Grassroots Business Investors Fund I, L.P.
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50)
The Grassroots Business Fund (GBF), working through a unique nonprofit/for-profit hybrid model, is able to partner with "High Impact Businesses" to provide them with both the investment capital and the business advisory services they need to overcome the challenges they face.These "High Impact Businesses" provide sustainable economic opportunities to millions of people at the base of the economic pyramid (BoP). Their work empowers the poor in developing countries as independent entrepreneurs and consumers of affordable goods and services.
Through the private investment fund, Grassroots Business Investors Fund ("GBI-I"), GBF makes equity, mezzanine equity, mezzanine debt, and straight debt investments. These customized investment structures ensure that GBF’s investment performance is aligned with the businesses’ performance, while providing a form of capital suitable for long-term investment in wealth-creating businesses that service the base of the pyramid.
The non-profit, Grassroots Business Partners (GBP) provides grant-funded management support sourced from GBF staff, expert consultants, and local service providers. The focus is on enhancing several core areas, including financial and strategic planning, corporate governance, human resource management, marketing, supply chain management, and management information systems (MIS).
GBF traces its origins back to the International Finance Corporation (“IFC”) initiative in 2004.
Financial Returns: GBF’s existing portfolio is currently generating a 6.2%* current yield as of June 30, 2011. With successful exits in the coming years, GBF estimates that the upside return could range from 10% to 15%. This does not take account of losses, which hopefully will be limited by GBF’s extensive monitoring and significant value added to investees accomplished through a hands-on portfolio management approach involving staff based both locally and at headquarters.
* Note: This current yield does not factor in upside options or potential losses
of track record
the year funded
Equal rights to ownership basic services technology and economic resources
Universal access to safe and nutritious food
Universal access to modern energy
Promote policies to support job creation and growing enterprises
Full employment and decent work with equal pay
Increase access to financial services and markets
Key performance indicators
Asset manager: Grassroots Business Fund (GBF)
Product track record: Fund has 12 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return Below risk-adjusted market-rate of return
Fund domicile: Cayman Islands
Product status: Open - committed capital
Style/Stage: Growth Stage
Inception year: 2011
Vintage year: 2012
Target region: Africa, Eastern Africa, Emerging countries
Target close date: 01/11/2012
Product term: 10
Assets under management: 60,000,000 USD (US Dollar)
Investment size: Min: 100,000; Max: 0; Avg: 1,000,000
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: 0
Management fee: 3%
Carried interest: 20%
Hurdle rate: 6%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: http://www.gbfund.org/Supporters
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Other Institutional Investors, Retail Investors
Phone number: 202-518-6865
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Chief Operating Officer
GBF’s High Impact Businesses have generated economic opportunities and improved the lives of over 9.4 million people in Africa, Asia and Latin America.
GBF collects basic metrics, takes steps to ensure data quality, creates dashboards to visualize the important metrics, and analyzes that information in order to make improved management decisions. In addition, GBF provides support to its portfolio companies to enable them to carry out the same process. For more information, see: http://www.gbfund.org/iPAL
Bottom/Base of the PyramidCommunity Investing/LocalMinorities/Previously Excluded PopulationsRuralUrbanWomen