IMPACTASSETS 50™

An Annual Showcase of Impact Investment Fund Managers

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An Annual Showcase of Impact Investment Fund Managers

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ImpactAssets 50: A Global Landscape of Impact Investment Fund Managers
The ImpactAssets 50 (IA 50) is the first open-source, publicly published database of experienced private debt and equity impact investment fund managers.
https://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

IA 50 2013 PROFILE

Grassroots Capital
Management Corp, PBC

Total Assets Under Management: $50 – 99M
Asset Class: Private Debt - Absolute Return / Notes, Private Equity
Community Development
Financial and Economic Inclusion
Food Systems and Agriculture
Microfinance and Low-income Financial Services

Firm Overview

Category: (None)
Grassroots Capital Management, PBC (Grassroots) is an impact investment manager based in the US making global investments with a financial and social return. Grassroots plays a pioneering role in attracting private capital to impact investments, creating investment vehicles to address market gaps, and providing necessary funding to support innovative initiatives. Grassroots and its partners have been actively managing and investing in the impact investment sector since the late 1990s, beginning with some of the first microfinance equity investments, and currently manage/advise five international impact investment funds targeting microfinance, SME, affordable housing, and sustainable agriculture sectors. Our company has been a certified B Corporation since 2008 and our funds are GIIRS Pioneer Fund Managers.
Firm Headquarters: United States
Years of Operation: 5 – 9 years
Total Assets Under Management:
$50 – 99M
Total Number of Investors: Between 5 – 25
% of Capital from Top 3 Investors: 50% – 99%
Investment Thesis:
Grassroots' activities are motivated by a belief that those blessed with abundant human and financial resources have an obligation to pursue economic justice and community empowerment both at home and globally. Our funds make investments in microfinance and other institutions to help eliminate poverty and strengthen communities by funding small and micro businesses, affordable housing, and sustainable agriculture, in both developing countries and the US; to provide private investors with effective, reliable avenues to devote a portion of their resources to these social investments; and to actively collaborate with others with shared values and approaches to create innovative and socially responsible solutions. Our investments include equity and equity-equivalent instruments and debt.
Investment Overview:
(None)

Investment Example

ODEF Financiera, a leading Honduran microfinance institution, was founded in 1985 as a private development organization engaged in activities promoting social development of women in rural areas. The mission of ODEF, which stands for “Women’s Business Development Organization” in Spanish, is to provide financial services to low-income sectors to help combat the causes of poverty. ODEF provides loans, savings, insurance, remittances and bill payment services, as well as training on sustainable agriculture, and business and enterprise development. Other offerings include a loan program for Afro-Caribbean Garifuna women affected by HIV/AIDS, and loans to serve rural populations living in extreme poverty in Lempira. The Prospero Microfinanzas Fund, co-managed by Grassroots Capital Management PBC (Grassroots) and Bolivian Investment Management Ltd (BIM), is ODEF’s first and only foreign shareholder.

Leadership and Team

Cumulative Leadership Experience in Impact Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
30 years or more
Paul DiLeo – Founder and Managing Partner More Info

Paul DiLeo has pioneered the mobilization of private capital for microfinance, helping shape the sector as an investable opportunity. With over two decades of experience in development finance and 15 years' experience in the microfinance sector, he has cultivated a wealth of knowledge in the industry and is respected as a thought leader. Paul launched and managed the Gray Ghost Microfinance Fund, the first US private, for-profit microfinance fund established to demonstrate the viability of microfinance investment. He was also instrumental in setting up a U.S. government-backed Russian investment fund, made equity investments in leading microfinance institutions in India and Bangladesh, and worked extensively in advising and evaluating microfinance institutions and small business banks around the world. Paul started his career in international finance with the U.S. Treasury and Federal Reserve Bank of New York.

S Viswanatha Prasad – Senior Advisor More Info

Prasad is the founder of Caspian Advisers and co-founder of the Bellwether Microfinance Fund. Prasad has over 20 years of experience in the mainstream financial sector, of which the last 8 years have been spent in microfinance. Prior to founding Caspian and launching Bellwether, Prasad held the positions of CFO, COO and eventually CEO of Bhartiya SamruddhiFinance Limited, the flagship company in the BASIX group, one of the largest microfinance networks in India. BASIX was the first microfinance institution in India to raise external equity, as well as the first in Asia to securitize its microfinance portfolio.

Louise Moretto – Managing Director of Investments More Info

Louise has over 20 years of experience in banking, social investing, and international development. She has worked globally in more than 20 countries to secure funding for microfinance institutions and social enterprises and to deliver capital markets and risk management capacity building. At GCM, Louise serves as the Managing Director of Investments.

Anna Kanze – Investment and Social Performance Manager More Info

Anna Kanze leads Grassroots’ investment monitoring and reporting, industry research, and social performance measurement functions, in collaboration with colleagues based in India, Southeast Asia and Latin America. In this capacity, she performs due diligence on potential partners, evaluates debt and equity investment proposals, and has been active in the co-creation of regional funds. Since joining Grassroots in 2008, Anna has been instrumental in developing and executing Grassroots’ investment management processes, including the valuation of equity investments.

Financial Performance

Target Financial Returns Relative to Benchmark:
Near-market Rates
Actual Performance of Impact Products/Funds Relative to Target Financial Returns in the Past Three Years:
In line with initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
100%
Primary Impact Outcomes:
Alleviating poverty
Creating jobs
Increasing access to financial services
Providing housing
Value-added Services Offered:
Access to markets
Other: Capital raising; Social performance management; Asset & Liability Management; Risk Management

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:
Our funds invest in companies that have a social commitment to improve the lives of their clients and the communities in which they operate. Potential investees are only considered if they have a demonstrated focus on serving under-served or excluded customers and/or communities. Confirming that commitment is a key component of due diligence.

Investments systematically include social and environmental sustainability practices in the due diligence process:
Our funds only invest in companies that engage in and promote transparent and ethical business practices appropriate to their specific sector. During due diligence we review whether the firm has a Code of Ethics and if it is implemented, treatment of employees, including diversity of staff, management and the Board, and other social practices. We also use GIIRS as a tool during due diligence, which includes analysis of intrafirm social/ environmental sustainability practices.

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Impact Verified by an Independent Third-Party:
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes - on regular basis (annual or quarterly)
Third Party Validations:
Member of Impact Capital Managers
Impact Frontiers Cohort Participant
Implement recommendations from Task Force on Climate Related-Financial Disclosure
Net Zero Assets Managers Initiative
Utilizes standardized impact metrics (e.g. IRIS+, GIIRS, etc.)
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing

Learn More

Key Contact Name: Anna Kanze
Phone: (718) 488-8210
Mailing Address:
PO Box 70
Plainfield, MA  01070 
USA

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