Insitor impact Asia FUND A Frontier and Emerging Market Impact Venture Capital FUND A Frontier and Emerging Market Impact Venture Capital FUND 2016 The contents of this document are for information purposes only. The information on this document does not constitute an offer or solicitation to invest. Additionally, no information constitutes a concrete investment recommendation or service. Access to the products and funds mentioned on this document shall not be granted to persons who are nationals of, or domiciled in, countries where local law or regulations forbid access to such information. The same shall apply to the prospectuses of these products.
introduction Private equity funding for early stage companies that serve basic human needs Successful first close: USD 24m committed by the CDC-managed DFID Impact • Fund (UK), one European HNWI, and a European family office • The Fund will invest in 10-15 startups and early-stage businesses with the goal to improve the lives of 2 million low-income families* Target sectors : clean water, nutritious food, secure shelters, quality healthcare • and education, reliable energy sources, or comprehensive financial services • Countries : Myanmar, Pakistan, Cambodia, and India, with a strong local presence in each of the four target countries • First investment closed in February 201 6 in EduBridge, an Indian skill development and vocational training company active in underserved areas Seeking USD 10-20m additional commitment for the second close by December 2016 Downside risk protection granted by DFID to private investors * “ Low-income families” as used in this document includes “low-income” and “poor” groups as per IRIS classification 2
Fund’s objective TO PRODUCE returns for investors Creating an inclusive marketplace • We believe that long-lasting development builds on economies that allow low-income consumers, producers, and workers to operate in a fair and inclusive marketplace • The Fund’s objective is to contribute to the development of such a marketplace, serving the unmet needs of low-income communities • We select and support pioneering companies whose success will spur the creation of new markets and industries, thus creating a multiplier effect on the Fund’s initial investment • While pursuing returns as high as possible we are conscious that investing in a nascent industry in fragile economies comes at a cost, and companies delivering solutions to low-income families’ unmet basic needs may not achieve risk-adjusted-returns • Attractive upsides are expected in the most efficient industries and in countries where a socially-minded private sector is more established. Investments will be made across sectors and countries to maximize social and financial returns 3
Value for the investors proven track record, regional focus, strong governance SOLID LOCAL TEAM WITH PROVEN TRACK RECORD Since 2009, we successfully invested our first regional impact fund*. Our team built over the past six years benefits from a thorough first-hand understanding of the investees’ social, political, and businesses environment, making us a practical, patient, and relevant partner pre- and post-investment. GEOGRAPHIC FOCUS A geographically focused portfolio allows for valuable synergies, effective cross-fertilization, and the capacity to impact at industry level while the regional diversification will help build a balanced portfolio in regards to the companies’ stage, risk, and potential. STRONG GOVERNANCE The Fund is following best PE governance standards, aligned with the requirements of institutional investors such as CDC. The management team has put in place strong environmental, social, and governance (ESG) processes, and is supported by independent investment committee members as well as an advisory committee of senior professionals nominated by the Fund’s largest shareholders. *EUR 10m Insitor Seed Fund launched in 2009 12 investments – 500,000 households reached – USD 35m follow-on funding raised 4
TEAM BIOS Co-founder, Director and Investment Committee Member Previously Senior Manager at Bain & Company, leading startup and M&A engagements for leading European financial groups MICAELA RATINI Co-founder, Director and Investment Committee Member Previously with First Home PLC, Cambodia’s first affordable housing solutions company; led the company’s development through startup until fully operational NICHOLAS LAZOS CFO and Portfolio Manager Previously a management and corporate finance consultant in New Delhi. Prior to that spent time in Uganda restructuring the internal controls and process management of a rural healthcare facility VALÉRIAN FAUVEL 5
Local team India Market Intelligence Unit - Director New Delhi, India Previously with an Indian low-carbon investment advisor and the venture fund of ICICI Group. Also was co-promoter of a venture backed affordable housing finance company KARAN GUPTA Myanmar Market Intelligence Unit - Director Yangon, Myanmar 6 years experience in Myanmar and an expert in Burmese culture and social environment. His local expertise led him to write a Burmese language history curriculum. Previously worked in the US insurance industry BRADLEY KOPSICK Pakistan Market Intelligence Unit - Director Karachi, Pakistan Previously with Acumen Fund Pakistan; has a deep knowledge of the challenges and opportunities for socially driven companies in Pakistan. Prior to Acumen Fund worked in Investment Banking for BoA-Merrill Lynch’s Pakistan HUMZA KHAN affiliate 6
Example of investment First finance Plc. - Portfolio company of the Insitor seed fund The vast majority of Cambodian households have no access to formal housing finance. Most only hold a “soft” property title to prove Social issue addressed ownership of the land they live on Target customers are low- and middle-income Cambodian households seeking to invest in their first home, but who do not meet the usual Target customer criteria of commercial banks Since 2009, First Finance provides these families with loan products and services specific to their needs, such as long-term home loans and Value proposition medium-term home improvement loans Late 2009, the Insitor Seed Fund invested a first tranche of equity in First Finance. The company’s loan portfolio then was less than USD Insitor’s investment 300,000 Six years later, First Finance has extended over 4,500 housing loans, Growth growing its loan portfolio to USD 21m Along the way, Insitor provided follow-on funding up to USD 1.1m together with operational and governance support. First Finance attracted over USD 2.5m equity and USD 20m in debt from local and Insitor’s Value add foreign investors such as EMI, Norfund, Incofin, Blue Orchard, and Deutsche Bank. The company is profitable since 2010 7
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