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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

AlphaMundi Group

Total Assets Under Management: $50 – 99M
Asset Class: Private Debt - Absolute Return / Notes, Private Equity
Primary UN Sustainable Development Goal: 1 – No Poverty
Clean Technology, Alternative Energy & Climate Change
Sustainable Agriculture
Small/Medium Business Development

Firm Overview

Category: Private Debt - SME Finance (Emerging)

AlphaMundi Group is an investment advisory firm founded in 2007 and dedicated to impact investing. The company is headquartered in Switzerland with offices in Kenya, Colombia, and the United States and has a dual mission to reduce poverty and preserve the environment in developing countries. AlphaMundi seeks to fulfill this mission by investing venture debt, mezzanine, and equity in Small and Medium Enterprises (SMEs) that are applying market-based solutions to the world’s most pressing challenges in the following sectors: sustainable food and agriculture, renewable energy, clean technology, and financial inclusion. The Group is currently investing out of two gender-lens funds and has a 10-year positive track record going into the COVID-19 pandemic. The Firm works closely with its sister organization, AlphaMundi Foundation. The Foundation provides pre- and post-investment technical assistance, supports the impact measurement activities of the group, and manages the gender-lens investing activities of both funds.  

Firm Headquarters: Western Europe
Years of Operation: 10 years or more
Total Assets Under Management:
$50 – 99M
Total Number of Investors: Between 5 – 25
% of Capital from Top 3 Investors: 50% – 99%
Investment Thesis:

The investment thesis of the Fund is to 1) address the SME credit gap by catalyzing private sector investment via a diversified, low-risk fund and direct co-investments, and 2) build evidence that establishes the appeal of private debt instruments to further the sustainable development goals.

Investment Overview:

Our investment thesis is predicated on the increasing purchasing power of low-end consumers and their growing need for basic products and services, delivered through sustainable value chains enhanced by technology. The Fund’s strategy is to identify emerging and established SMEs across sectors in East Africa and Latin America, with annual sales of USD 500K – 10M, and build up fund exposure progressively as they achieve financial impact milestones. The private debt strategy offers 1) attractive risk-adjusted returns with a relatively short duration, low correlation to markets, and low volatility; 2) transformational impact on capital markets, by acting as substitute to absent banking solutions for the working capital needs of sustainable SMEs; and 3) tremendous scale by enabling tens of millions of dollars of debt financing to portfolio companies each year, a key expectation for large-scale private and institutional investors.  

Company Differentiator:
  1. Short-duration private debt offering across sectors and geographies. Many peer funds focus exclusively on financial inclusion;
  2. Strong gender lens. AlphaMundi actively works with pipeline and portfolio companies to integrate gender equity into the DNA of its portfolio companies and provides GenderSmart technical assistance via AlphaMundi Foundation;
  3. Co-investment right of up to 1.5x the fund commitment, managed by AlphaMundi at half the Fund’s fees. This offers investors an opportunity to customize their portfolio, go direct, and enhance returns;
  4. 10 year positive track record through 2019 with over 70M invested in 48 companies via 150 transactions; and
  5. Generating market-level impact by pioneering new products and services, serving new people and places, attracting new market investors, and building market infrastructure. From an impact perspective, AlphaMundi’s companies have served over 2.2m direct client individuals, 89% of whom live in rural areas and half of whom are women.  

Investment Example

Twiga Foods is Kenyan-based company that offers a tech-enabled marketplace for fresh produce and a range of processed foods. The company works with small and medium-sized farmers to provide small vendors operating in the informal market in Nairobi access to better quality food at a lower cost. The company started operations in 2014, experienced exponential growth, and is now Kenya’s largest distributor of fresh produce servicing 4,824 vendors on a weekly basis. By aggregating retail demand, Twiga creates a volume market for more efficiently produced domestic fruits and vegetables. SAIF-Bastion made its initial investment in Twiga in early 2016 with a small loan and has since scaled up exposure through a combination of debt, convertible loans, and equity. AlphaMundi has also catalyzed over USD 3m of co-investments for the company. The AlphaMundi Foundation is also currently providing GenderSmart technical assistance to the company with the support of Value for Women.

Leadership and Team

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

Tim is the Founder of and Managing Partner of AlphaMundi Group since 2008, and based in Geneva, Switzerland. He is also Chairman of the Board of AlphaMundi’s SocialAlpha Investment Fund (SAIF) in Luxembourg, the Treasurer of AlphaMundi Foundation in Washington DC, and Chairman of the Investment Committee of the AlphaJiri Fund in Mauritius. Tim previously worked at UBS Wealth Management where he became a founding member of UBS Philanthropy Services for UHNWI clients. He also spent time in Bolivia, assessing microfinance programs on behalf of the Swiss Development Agency, and with WWF International as an advisor on major donors. Tim holds a Degree in Political Science from the University of Geneva and a Private Banking Diploma from UBS, and is fluent in French, English and Spanish.

Lisa Willems – Managing Director More Info

Lisa Willems is a Managing Director at AlphaMundi and based Washington DC. She joined the company in 2013 as Director for African Investments. Following a move from Switzerland to the US in 2015, she started and currently manages the Group’s US operations. She created and presides the AlphaMundi Foundation in 2016 in Washington DC, and secured the initial funding from USAID. She also sits on the Investment Committee for SAIF-Bastion. Beyond her AlphaMundi activities, Lisa sits on the investment committee of Illumen Capital, a private equity impact fund-of-funds launched in 2018, and she teaches impact investing as an adjunct professor at American University.

Marlene Hormes – Managing Director More Info

Marlene (Carvajal) Hormes, CFA, is a Managing Director at AlphaMundi based in Nairobi, Kenya. Marlene is an investment professional with 20 years of experience who joined us from DEG, Europe’s largest development finance institution, where as Vice President she led teams of professionals throughout the various stages of investing - from sourcing deals to due diligence, structuring and legal documentation to asset management - for a multi-sector private-equity and mezzanine portfolio totaling USD 180M. She held additional roles at DEG in the areas of debt restructuring, infrastructure investments, and impact investment targeting early-stage social enterprises. Her regional experience spans both Africa and Latin America.

Percentage of Investment Professionals who identify as women:
50% or more
Percentage of Investment Professionals who identify as a person of color:*
50% or more
Percentage of Senior Management Team who identify as women:
50% or more
Percentage of Senior Management Team who identify as a person of color:*
25% to less than 50%
*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
Creating jobs
Increasing access to financial services
Addressing Gender Inequality
Secondary Impact Outcomes:
Conserving land, ecosystems and natural resources
Increasing access to education and improving educational outcomes
Increasing access to healthcare services and improving health
Increasing access to water and sanitation
Providing housing
Value-added Services Offered:
Business and legal training
Other: GenderSmart Technical Assistance and training

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

AlphaMundi is legally bound by our offering documents to invest exclusively in social ventures that have a clear impact mission integral to their business model. While the SocialAlpha Fund invests across sectors, we focus on sustainable food and agriculture, renewable energy, and financial inclusion. We seek investments that further the SDGs and have the potential to scale nationally and internationally delivering positive social and financial returns. We also integrate a gender lens in all of our investments and seek to eliminate gender biases and promote gender equity in the DNA of all of our companies. All pipeline and portfolio companies must complete our gender diagnostic prior to an investment and must commit to receiving support on gender issues from AlphaMundi Foundation.  

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

AlphaMundi has adopted a firm-wide social and environmental policy that all portfolio companies are expected to adhere to. This policy is aligned with the IFC Environmental and Social Standards and can be furnished up request. While this policy serves as more of a negative screen, investment officers proactively assess portfolio companies social and environmental sustainability practices as a part of ongoing diligence and ongoing monitoring. These assessments are included in investment memos and updated at least annually during our audit process. Also, as a signatory of the IFC Operating Principles for Impact Management, we have provided more details about our impact measurement and management practices that can be found in our public disclosure statement on our website.  

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to the public
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: Lisa Willems
Phone: +12629605145
Mailing Address:

17 Avenue du Bouchet, 1209 Geneva Switzerland

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