GPCA's Impact Investing Council recently gathered to compare notes on the market. Key takeaways from the discussion:
A growing number of LPs are committing to impact opportunities through separately managed accounts (SMAs) rather than commingled funds in order to target specific impact outcomes, such as financial inclusion or climate adaptation, with metrics tailored to their individual goals.
Investors observe a sizeable funding gap for growth-stage impactful businesses in their markets. GPs are participating in more follow-on rounds for existing portfolio companies to support their journey to profitability – rather than backing new ventures – as a result.
Impact investors are beginning to employ generative artificial intelligence (AI) tools such as Briink to enhance impact measurement, reporting and portfolio analysis.
In March 2021, Navegar invested in MDI Novare, a Philippines-based IT company specializing in custom application development, infrastructure, data analytics and IT security solutions for businesses and the public sector. Navegar was interested in partnering with Myla Villanueva, who founded and successfully built MDI at a time when female entrepreneurship in Southeast Asia was exceedingly rare.
With Navegar's support, MDI has experienced robust growth: from 2019 to early 2024, revenue rose 17% and EBITDA grew 13%. The employee count increased from 650 in 2021 to over 850 by May 2024. Villanueva focuses on empowering women in a male-dominated industry, implementing initiatives like breastfeeding rooms and a "Parenting Club" for employee support. MDI also promotes inclusivity through awareness sessions on sexual orientation and gender identity, alongside resource groups for women and LGBTQIA+ employees.
GPCA recently spoke with Walid Cherif, Co-Founder and Managing Partner at BluePeak Private Capital, about the firm's role in the evolving African private credit landscape.
