Creation Investments Social Ventures Fund I
United States of America
Last updated 12 May 2020, by Impactyield.
Creation Investments Social Ventures Fund I has been established to make control equity investments in earlier stage, Microfinance Institutions (MFIs) and Small and Medium Enterprise (SME) lenders globally. Investments in microfinance create opportunities to impact significantly those living at the bottom of the economic pyramid through access to capital for micro and small-business activity. We seek to maximize both financial and social returns, creating wealth for all of our stakeholders, especially our end clients. The Fund targets control equity positions in individual, Tier 2 MFIs - those in the growth portion of their life cycles, having reached profitability – purchasing at or below 1x Net Book Value. We seek to achieve greater scale through growth and consolidation, while also expanding our financial product offering with micro-savings and microinsurance. The Fund will hold three to five control equity investments in each major region - Latin America, Asia, and Eastern Europe - resulting in a diverse, global portfolio in core emerging markets. We play an ongoing, active role in our portfolio companies bringing management expertise to all levels of the organization. Our deep team experience along with our network of management talent leverages financial capital with human capital.
We seek to maximize financial return on investment through attractive entry, institution building, expanding the product offering through bank licensing, and adding management depth.
Key performance indicators
Asset manager: Creation Investments Capital Management
Product track record: Fund has 14 years of track record
Target IRR: 30%
Committed Capital: 31,800,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Closed - no longer investing
Inception year: 2008
Vintage year: 2009
Target region: Emerging countries
Target close date: n.a.
Product term: 10 year term
Assets under management: n.a.
Investment size: Min: 1,000,000; Max: 7,500,000; Avg: 3,500,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 7
Fund investments to date exited or repaid: 3
Management fee: 1.95%
Carried interest: 20%
Hurdle rate: 10%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: We have attracted an entirely new group of LPs to the Impact Investment space having high net worth individuals, family offices, and several institutional investors as our investor base.
Limited Partner / Investor Type: Family Office, Other Institutional Investors
Targeting social returns through access to capital programs resulting in increased incomes, job creation, and other financial management tools. We require environmental and social protections, using negative and positive screens.