Impact Investments

Worldwide, billions still live in poverty and lack basic sanitation, while hundreds of millions suffer from malnutrition, illiteracy and lack of access to energy. 40% of world population earn 5% of global income, and 80% of world population live in countries with widening income inequality. Global CO2 emissions have risen 20% since 1997, and G8 countries would need to invest USD 1 trillion per year until 2050 to avoid a temperature rise of more than 2°C above pre-industrial levels. OECD Official Development Assistance stands at less than half what it should be to reach the Millennium Development Goals, but still dwarfs global philanthropic commitments to developing countries. Additional resources will be required to successfully address global issues, and there is no better place to source new funding than the capital markets, valued at more than USD 200 trillion at the end of 2010, 18% of which is in Emerging Markets (McKinsey 2011).

According to the Global Impact Investing Network (GIIN), “Impact investments aim to solve social or environmental challenges while generating financial profit. Impact investing includes investments that range from recovering principal capital to offering market-rate or even market-beating financial returns. The impact investing industry has the potential to steer significant sums of money to market-based solutions to the world's most pressing challenges, including sustainable agriculture, affordable housing, affordable and accessible healthcare, clean technology, and financial services for the poor.”  

AlphaMundi specializes in the identification, funding and coaching of privately held, profitable, growth-stage businesses that operate in developing countries and provide products and services that help reduce poverty and preserve the environment. These Impact business models have the potential for regional expansion and impact at scale if they are properly financed and advised over periods of 1-3 years for debt and 5-8 years for private equity deals. In most cases, these Impact businesses are profitable and therefore denied grant funding, while also being constrained by the “Missing Middle” and lack of local debt and VC/PE financing options.

Our investment philosophy is to merge the financial discipline of the private sector with the vision of sustainable development. AlphaMundi finances Impact businesses that can build a sustainable future for all while generating attractive financial returns for patient investors.