A group of arts organisations is launching a funding model pairing private investors with UK arts and culture bodies.

The Arts Ventures initiative involves the Rayne Foundation, the Investing for Good consultancy, London-based Poet in the City, Live Theatre in Newcastle-upon-Tyne and arts thinktank Mission Models Money.

Tim Joss, director of the Rayne Foundation, said the venture aimed to introduce a fundraising approach focused on “non-grant finance”.

“Given low returns, private investors are seeking projects that offer a ‘blended return’ – a cultural and social, as well as financial, one,” said Joss.

“A museum may seek a mortgage for a capital project, for example. Under this initiative, investors get interest and the reward of seeing the cultural and social benefits of an expanded museum.”