Shared Interest Guarantee Fund

United States of America

Last updated 11 May 2020, by Impactyield.

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Shared Interest is a social investment fund launched in 1994, after the end of apartheid, to enable international investors to participate in building an equitable South Africa. Shared Interest unlocks Southern Africa's own financial and human resources by guaranteeing Southern African bank loans to black-owned small and growing businesses and smallholder farmers, microfinance and affordable housing organizations serving low-income black Southern Africans. Shared Interest works through its South African partner, the Thembani International Guarantee Fund, to provide technical support to beneficiaries and lenders alike. The objective is to unlock a steady flow of commercial capital to the country's economically marginalized communities, while building the new partners' capacity to work together in the future without guarantees.


Asset class

Fund style

Not listed


Financial description

Over the past 20 years, Shared Interest has maintained a 93% repayment rate from our borrowers and a 100% repayment rate to our investors. The fund creates significant social impact with a product that is lower risk and higher liquidity than many other fixed income products available in the impact investing space. Shared Interest's guarantee fund is invested in high quality securities and used to back letters of credit issued in local currency to Southern African financial institutions in order to partially secure loans to economically marginalized black borrowers.
Shared Interest's 100% repayment rate is made possible because the fund retains a guarantee loss reserve fund (GLRF) to absorb losses in the event of defaults. The GLRF maintains a minimum of 5% of our current outstanding guarantees in the GLRF at all times. Should the GLRF be exhausted, Shared Interest has the option of drawing on its $3 million subordinated facility from the Overseas Private Investment Corporation.
The result to date is that while 3.0% of the total amount of guarantees extended have resulted in guarantee calls, the GLRF has more than covered these calls. For more information please see our investment prospectus.

28 years

of track record

1994

the year funded

34,000,000 USD

AUM

Asset manager

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Promote policies to support job creation and growing enterprises

Increase aid for trade support

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Shared Interest.

Product track record: Fund has 28 years of track record

Target IRR: 2%

Committed Capital: 15,443,500 USD (US Dollar)

Target return category: Below risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 1994

Vintage year: 1996

Target region: , ,

Target close date: n.a.

Product term: 3 to 10 years

Assets under management: 34,000,000 USD (US Dollar)

Investment size: Min: 100,000; Max: 10,000,000; Avg: 250,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 80

Fund investments to date exited or repaid: 80

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Some of Shared Interest's most well known investors over the years have included: Ford Foundation, United Methodist General Board of Pension and Health Benefits, Calvert Social Investment Foundation, Trust Department of the Oneida Tribe of Indians of Wisconsin, J.P. Morgan Chase Bank, Deutsche Bank America's Foundation, Partners For The Common Good, The Riverside Church, Catholic Health Initiatives, and The Global Fund for Women.

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors

Contact

E-mail: n.a.

Website: http://www.sharedinterest.org/

Phone number: 646-442-0184

If you wish to have your details removed from this database please email gdpr@impactyield.com


Casey Cline

Director of Impact Investing and Operations

Donna Katzin

Executive Director

Impact Performance

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n.a.

Impact thesis

Since Shared Interest's inception, its guarantees have helped low-income and low-wealth black Southern Africans launch and sustain 209,768 microenterprises, build 101,350 new homes, improve 20,270 existing homes, and create and maintain 1,920,693 jobs. In total, we have benefited 2,252,081 people. In addition, we have helped to move each of the country's major banks to extend loans to this market, and have increased the capacity of participating beneficiary businesses and banks to work together as commercial partners for the first time.
The importance of Shared Interest’s work has been recognized by: Former President Nelson Mandela; former South African Finance Minister Trevor Manual; South African Finance Minister Pravin Gordhan; Archbishop Emeritus Desmond Tutu; Anglican Archbishop Emeritus Njonkulu Ndungane; Brigalia Hlope Bam, former General Secretary of the South African Council of Churches; the Southern African Catholic Bishops’ Conference; and South Africa’s Jewish Board of Deputies.

Impact Management

n.a.

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