In 2023, HL BaSE partnered with the Growth Impact Fund (“GIF”), to further its work supporting underrepresented founders creating positive social or environmental impact through their business.
GIF is a joint venture between UnLtd, Big Issue Invest and Shift, tackling the structural barriers to social investment highlighted by the Adebowale Commission, which found that despite £600,000,000 of public investment since 2010, the social investment market remained unchanged.
“GIF is designed to support and invest into diverse-led social businesses. Access to quality legal support and guidance is often a huge barrier for so many entrepreneurs, particularly those from marginalised backgrounds, especially when they are accessing investment for the first time. Our partnership with Hogan Lovells has been vital in the delivery of this fund. They have provided expect pro bono advice and support, enabling so many social businesses to deliver lasting change through their work.”
David Bartram, Director of Delivery & Investment, UnLtd
There is often an imbalance of power in investment scenarios, so GIF wished to ensure that its investees are properly represented. Receiving effective legal advice is a key barrier GIF seeks to address, and approached HL BaSE to provide legal advice to the GIF investees. During 2023, HL BaSE advised the first five GIF investees. The teams, led by partners Anthony Doolittle, Sylvain Dhennin and Bryony Widdup, advised the investees on a range of issues, from negotiating the investment documents, to employment and key person insurance issues. HL BaSE provided 746 hours of legal advice to the investees, worth £493,575.
Accessible legal advice is essential to an equitable investment process. Balanced representation ensures that investees are fully aware of the implications of taking on investment and that their position is fairly represented. Legal advice mitigates the risk that an investee enters into arrangements that will not provide them with a long-term benefit. By working with GIF to provide their investees with legal advice, HL BaSE is ensuring that these underrepresented founders are properly supported, allowing them to continue their work and increase their positive impact.
"It was great to work with the Hogan Lovells team on our fundraise with GIF. We really appreciate the time of everyone involved and are excited about working with GIF as a mission-aligned funder. The investment is invaluable in supporting us to scale our business and impact to help more people access the financial support they need."
Ren Hooi, Founder, Lightning Reach
One of the investees HL BaSE advised is Lightning Reach, a financial support portal providing access to a range of personalised financial support, empowering users to build financial resilience and wellbeing. GIF invested £250,000 in Lightning Reach.