The second fund, which includes many follow-on investors from the first fund, has raised more than three times as much private sector money as Bridges CDV Fund I.

Philip Newborough, chief executive of Bridges, says: ‘The success of our fundraising indicates a growing interest in investments that can deliver attractive financial returns while making a positive social or environmental impact.’

The first fund raised £20 million of private sector investment in 2002 and was backed with matching investment from the Department of Trade and Industry. By contrast, Bridges CDV Fund II is made up entirely of private investment.

Investors in the new fund include financial institutions such as HSBC, Lloyds TSB and Citigroup. Bridges’ investments now employ over 800 people, nearly 200 of whom were formerly unemployed. In addition to focusing on under-invested geographical areas, the second fund plans to invest up to 25 per cent in UK businesses that produce strong educational, healthcare or environmental benefits.