Creation Investments Social Ventures Fund II

United States of America

Last updated 12 May 2020, by Impactyield.

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Fund geography

Emerging countries (256)

Creation Investments Social Ventures Fund II makes equity investments in institutions that provide financial services to the bottom of the pyramid (“BOP”), including institutions that serve micro, small and medium-size enterprises (“MSMEs”), recognizing the financial opportunity and social importance of serving underpenetrated financial services markets in developing economies. Financial services include, but are not limited to, loans, deposits, card transactions, payment services, money transfers, mobile banking, and insurance products to clients that include poor and low-income households, microenterprises, small and medium sized businesses.



Financial description

The fund seeks risk adjusted, market returns through improving operations, increasing earnings, growing book value, and multiple expansion. Investment targets include but are not limited to (1) Microfinance Institutions (“MFIs”), (2) Small and Medium Enterprise financial institutions, which may be non-bank financial institutions or regulated banks (“SME Institutions”), or (3) Micro-insurance providers, branchless banking, and mobile banking services companies (“BOP Financial Service Providers”) globally. Generally, the Fund intends to acquire controlling equity stakes in portfolio companies through buyout and growth equity investments in order to effectuate financial and operational improvements, maintain impact investing objectives, and generate attractive financial returns on investment. The Fund may also make debt investments, including but not limited to subordinated debt, convertible debt, and debt with warrants, to facilitate or enhance its equity investments.

10 years

of track record

2012

the year funded

60,000,000 USD

AUM

SDG goals

SDG targets

Full employment and decent work with equal pay

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Creation Investments Capital Management

Product track record: Fund has 10 years of track record

Target IRR: 30%

Committed Capital: 75,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: , , , ,

Inception year: 2012

Vintage year: 2012

Target region:

Target close date: 01/09/2012

Product term: 10 years +2x 1-year ext

Assets under management: 60,000,000 USD (US Dollar)

Investment size: Min: 3,000,000; Max: 15,000,000; Avg: 5,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 11

Fund investments to date exited or repaid: 5

Management fee: 2%

Carried interest: 20%

Hurdle rate: 8.00%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: n.a.

Website: http://creationinvestments.com

Phone number: 13127843980.00

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Impact Performance

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n.a.

Impact thesis

The fund makes Iinvestments in institutions that provide financial services to the bottom of the pyramid (“BOP”), including institutions that serve micro, small and medium-size enterprises (“MSMEs”), provide access to capital, job creation, expansion of the missing-middle, and other critical serves for the unbanked developing economies.
With respect to targeted Social Return On Investment (“SROI”), the Fund’s sponsors are committed to achieving a positive social impact from the Fund’s investments. Accordingly, the Fund will incorporate environmental, social performance, and governance (“ESG”) considerations into its investment and portfolio management process. ESG considerations include, but are not limited to, environmental impact, carbon footprint, environmental exclusions, BOP clients served, jobs created and sustained through MSMEs, percentage of women served, and number of dependents in BOP households directly impacted through direct economic activity. The Fund will maintain active governance in each 22 investment given the significant ownership obtained, including board and shareholder representation and control. In addition, the Fund will work with the institutions in which it invests in an effort to institutionalize transparent, comparable and comprehensive social impact standards.

Impact Management

n.a.

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