Mozambique SME Impact Fund I
Last updated 11 May 2020, by Impactyield.
The Mozambique Impact Fund I makes early and expansion stage investments in small and medium-sized enterprises that contribute to job creation, improved access to goods/services for low-income consumers, and localization of supply chains in Mozambique.
The fund will focus mainly on providing equity and quasi-equity or mezzanine instruments (ranging from US$300,000 to US$1 million) to high-impact, high-growth SMEs. Equity investments will be limited to minority shareholding of portfolio firms. Non-equity financing will be self-liquidating over the life of the investments. Eligible portfolio companies must have assets and annual revenues of less than US$ 5 million. Additional to the investment capital fund, Impacto Capital offers a business support facility that matches wrap around service funding for portfolio companies, offering our SME investees access to management, financial and operational expertise.
Equal rights to ownership basic services technology and economic resources
Encourage companies to adopt sustainable practices and sustainability reporting
Expand and upgrade energy services for developing countries
Full employment and decent work with equal pay
Increase access to financial services and markets
Key performance indicators
Asset manager: Impacto Capital
Product track record: Fund has 6 years of track record
Target IRR: 10%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return Below risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Open - no committed capital
Style/Stage: Growth Stage
Inception year: 2016
Vintage year: 2017
Target close date: 01/06/2017
Product term: 10 year term
Assets under management: 14,000,000 USD (US Dollar)
Investment size: Min: 300,000; Max: 1,000,000; Avg: 600,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 3%
Carried interest: 20%
Hurdle rate: 5%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Impacto Capital's Mozambique SME Impact Fund is the first impact focused investment vehicle in Mozambique focusing on “missing middle” SME funding. Firms receiving investment through the fund must show significant potential for growth and substantial contribution to the fund’s key impact metrics. Companies must be ESG compliant and have a clear growth and impact strategy.
Target impacts include the transfer of skills and technology, environmental conservation, job creation, and provision of goods and services to lower-income consumers. While the fund is not sector-specific, companies in the extractive and real estate industries are excluded from consideration.