In May, the social enterprise, which operates 39 settings in London, launched a seven-year charity bond with a target of £1.5m to help it achieve its plans of doubling its number of sites.
Six months on, LEYFS has reached its target through the charity bond, which is promoted by Triodos Bank’s crowdfunding platform, to help it deliver on its first-year strategy. Since launching the charity bond, the social enterprise has expanded capacity in its existing Barking Riverside nursery and will be opening its first ever purpose-built setting in Thames Reach in early 2023.
The social enterprise says it has a number of other nurseries currently in the ‘due diligence phase with further opportunities in pipeline’.
With the help of the charity bond, LEYF ultimately plans to double its number of nurseries from 39 to 80 and provide 10,000 children, particularly those from disadvantaged backgrounds across London, with access to high-quality and affordable early years education.
According to LEYF, the bond offer has also generated new leads and interest in the growth of the social enterprise from large philanthropic foundations including the Joseph Rowntree Foundation (JRF).
June O’Sullivan, LEYF chief executive, said, ‘Young children, especially those from the most disadvantaged backgrounds, need our support more than ever which is why we are committed to tackling the education inequalities that exist by helping transform children’s lives. We have recently celebrated one year in Newham where we took on three nurseries otherwise at risk of closure during the pandemic.’
Richard O’Brien, corporate finance manager at Triodos, added, ‘We were delighted to be able to support LEYF with its growth plans by raising this capital. This bond will work alongside philanthropic donations and other debt to fund the expansion and of course increase the impact, that LEYF creates with those new nurseries.”
Denise Holle, head of social investment at JRF, commented, ‘Supporting LEYF to open more nurseries and reach more children from deprived areas will have a meaningful impact on individual families, while also strengthening LEYF’s ability to influence wider changes in policy and practice.’