The need for collaboration was one of the central messages during an inspiring morning of discussion, ideas-sharing and real world examples of place-based impact investing in action at the recent PBII Network meeting.

Over 35 senior figures from local and combined authorities, investors and local government pension funds came together for our latest Place Based impact Investing (PBII) Network focused on the theme: “Local investing for Inclusive Growth”. The PBII Network creates a trusted environment where local authorities and specialist investment managers can meet for knowledge sharing, mutual learning and the development of innovative financing solutions to scale-up institutional investment as a force for good.

Themes Emerging From PBII Network

Some of the themes of the day included:

• Inclusive growth is bottom up – and needs to involve people and communities
  – it’s where everyone is counted, bringing people together around a purpose in place
• Places need heartbeats and we need to put the heart back into places
• We need to connect up the new spatial and growth plans with integrated place-based impact investment pipelines – and to make that pipeline investable
• We need to see the revenue funding and seed capital – public funding – to build local capacity and get projects and partnerships moving
• Local development companies like Treveth can play an important role in developing projects and building place-based private sector partnerships
• LGPS and local government need to connect and build a strong relationship – the relationship between Greater Manchester Combined Authority (GMCA) and Greater Manchester Pension Fund (GMPF) is an exemplar
• Traditional commercial investment products don’t work for social outcomes – need to combine public and private investment to achieve inclusion and targeted social outcomes
• LGPS local investment strategies should be treated as a separately managed allocation – with a multi-asset portfolio of place-based investments
• Recognition that smaller ticket sizes into funds and projects are needed for PBII to work
• What we need ultimately requires change in hearts and minds – caring about the future of Britain and having a positive vision
• In today’s volatile geopolitical environment we need to look inwards and drive the change we want to see ourselves – make our own places and economy resilient
• We need people who give a f#ck to step up.
• You can’t measure social value if you don’t have true democracy
• Collaboration is everything

Speakers and Presentations

Chaired by our very own Sam Monger, who also gave attendees a sneak preview of our upcoming Midlands Engine white paper, we also heard from TGE co-founder and PBII architect Mark Hepworth on the ‘dream’ of PBII, why top-down policy doesn’t work and the need to ‘make everything local’.

A huge thanks to speakers including the Jonathan Werran and Joe Fyans from Localis, for their informative overview of the political and policy landscape in which local government and investors finds themselves.

PBII Case Studies

The inimitable Darren Rodwell, formerly of Barking and Dagenham Council and now founder and director of the Inclusive Growth Consultancy, who put the focus firmly on people, purpose and place. His case study showcased how local leadership and vision combined with effective public-private sector partnership has led to a transformation of Barking and Dagenham.

To our speakers who showed us what can and is being done on the ground – bringing us case studies of place-based investing and partnership in action, from Laura Blakey from GMCA and Alex Jones from GMPF, Adele Gritten from Local Partnerships and Lisa Gledhill and Syreeta Bayne from Muse showcasing the work of English Cities Fund in partnership with Homes England and Legal and General.

Panel Discussion: LGPS Perspective on the Future of Local Investment

Sarah Forster, our CEO, chaired an expert panel on the future of local investing in the context of the Government’s pension reform agenda comprising LGPS pros –Jeremy Hughes, Senior Pensions Secretary, Local Government Association, Mike Weston, independent pension trustee and former CEO of Central, Shiventa Sivanesan, from West Midlands Pension Fund, and Alex from GMPF. They tackled the topics of what LGPS pooling means for place-based investing, and the critical issue of tackling the disconnect between local authorities and their pension funds.

All of which was followed by a constructive discussion around challenges and opportunities involving people from around the room.

Join The Conversation

The PBII Network offers a huge opportunity for change – but to make it work we need a lot of trust around the table. It’s why hearts and minds matter. And that’s what events like yesterday are all about.

We left the session upbeat and optimistic, and a set of actions that we believe will help drive place-based investing and greater collaboration. So watch this space…

If you’d like to be a part of our PBII Network and to join the big conversation around place-based impact investing, get in touch via info@thegoodeconomy.co.uk.

What is Place-Based Impact Investing?

Place-Based Impact Investing (PBII) is defined as investment made with the intention to yield appropriate risk-adjusted financial returns as well as positive local impact, with a focus on addressing the needs of specific places to enhance local economic resilience, prosperity, and sustainable development based on the pillars of impact investing (see figure below). These pillars represent asset class categories as used by institutional investors, as well as place-based policy priority areas.PBII is about investing in a way that responds to locally identified needs and priorities, involves collaboration with local stakeholders and listening to community voice and is intentional about maximising benefits for local people and place and having a fair sharing of financial risk and reward.The original White Paper identified five traits which were simplified to four in the PBII Reporting Framework – two related to Place and two to Impact.