Creation Investments Social Ventures Fund III, LP
United States of America
Last updated 12 May 2020, by Impactyield.
Creation Investments Social Ventures Fund III 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”) globally.
The Fund recognizes 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.
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.
Increase access to financial services and markets
Key performance indicators
Asset manager: Creation Investments Capital Management
Product track record: Fund has 7 years of track record
Target IRR: 30%
Committed Capital: 125,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Closed - still investing
Inception year: 2015
Vintage year: 2015
Target region: Emerging countries
Target close date: 01/07/2016
Product term: 10 year term
Assets under management: 100,000,000 USD (US Dollar)
Investment size: Min: 3,000,000; Max: 30,000,000; Avg: 11,000,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 8
Fund investments to date exited or repaid: 1
Management fee: 2%
Carried interest: 20%
Hurdle rate: 8%
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
The fund makes 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”), 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.