Shadows and lights - a challenging dialogue between capital market and the mother of all industries

1. Pieter Bruegel, 1563

2. opes impact fund
www.opesfund.eu
finance for development
S3
an enabling nest to
fuel investment capital
to energy social
enterprises

3. a “new saffron revolution”
president Modi “re-Invest” summit
world bank’s
lighting africa program
obama “power africa”
electrifi (EU)
20 bln $ jv
(softbank - bharti and
foxconn tech)
impact investing responsability
debt dedicated
fund 30 bln $
calstrs
3.7 bln $
university of
california 1 bln $
dedicated
crowdfunding platforms
“smart power for rural development”
initiative (rf 75 mln $)

4. a growing “momentum” for energy investments
Total AUM by sector
n=145; AUM-weighted average; Total AUM=USD 60bn
Change of allocation planned over the next year, by sector
Ranking by number of respondents who chose “increase”
27%
26%
27%
10%
5%
5%
Housing
Other
Financial services
(including
Microfinance)
Energy
Healthcare
Food &
Agriculture
Source: GIIN, J.P. Morgan
Global Social Finance
Eyes on the Horizon
04 May 2015

6. • A growing appetite for social products (LOHAS market)
• A new evolution of CSR
• Impact investing
megatrends effecting all industries

7. finding of
joint activity
led by selco
www.selco-india.com

8. Expectations Realities
Periods of
turnaround
3-4 years 5-10 years
Scale Expansion and results oriented
Process and results
oriented
Exits 5 years 8-10 years
IRRs 15% 5%
Cost of raising
capital
1-3% and
6-12 months
5% and
12-18 months
Impact Hype around surface level data
Wide and deep reach
in communities
Investment Expectation Gaps
Source: Selco

9. Pathways to move forward
• Understanding and acknowledging field complexities and realities
• Articulating realistic expectations for time horizons, scale, and returns
• Recruiting talent based on experience and sensitivity to the needs of the poor, over
educational qualifications
• Aligning investments with the realities of ecosystems and market potential
• Integrating language and clauses in term sheets to prevent mission drift
• Perpetuating learnings to stakeholders in the market through training and course material
• Advocating for policy to stimulate sustainable investment and business models over
the long-run
• Understanding the role of hybrid capital
Source: Selco

10. cor
porations
found
ations
multinat
ionals
government
s
Social
enterpris
es
un
ngos
finan
cialinstitution
s
internationa
lagencies
impact investors
incubators
research centers