Impact Investing
profit & purpose
FT - EMPEA 28 October, 2015
A leader in Impact Investment
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Vital II – Introduction – ID15RF07_07
Investments Profiles
Private Medical Center
Agri-Industrial Centre
Sector
Health Care
Agriculture
Geography
West-Africa
West-Africa
15M
15M
100% + DFI Debt
50% Partnership
Operational revenues only
Operational revenues only
20%
20%
Investment size
Ownership
Value Strategy
IRR
VITAL CAPITAL FUND
22
Investments Profiles
Private Medical Center
Agri-Industrial Centre
Sector
Health Care
Agriculture
Geography
West-Africa
West-Africa
15M
15M
100% + DFI Debt
50% Partnership
Operational revenues only
Operational revenues only
20%
20%
Investment size
Ownership
Value Strategy
IRR
VITAL CAPITAL FUND
33
Private Medical Center
The 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
44
Agri-Industrial Center
The 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
55
Vital IMPACT DIAMOND assessment model
Essentiality - 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 community. 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
66
How Impactful are our Investments?
Dimension
Is the service/product a basic
need?
Are adequate alternatives
available? (cost/quality)
PMC
5
5
Rationalization
E - Provision of advanced health
services.
E - Mostly abroad, and thus not
affordable.
AIC
5
5
Rationalization
E - Production of basic food commodities.
E - Market is currently dominated by
low-quality importation and cannot satisfy
demand
E – The likelihood of securing financing
2.5
E – The likelihood of securing
financing through alternative category
sources is low
5
through alternative category sources is low
AND Vital is likely to deliver significant added
value to the business
Who are the direct beneficiaries?
2.5
B – targeting Middle to High-middle
class
5
B – Targeting the entire population; direct
to supermarkets and clients
How many Beneficiaries?
2.5
B – 50,000 at full capacity
5
B – 1.6 million estimated consumers
~30% of the national consumption
Who are the workers? How
Many local jobs created?
2
L – Heavily relies on X-pats
5
L - Over 97% of the employees are local
How extensive is local capacity
building?
5
L – Local care-givers employees
are trained
5
L – Extensive training program for
employees
Additionality?
VITAL CAPITAL FUND
77
How Impactful are our Investments?
Dimension
PMC
Rationalization
AIC
Rationalization
Does the training program
extend beyond the investee’s
employees to other member of
the community?
1
L – Very limited
5
Does the company sources from
local suppliers?
2
L- Not extensively
5
L - 100% of production is conducted by OG
Does the company initiates
community engagement and
empowerment programs?
1
L– Not immediately, planning remote
diagnostics network
5
L – Yes
5
IM – Yes, the greater the business will
grow the greater the impact is
Are the impact drivers aligned w
ith the financial drivers?
VITAL CAPITAL FUND
5
IM – Yes, the greater the business
will grow the greater the impact is
L – Training to small-holder farmers
farmers who supply their production to the
organization
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Impact Profile - The Vital IMPACT DIAMOND
Private Medical Center
Agri-Industrial Center
Impact is Multidimensional and should be Profiled Comprehensively
VITAL CAPITAL FUND
99
Agri-Industrial Center from above
VITAL CAPITAL FUND
10
10
Agri-Industrial Center - Feed Mill
VITAL CAPITAL FUND
1111
Agri-Industrial Center - Eggs Production
VITAL CAPITAL FUND
12
12
Agri-Industril Center - Free Range Eggs in Village 7
VITAL CAPITAL FUND
13
13
Impact developments – Agri-Industrial Center
Overall company assessment score
Agri-Industrial Center
A-I Center
Breakdown of company assessment rating
Agri-Industrial Center
VITAL CAPITAL FUND
14
14
Private Medical Center
VITAL CAPITAL FUND
15
15
Private Medical Center
VITAL CAPITAL FUND
16
16
GIIRS Ratings
Agri-Industrial Center
VITAL CAPITAL FUND
17
17
THANK YOU
VITAL CAPITAL FUND
18
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