Investment Advisory

Definition of Impact Finance
“Impact Finance” encompasses any profitable investment activity that purposefully generates measurable public benefits.
“Impact investors want to move beyond socially responsible investments [...] Instead, they place capital in businesses and funds that can provide solutions at a scale that purely philanthropic interventions usually cannot reach […]” (Monitor Institute 2009).

Alphamundi offers investment advisory services to the SocialAlpha Impact Fund, an umbrella fund registered as a SICAV-SIF in Luxembourg and promoted by Banque de Luxembourg. The fund’s mission is to achieve double bottom line returns (financial, social/environmental returns) by funding institutions whose products and services contribute to the advancement of client beneficiaries at the Bottom of the Pyramid in developing countries.

Since July 2009, the Group has been advising two sub-funds, SAIF Bastion and SAIF Venture, for which it sources, analyzes, and monitors investments covering fixed income deals (SAIF Bastion) as well as private equity investments (SAIF Venture), with a strong emphasis on Latin America.

The Investment Process
Once a due diligence visit has been conducted on-site, Alphamundi´s investment team performs a thorough analysis of the relevant institution, taking into account its position within the local industry, as well as the country’s economic and political environment. The analysis is then presented to the Fund’s investment committee for final approval. AlphaMundi’s investment committee is composed of a group of experts in the area of microfinance, small and medium-sized enterprises (SMEs), and financial markets. Throughout the whole life cycle of its investments, Alphamundi maintains a close relationship with all investees, through regular visits and monthly monitoring that feeds a proprietary database.