Nesta Impact Investments 1 LP

United Kingdom

Last updated 13 May 2020, by Impactyield.

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Nesta Investment Management LLP is a venture capital fund manager subsidiary focused on impact investments, and is wholly owned by Nesta - the UK's innovation foundation.

Nesta Impact Investments is a £25m investment fund investing in innovative ventures that address three major social needs in the UK:

• an ageing population;

• the learning and employability needs of children and young people; and

• the social and environmental sustainability of communities.

The fund is focused on substantial social challenges in the UK, which are more pressing at a time of constrained public finances and a weak economy. There is a need for innovation to deliver more effective products and services to address these needs at lower cost.

Such innovation requires risk capital to enhance its impact.

The fund's Investment Objective is: (i) invest in ventures whose products and services address the fund's target outcomes within these areas of social need; and (ii) to generate returns for investors.

Financial description

The fund intends to make medium term equity, quasi-equity and debt investments in approximately 20 organisations:
• whose products and services have positive impact on one or more of the Partnership’s Target Outcomes;
• where innovation and often technology are at the core of the product / service;
• with strong business models that are able to generate reasonable, sustainable returns on capital;
• that are achieving, or have the potential to achieve, impact and public benefit in the UK by providing products or services that are inclusive, accessible and affordable;
• that can provide increasing depth and strength of evidence of their contribution to the Partnership’s Target Outcomes and who rigorously measure their on-going performance;
• whose approach is scalable to meet a significant proportion of the need they address; and
• with a strong management team capable of delivering on ambitious plans.

11 years

of track record


the year funded

25,000,000 GBP


Asset manager

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Substantially reduce waste generation

Free primary and secondary education

Double the improvement in energy efficiency

Expand and upgrade energy services for developing countries

Full employment and decent work with equal pay

Key performance indicators

Fund overview

Asset manager: Nesta Investment Management

Product track record: Fund has 11 years of track record

Target IRR: 5%

Committed Capital: 17,600,000 GBP (Pound Sterling)

Target return category: Below risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 2012

Vintage year: 2012

Target region: , , ,

Target close date: 01/05/2014

Product term: 8 +4 years

Assets under management: 25,000,000 GBP (Pound Sterling)

Investment size: Min: 150,000; Max: 1,000,000; Avg: 600,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 2

Fund investments to date exited or repaid: 0

Management fee: 2.5%

Carried interest: 20%

Hurdle rate: 5%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Nesta PRI Ltd, Omidyar Network, Big Society Capital

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors




Phone number: +44 (0)20 7438 2500

If you wish to have your details removed from this database please email

Matt Mead

Chief Investment Officer

Impact Performance


Impact thesis

The fund invests in ventures with innovative products and services that aim to deliver positive impact in three areas of major social need for the UK:
• an ageing population;
• the learning and employability needs of children and young people; and
• the social and environmental sustainability of communities.
In each of these areas, the fund has a specific list of target outcomes that investee companies must address.
The fund aims to improve the Impact Performance of portfolio companies, which is assessed on three parameters, before and during an investment:
• the realised and potential impact of an organisation’s products and services on the funds’s Target Outcomes;
• the scale of output of the organisation’s products and services; and
• the impact risk of the organisations’ product and services.
The fund is targetted to improve the Impact Performance of at least 80% of its Portfolio.
The Investment Committee is responsible for ensuring that the Impact Performance targets are set for each Investment and that these are appropriately demanding.

Impact Management


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