IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
Grassroots Business Fund
Firm Overview
The Grassroots Business Fund (GBF) is a global impact investment organization whose mission is to grow viable businesses that generate sustainable earnings or cost-savings for people with low incomes in Africa, Asia, and Latin America. Companies poised to benefit the poor in developing economies often face financing constraints and lack sources of business advice. GBF establishes innovative financing vehicles that provide long term, risk sharing capital to these businesses, while its not-for-profit component crafts incremental business advice programs to help strengthen companies' operational fundamentals. Since 2011, GBF's first private investment fund has invested over $30M and conducted over 200 advisory projects with businesses that benefit 1.7 million people per year.
Years of Operation: 5 – 9 years
% of Capital from Top 3 Investors: 50% – 99%
GBF invests in for-profit, growth stage companies committed to providing measurable and sustainable social and economic impact for low income communities. A strong business record is crucial for investees to sustain impact. Investees with excellent management, defensible competitive advantage, and proven results can maintain and expand benefits among the communities they reach. These communities benefit from companies that provide employment, income, steady purchases of inputs, and cost-saving products. GBF's portfolio focuses around business sectors with close ties to smallholder producers and low-income consumers, including agribusiness and artisanal goods sectors. These companies often face difficulties accessing risk-sharing capital. GBF uses quasi-equity/mezzanine debt investments to provide long-term investment capital that shares in company results and exits through cash flows, usually without requiring entrepreneurs to give up significant ownership stakes. GBF invests in companies in the Latin American Andean region, East Africa, India, and Indonesia.
Investment Example
Villa Andina (VA) is a Peruvian company that buys agricultural products from small-scale farmers, dehydrates the produce in its processing plant, and sells in local and export markets. VA works with over 300 families of small scale farmers in the Cajamarca region of Peru, providing technical assistance in organic and sustainable crop management. In 2011, GBF partnered with Villa Andina to help the company scale and strengthen operations through the acquisition of land, expansion of a new plant, and increase of working capital. In addition to investment funds, GBF has helped strengthen Villa Andina through business advice, such as programs to certify organic and fair trade products, and assistance implementing a new operations and financial information system.
Leadership and Team
Harold Rosen – Chief Executive Officer More Info
In 2004, Harold Rosen founded and led IFC’s Grassroots Business Initiative, which spun off into the Grassroots Business Fund in 2008. Prior to his work with GBI and GBF, Harold created and served as Director of the Small and Medium Enterprise department, a joint IFC/World Bank department established in March 2000. During his time at IFC, he also served as an Investment Officer in IFC’s Latin America and Africa Departments; IFC’s Manager for Financial Planning and Policy; a member of the task force starting IFC’s operations in the former Soviet Union; Manager in IFC’s Asia Department; and Director of IFC’s Central and Southern Europe Department. He has both funded and managed large investment portfolios, and he played a major role in starting IFC’s microfinance and SME activities, including creation and management of the Mekong and Southeast Europe Small Enterprise Facilities, two of the field-based, SME oriented technical assistance initiatives funded by the IFC and other donors and managed by IFC. |
Jaime Ramirez – Chief Investment Officer More Info
In 2008, Jaime Ramirez joined part of the founding team of the Grassroots Business Fund (GBF). Jaime is responsible for managing GBF’s investment activities globally, including the delivery of Business Advisory Services. Prior to his current role as Chief Investment Officer, he served as GBF’s Portfolio Manager for the Latin America and Asia regions. Jaime has over 15 years of experience in finance, project management, risk analysis and operations consulting in developing countries. He has helped develop GBF’s operations, standards and initiatives. Jaime became familiar with high impact businesses as a business associate for Gone Rural in the Kingdom of Swaziland, where he supported the management team through an assignment with MBAs Without Borders. |
Rebekah Plotkin – VP of Finance and Administration More Info
Rebekah is responsible for GBF’s HQ and global financial management and office administration, IT, BAS program financing, and stakeholder management. She has worked for the US Committee for UNDP and served as a delegate to the UN Conference on Sustainable Development-16. Rebekah holds an MBA from University of Maryland and a BA in International Studies from American University with a focus on International Development. She has lived in the US, UK and Cuba. Rebekah is fluent in English and knows an intermediate level of Spanish. In her spare time, Rebekah enjoys running, traveling abroad to experience cultures, good food, and long walks around DC. |
Lilian Mramba – Regional Director for Africa More Info
Lillian leads the overall GBF strategy in Africa, including management of the investment portfolio, business advisory programs, and impact measurement activities, as well as business development and partnership building. Prior to GBF, Lilian worked as a Business Assurance Manager at Moss Adams LLP and as an Associate at African Development Bank in Tunis. Lillian received an MBA with honors from Thunderbird School of Global Management, and is a Magna Cum Laude graduate from the University of Idaho with a BS in Accounting and Finance; she is also a Certified Public Accountant. Lillian is fluent in English and Kiswahili, and conversational in Spanish and French. She enjoys running, exploring the world and most recently, adventure sports. |
Natasha Barantseva – Regional Director for Latin America More Info
Natasha is responsible for positioning GBF in the Latin America region while building partnerships, identifying and structuring new investment opportunities, and supervising GBF’s portfolio and BAS programs in Latin America. She is also in charge of the day-to-day operations of the Lima office. Natasha previously worked in international finance as a Transaction Leader for IFC’s Grassroots Business Initiative (GBF’s predecessor). She holds a BA in Economics from the International University in Moscow, an MA in Liberal Arts with focus on Latin American Studies from Dartmouth College, an MBA from Georgetown University and a Certificate in Social Entrepreneurship from INSEAD. Natasha speaks Russian, English, Spanish, Italian, Portuguese and French. She enjoys running, playing tennis, dancing salsa and traveling. |
Financial Performance
Impact Performance
Percentage of Total Assets Under
Management that are Impact Investments: |
100%
|
GBF invests in businesses that generate direct and significant incremental income or cost-savings to their suppliers, employees, or customers. As part of GBF's due-diligence process, investment officers identify and quantify potential investees' social impact, and our investment criteria require that all investees generate significant, measureable impact for low-income beneficiaries. GBF prefers to work with companies that directly impact between 500 and 2000 individuals, with potential to increase and scale social impact over the course of the investment. Beyond due diligence, investment supervision regularly monitors companies' impact, while advisory services help companies expand their impact reach.
GBF invests in companies that are environmentally and socially responsible and are interested in working with GBF to improve these areas where necessary. GBF's Environmental and Social Management System (E&S) includes environmental and social due diligence screening, project categorization, action plans to address areas of non-compliance identified during due diligence, and the inclusion of environmental and social legal requirements in investment agreements. GBF strives to ensure that investees are in compliance with all relevant local, national and international social and environmental requirements. If a portfolio company is not, a plan is put in place for it to reach full compliance in an agreed upon time period.
Impact Tracking and Monitoring
Learn More
1710 Rhode Island Ave, NW, Suite 1000, Washington, DC 20036, USA
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