps young people to understand the causes and consequences of conflict and then equips them with conflict resolution tools and skills. Leap’s innovative edge, quality of delivery and reputation in the sector means it has a significant growth opportunity.

Impetus raises funds from donors to invest in charities for social return. Essentially this means applying private equity approaches to boost the growth of charities and increase their impact. To secure investment, charities go through intensive assessment to identify those with significant potential to increase their impact. Impetus donors are mainly high net worth individuals from the venture capital industry, although leading charitable trusts have also backed Impetus.

Impetus adds significant value through leveraging in pro bono support from corporate and individual associates. For example as part of the due diligence process, Leap benefited at no cost, from a comprehensive sector and competition analysis conducted by the strategy consultancy firm, OC&C. This would have cost Leap £75,000.

Impetus will invest £275,000 in Leap over three years, £80,000 in the first year in order to build Leap’s capacity. This will give Leap the platform to accelerate their growth plans, boosting the number of young people it can reach.