News & Analysis

Zamo Capital inks third Big Society Capital deal, seeks to expand horizons

Having recently invested in Bristol & Bath Regional Capital, Zamo founder Jim Roth explains the firm’s future plans.

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Zamo Capital is seeking nascent impact fund management firms. The firm recently inked its third deal on behalf of Big Society Capital – backing a UK-based real estate impact firm – and is now on the hunt for both institutional investors with capital to allocate and emerging impact managers ready to scale up.

Set up by impact stalwart and Leapfrog Investments co-founder Jim Roth, Zamo launched in 2019 as “Europe’s first specialist investor in impact investment firms”. Big Society was the firm’s first backer, and provided the capital used for the firm’s latest deal, investing in Bristol & Bath Regional Capital.

Roth explained to New Private Markets that BBRC was the firm’s third investment on behalf of Big Society Capital. The previous commitments were made to Social and Sustainable Capital and Ascension Ventures.

Under the terms of its mandate, Zamo is expected to do one more investment on behalf of Big Society after BBRC. Zamo then hopes to broaden out the strategy and collaborate with other impact firms. Roth said: “We are also looking to do deals outside of the Big Society mandate. We are looking invest in and alongside emerging European growth, early PE stage impact managers. With the same purpose as the BSC mandate – to provide advice, counsel and capital to help those emerging impact managers scale.”

The BBRC investment will be used to scale BBRC Homes, a real estate asset manager focused on building key worker housing in southwest England. BBRC has previously helped develop the Elderberry Walk development, 161 mixed-tenancy properties near Bristol. Zamo did not disclose the size of the investment, but it is expected to generate core plus returns of 6-8 percent.

Zamo senior associate Tom Savory said: “BBRC are building on their track record in financing quality, relevant and affordable housing in southwest England. This is a great example of a collinear profit and purpose investment strategy. There is a huge need in the southwest for quality, reasonably priced and ethically managed key worker housing.”