Opportunity
The “missing middle” presents a win-win-win opportunity that can be satisfied with patient private capital that employs the principles, discipline and accountability of commercial private equity while seeking to maximize both social and financial returns on investment.
A win for people and communities seeking employment and economic vitality, not aid:
- SMEs in frontier markets are the engine of economic growth – an engine that requires the fuel of patient, private equity capital and management support
- SMEs, not big business, are most often the source of disruptive innovation
- A recent empirical study shows that each $ invested in SMEs in frontier markets generates between $6 and $12 of economic benefit to the community where the investment is made
A win for the talented business entrepreneur who seeks capital to grow a responsible, profitable business:
- In our experience, the growth and development of the SME sector is not primarily constrained by the lack of talent but by the lack of equity capital that can fuel growth without high servicing costs
A win for the investor seeking both attractive financial returns and significant, measurable social benefit:
- The latent demand for equity capital offers an attractive commercial opportunity for investors. Strong financial returns are generated by providing liquidity where it is lacking, rather than taking incremental credit or market risk.
- Investors can know the satisfaction of doing well and doing good.