BSiL Childcare Blended Finance Vehicle

Tender description

In partnership with Access – The Foundation for Social Investment, the Impact Investing Institute, and the Impact Economy Collective, the DfE is holding Preliminary Market Engagement events. The aim is to refine our requirements and gain a deeper understanding of the capacity and capability of potential partners to operate as Fund Managers for the DfE’s Blended Finance Facility, enabling the expansion of Early Years provision for disadvantaged children aged 0-5. We would also like to speak with potential Fund Managers and Investors who have specific expertise in creating and/or investing in a Blended Finance Facility, to inform our understanding of how this vehicle could work. In recent years, we have seen a decline in the number of not-for-profit providers, especially in the most deprived areas. In order to increase places in deprived areas and as part of this government’s commitment to public sector reform, we want to work with these providers – including charities and social enterprises – and alongside philanthropy and social investors to explore new ways for them to access the funding they need to expand, and to encourage new entrants into the market, for example through social investment funds. A Blended Finance Facility is to help address key challenges in the sector through three mechanisms: risk mitigation, effective deployment of capital, and a demonstration effect to deliver Policy aims.  Building on this vision, the idea is for the Fund Manager to develop a Blended Finance Facility that creates a funding mechanism providing sustained support to for-purpose providers. This will enable them to deliver our transformation goal by multiplying the impact of public spending, drawing in additional resources, managing risk, and strengthening local delivery infrastructure for the long term. Through this engagement, we aim to refine our approach and collaborate with the market to design a high-impact solution that delivers meaning and lasting change.