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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 2021 PROFILE

African Frontier Capital
(Mauritius) LLC

Total Assets Under Management: $50 – 99M
Asset Class: Private Debt - Absolute Return / Notes
Primary UN Sustainable Development Goal: 7 – Affordable & Clean Energy
Clean Technology, Alternative Energy & Climate Change
Small/Medium Business Development
Microfinance, low-income financial services & micro-insurance

Firm Overview

Category: Private Debt - Microfinance

We are an impact investment group. We use advances in technology, data analytics and financial innovation to bring financial inclusion to people living off-grid at the bottom of the pyramid in Africa and globally.  We currently provide receivable financing to pay-as-you-go (PAYGO) off-grid solar (OGS) companies. Our financing allows consumers to transition away from kerosene and build equity ownership in modern Solar Home Systems (SHS) with all their accompanying social, environmental and economic benefits. 

Firm Headquarters: Africa
Years of Operation: Less than 3 years
Total Assets Under Management:
$50 – 99M
Total Number of Investors: Less than 5
% of Capital from Top 3 Investors: 100%
Investment Thesis:

We securitize pools of receivables generated by PAYGO OGS companies, allowing institutional investors to invest in well structured, high-impact loan notes with well understood risk profiles.

Investment Overview:

Over 1.8 billion people live without access to reliable and modern electricity. They spend over USD 27 billion a year (!) on dim and dirty energy (kerosene usually) for lighting and mobile phone charging which leaves them stuck in a continuous cycle of poverty. PAYGO OGS companies are starting to make a real difference by offering consumers a way onto the energy ladder. In exchange for small affordable daily mobile money payments (equal roughly to what they would spend otherwise on kerosene) consumers own a SHS which provides them with access to modern LED lighting, phone charging and potentially other products (radio, TV, smart phone, water irrigation, refrigeration etc). Consumers own the SHS; so when the payment plan is complete, consumers have free electricity. These PAYGO OGS companies, however, require material amounts of receivable funding to continue to grow. We provide this funding.

Company Differentiator:

We use modern data technologies and analytics to provide: (i) investors with clear independent daily oversight and risk analysis; and (ii) PAYGO OGS companies with flexible and sustainable local currency financing solutions.

Investment Example

Solar Frontier Capital Limited (SFC), a wholly-owned subsidiary of African Frontier Capital (Mauritius) LLC (AFC), and d.light design Inc. (d.light), a leading global innovator of solar energy products, have jointly announced the establishment of a USD 65 million financing vehicle, Brighter Life Kenya 1 Limited (BLK1). BLK1 is an off-balance sheet financing vehicle, dedicated to acquiring PAYGO SHS accounts receivables from d.light’s Kenyan subsidiary to provide the company with flexible, working capital to finance its continued growth. BLK1 is expected to finance the provision of improved energy access to 1.2 million people in Kenya. BLK1 provides d.light with local currency financing over a two year commitment period and is intended as the first in a series of vehicles designed to provide d.light with continuing access to sustainable and affordable local currency receivable financing. 

Leadership and Team

Cumulative Leadership Experience in Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
3 – 9 years
Eric De Moudt – CEO More Info

Eric founded African Frontier Capital in 2010. He has 20 years private equity and investment banking experience gained on Wall Street (Barrington Capital), London (Citigroup Investment Banking) and in sub Saharan Africa. He has advised and structured billions of dollar of structured finance and cross border M&A transactions, IPOs, LBOs and Real Estate transactions. Before founding African Frontier Capital, Eric was at PME African Infrastructure Opportunities fund where he led the fund’s efforts in Energy, Real Estate, ICT, Aviation and Water transactions. Eric has been investing in high impact sub Saharan African markets since 2007 as a principal and has overseen the deployment of over USD 150 million of capital in numerous sectors throughout sub Saharan Africa. Eric has an MBA from London Business School, UK.

Percentage of Investment Professionals who identify as women:
Less than 25%
Percentage of Investment Professionals who identify as a person of color:*
50% or more
Percentage of Senior Management Team who identify as women:
Less than 25%
Percentage of Senior Management Team who identify as a person of color:*
50% or more
*People of color include: Black, Latinx, Asian, Native American/Alaskan Native, Pacific Islander, Middle Easterm and multi-racial Americans

Financial Performance

Target Financial Returns Relative to Benchmark:
Market Rates
Actual Performance 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:
Addressing climate change and environmental issues
Alleviating poverty
Increasing access to financial services
Secondary Impact Outcomes:
Alleviating poverty
Creating jobs
Increasing access to education and improving educational outcomes
Addressing Gender Inequality
Value-added Services Offered:
Access to markets

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:

We only invest in PAYGO OGS companies and specifically do due diligence on expected impact outcomes including (but not limited to) social and environmental impacts.

Investments systematically include social and environmental sustainability practices in the due diligence process:

As part of our due diligence we look at investee company's internal corporate ESG policies. This is important to our investors and to us. 

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to investors and donors
Third Party Validations:
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: Eric De Moudt
Phone: +44 (0) 207 129 1422
Mailing Address:

33 St. James's Square, London SW1Y 4JS UK

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