Global Financial Inclusion Fund

Leveraging on the success of Gawa Microfinance Fund, Global Financial Inclusion Fund continues investing in a mixed equity and debt investments in microfinance and SME focused institutions in countries with a high degree of financial exclusion that are selected through a very demanding selection process. We target institutions that focus on rural or other excluded population and have a strong social commitment.

We aim to reach an attractive risk-adjusted of return (net IRR of 9%) for our investors and provide financial services to thousands of un-banked people (mainly rural excluded population) through the organizations we invest in. We have a flexible approach to invest in the optimal part of the capital structure:

•60% in debt investments - typically 2 to 3 years maturity

•40% in equity investments - both preferred and common (intention of holding a seat on the board, minority stake only, typically up to 4-5 years)

Investments range between €1~3.5 million.

The Fund is a strategic, long-term investor that helps improving the performance of institutions by providing active management support. We help them improving their governance and scale up their operations.

Alignment with our investors is key. We invest our own money in the fund and our performance fees depend on social impact achieved which is measured and externally audited by a social auditor chosen by our investors. This provides a unique way to ensure that both social and financial returns are obtained.

Financial description

Strong Private Equity Experience: We bring top private equity and venture capital knowledge and experience to the impact investing field. Our team includes top individuals that have managed large private equity portfolios. Our strong experience in Private Equity enables us to conduct a fully comprehensive due diligence process and have a solid risk management. Only 15% of the institutions where we have conducted due diligence are approved for investment.
"Boutique" Investment Approach: We take time to select the best investments in the best territories. We privilege tight and frequent contact with our investors to achieve full transparency.
Partners are aligned with investors: partners are joint investors in each fund (shared risk with investors). Partners conduct each due diligence on field, have a close relationship with institutions/ investees.
Good asset mix between debt and equity with early repayment. Distributions to investors can start as soon as 3rd year (on debt portion). No reinvestment policy, this reduces risk for investors.
Target return: Net IRR of 9%
We are one of the very few funds where performance fees are linked to Social Impact Metrics audited by a social auditor. A set of 25 impact metrics are measured on due diligence and are monitored quarterly and audited at the exit of each investment. The social auditor is chosen by the fund investors independently from the managing partners.