Using the following set of filters, we establish a pipeline of enterprises which can take on impact investment:
- Is commercially viable or has the potential to be so with tailored pre-investment support.
- Demonstrates clear social impact in the context of rural livelihoods and/or benefits women in particular.
- Has the potential to solve constraints in a market system or has emerged through our programmes.
- Has limited access to affordable finance.
- Requires between US$150,000 and US$1.5m in loan or equity finance to grow.
- Is not on the country’s Foreign Direct Investment (FDI) negative list.
- Has leadership in place with the skill and incentive to grow the business.
- Shows continuous improvement in environmental sustainability.
After on-site diagnostics, eligible enterprises receive tailored technical assistance to prepare them for investment. This typically comprises financial management, management structures, sales and marketing, governance, growth strategy, operational plans and, ultimately, a business plan to be presented to investors. Technical assistance is sourced from a blend of business experts and mentors. During or after the finalisation of business plans, enterprises can consult the ACRE syndicate administrator, Challenges Capital, who provides expert advice from an investor perspective.
The syndicate administrator manages the ACRE syndicate of investors, a group of like-minded investors who have signed an agreement to consider investing in ACRE’s pipeline on a deal by deal basis. The syndicate administrator can also make recommendations on further technical assistance provision to strengthen certain aspects of business operations so the chances of accessing finance increase. When business plans are ready, enterprises can pitch to the ACRE syndicate of investors.
Understanding the difficulty of negotiating legal terms, ACRE connects enterprises with pro bono legal advisers who can support the finalisation of the investment deal. ACRE also encourages enterprises to seize any opportunities they may have with investors outside of the ACRE syndicate, using the finalised business plans. ACRE’s aim is to contribute to the investment readiness ecosystem.
Investors interested in getting involved, please see Investor leaflet or contact ACRE directly.