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Impact Investing
A leader in Impact Investment
FT - EMPEA 28 October, 2015
Vital II – Introduction – ID15RF07_07
profit & purpose
VITAL CAPITAL FUND 222
Investments ProfilesPrivate Medical Center Agri-Industrial Centre Sector Health Care Agriculture
Geography West-Africa West-AfricaInvestment size 15M 15MOwnership 100% + DFI Debt 50% PartnershipValue Strategy Operational revenues only Operational revenues onlyIRR 20% 20%
VITAL CAPITAL FUND 333
Investments ProfilesPrivate Medical Center Agri-Industrial Centre Sector Health Care Agriculture
Geography West-Africa West-AfricaInvestment size 15M 15MOwnership 100% + DFI Debt 50% PartnershipValue Strategy Operational revenues only Operational revenues onlyIRR 20% 20%
VITAL CAPITAL FUND 444
Private Medical CenterThe need: Health system suffers from a lack of human and institutional capacity and a scarcity of diagnostic medical devices. The Investment: A multi-specialty private healthcare poly-clinic located in the capital’s center.The goal: To improve the standard of healthcare available in the country and to increase local staff competency and education.The center: 2 operating theaters, 5 diagnostic floors (MRI, CT and more) and 5 floors of doctors’ clinics. Provides international-quality diagnostic and same-day ambulatory procedures at affordable prices, as a substitute to medical services currently obtained abroad.Risks:
• Equipment Maintenance• Can costumers pay?• Insurance programs available?
VITAL CAPITAL FUND 555
Agri-Industrial CenterThe need: 40% of the population are undernourished. The local eggs market is dominated by low quality imports. The Investment: A center providing 700 farmers with animal feed, live stock, services, financing, collection, packaging and marketing of 300K eggs per day.The goal: Increased food security through the establishment of a local agriculture brand, and to improve the profitability of each farmer and their families by providing 100% off-take commitment.The Center: Heavy equipment, Hatchery, Silos, packaging, transportation and marketing.Risks:• Local market / Import• Currency fluctuations• Rural community, low literacy rates
VITAL CAPITAL FUND 666
Vital IMPACT DIAMOND assessment modelEssentiality - The extent to which an investment addresses an essential, previously unmet need and the role of the investment as the generator of impact
Beneficiaries - Each investment is assessed to determine the socio-economic segmentation of beneficiaries and the scale of influence
Locality - Measures the extent to which an investment engages with and generates benefits for the local commu nity. Creation of local employment, produce commodities for local consumption rather than for export, and training.
Intrinsic Impact - Evaluates the correlation between the financial and Impact drivers
VITAL CAPITAL FUND 777
How Impactful are our Investments?Dimension PMC Rationalization AIC Rationalization5
5555
Is the service/product a ba-sic need?
Who are the direct benefi-ciaries?How many Beneficiaries?Who are the workers? How Many local jobs created?How extensive is local ca-pacity building?
E - Production of basic food commodi-ties. E - Provision of advanced health services. 5
2.52.525
B – targeting Middle to High-mid-dle classB – Targeting the entire population; di-rect to supermarkets and clientsB – 50,000 at full capacity B – 1.6 million estimated con-sumers ~30% of the national consumptionL – Heavily relies on X-pats L - Over 97% of the employees are localL – Local care-givers employ-ees are trainedL – Extensive training program for employees
Additionality? 2.5 5E – The likelihood of securing financing through alternative cat-egorysources is lowE – The likelihood of securing financ-ing through alternative category sources is low AND Vital is likely to deliver significant added value to the business
Are adequate alternatives available? (cost/quality) E - Mostly abroad, and thus not affordable. E - Market is currently dominated by low-quality importation and cannot sat-isfy demand55
VITAL CAPITAL FUND 888
How Impactful are our Investments?Dimension PMC Rationalization AIC Rationalization
5
5 5
Does the company sources from local suppliers?
Are the impact drivers aligned with the financial drivers?
L - 100% of production is conducted by OG farmers who supply their production to the organizationL- Not extensively2IM – Yes, the greater the busi-ness will grow the greater the im-pact is
IM – Yes, the greater the business will grow the greater the impact is
Does the company initiatescommunity engagement and empowerment programs?1 5L– Not immediately, planning re-mote diagnostics network
L – Yes
1 5Does the training program extend beyond the in-vestee’s employees to other mem-ber ofthe community? L – Very limited L – Training to small-holder farm-ers
VITAL CAPITAL FUND 999
Impact Profile - The Vital IMPACT DIAMOND
Impact is Multidimensional and should be Profiled Comprehensively
Private Medical Center Agri-Industrial Center
VITAL CAPITAL FUND 101010
Agri-Industrial Center from above
VITAL CAPITAL FUND 111111
Agri-Industrial Center - Feed Mill
VITAL CAPITAL FUND 121212
Agri-Industrial Center - Eggs Production
VITAL CAPITAL FUND 131313
Agri-Industril Center - Free Range Eggs in Village 7
VITAL CAPITAL FUND 141414
Impact developments – Agri-Industrial Center
Breakdown of company assessment rating
Overall company assessment score
Agri-Industrial Cen-ter
Agri-Industrial Cen-ter
A-I Center
VITAL CAPITAL FUND 151515
Private Medical Center
VITAL CAPITAL FUND 161616
Private Medical Center
VITAL CAPITAL FUND 171717
GIIRS Ratings
Agri-Industrial Center
VITAL CAPITAL FUND 181818
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