Investment Approach
We have developed an investment outlook which is focused on meeting the varied needs of the markets we are interested. From our research and collaboration with local stakeholders, we realise the importance of large scale projects. Certain projects have greater opportunities for job creation across societal lines, they can improve the productivity capacity of key sectors and can support the development of physical and institutional infrastructure that can in turn catalyse further development. This includes: large scale infrastructure, commercial and residential real estate, financial inclusion, energy and in some areas agriculture.
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On these larger deals the fund is looking for senior debt between 5 million and 15 million, with a maximum term of 10 years.
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We run a screening assessing the investment opportunity leading with the financial projections, the asset base and the team leading the project. If the investment opportunity passes these red lines, we will enter in a formal due diligence where we will do a deeper dive into the financial opportunity and impact potential.
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What we have also found is that SMEs make up a large portion of economic activity globally. This applies to emerging and frontier markets. SMEs provide job opportunities, innovation, improve competitiveness needed for sectors to thrive and for entrepreneurial talent to grow. Empowering local entrepreneurs is an important component of increasing stability, and economic empowerment. It is also an important to for communities to take charge of their own development. Despite their importance, SMEs continue to face tremendous obstacles accessing financing.
We therefore wanted create a model with allowed our fund to cater to both large scale projects and SMEs. As a result we look at deals of much smaller ticket size, prioritising innovative entrepreneurs whose products or services have a high impact potential and high growth potential.
We will run a screening process that places a high focus on growth planning, management teams and the theory of change.
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Real Estate
Agriculture
Infrastructure
Energy
Financial Inclusion
Lean Framework
We recognise that what matters is the quality of investment, the job creation and the spill overs in the sectors that occur from it. In addition, we know post conflict investment is not a one size all strategy. To find the right opportunities, we have developed our LEAN approach.
Local understanding Learning from contributions in the field of impact investment such as from the Global Impact Investing Network, the VEM teak will place high value working with strong local team to establish contextual information
Entrepreneurial Talent We will place a high value on a strong management team and the entrepreneurial vision that drives them.
Amelioration By investing in bread-and-butter industries such as infrastructure, energy, financial inclusion, we are directly investing in products / services that will ameliorate quality of life.
New Partners We will use the maturity of the impact investment sector to establish co-investment capital to improve our impact rich and work in collaboration to manage our investments,