$1Bn Impact Fund

Global investment fund is one of the most pivoted aspects of the investment sector. By being a fund that invests in businesses located anywhere in the world, it identifies the best investments from a wide range of securities. 

When the client came to us, they were looking to raise $1 billion capital from global LPs preferably belonging to categories like – institutional investors, family offices, credit desks, and registered investment advisors. 

“Belonging to the social impact sector, the fund invested in a broad spectrum of fixed income securities and international dollar denominated bonds with maturities of more than one year. These securities targeted advancements impacting health, infrastructure, education, environment, clean water availability, energy and food, primarily in emerging markets. The fact that they had their focus on impact based investments made us believe that raising capital won’t be very difficult for the fund.” – Ash Narain, founder Marquee.

Impact funding remains a rather new domain. Coined only in 2017, impact funds are still finding their place on the investors’ portfolio on a mass scale. 

At present, the fund is majorly concentrated on four key elements – 

• Climate related solutions, which consist of low-carbon investment opportunities.
• ESG (environmental, social, and corporate governance) related funds.
• Focus on companies that deal with over-harvesting, habitat destruction, and the introduction of invasive species.
• Rising social inequalities instances on a global scale. 

On the investment front, investors are looking for these elements in an impact fund – 

• A strong business model with high financial return on investment (ROI). 
• Straightforward social impact goals which align with investors’ portfolio.
• Clear impact metrics in addition to a well-thought strategy that achieve the metrics
• A mission-driven founder and team having an in-depth understanding of the market and their product.

What worked for us was that our client crossed all these elements, giving us an assurance that finding investors for them won’t be very difficult.