GIIN Releases Case Study on Collaboration to Form the African Agricultural Capital Fund Innovative Fund Governance Includes an Impact Committee
to Evaluate Investments' Potential for Positive Social Impact
 Published today by the Global Impact Investing Network (GIIN), Diverse Perspectives, Shared Objective describes the collaboration that resulted in a USD 25 million impact investment into the African Agricultural Capital Fund. The co-investors—the Bill & Melinda Gates Foundation, the Gatsby Charitable Foundation, J.P. Morgan, and the Rockefeller Foundation—are all members of the GIIN Investors’ Council. The U.S. Agency for International Development (USAID), a GIIN supporter, provided a guarantee for a portion of the fund. The investors, along with the fund manager, Pearl Capital Partners, sought to ensure that the fund would make investments in commercially viable agricultural enterprises with high potential to improve the livelihoods of East African smallholder farmers. They worked together to create a capital structure, designed fund impact governance mechanisms, and incorporated a USAID grant-funded technical assistance facility to support investee enterprises.
The case study provides an overview of the fund, its primary impact governance mechanisms, and the stakeholders’ key risk mitigation strategies. It describes how the diverse stakeholders—a fund manager operating in East Africa, a U.K. foundation, two U.S. foundations, a U.S. government agency, and a global commercial investor—worked together to make an investment that accommodates each of their financial and social objectives. Interviews with representatives of the four investors and the fund manager are included to provide additional insight into the motivations and decisions that shaped the investment. Read the fund launch press release >
The Global Impact Investing Network (GIIN) is a nonprofit organization dedicated to increasing the scale and effectiveness of impact investing. The GIIN builds critical infrastructure and supports activities, education, and research that help accelerate the development of a coherent impact investing industry. |
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