Ximena escobar


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Measuring the impact of investments remains a main challenge for sustainable finance professionals and, together with Climate Change, an overarching theme at TBLI. Sixteen related workshops offer debate on ESG and Impact Investing trends, private equity, portfolio strategy, food production, emerging markets, sustainable energy or philanthropy investing.

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Ximena escobar

  1. 1. 1 A Global Private Equity Firm Bamboo Finance is a private equity investor specializing in business models that benefit low-income communities in emerging markets. • Impact and Microfinance investment pioneers • Management team with track record • Diversified portfolio by geography and stage • Demonstrated attractive fund returns • Offices in Geneva, Luxembourg, Singapore, Bogota and Nairobi. Confidential 11/22/2013 $250M Private Equity 46 Investments 30 Countries 4 Regional Hubs
  2. 2. 2 Bamboo Finance Model Our Vision Demonstrate that private capital can be profitably deployed as a tool for effective social and environmental change. Our Mission Deliver attractive financial and social returns to our investors by investing in companies improving livelihood or providing access to essential services for low-income communities in emerging markets. Our Strategy • Invest in companies that reach low-income markets profitably • Focus on quality and affordable essential services such as healthcare, education, housing, financial services and renewable energy • Fund innovative distribution and financing models • Develop ecosystems of supply chain and support services • Expand and strengthen local economies, communities and businesses • Integrate impact measurement alongside financial performance from the beginning Confidential 11/22/2013
  3. 3. 3 Bamboo Finance Model: Investment Criteria THE COMPANY PROVIDE AFFORDABLE ESSENTIAL GOODS AND/OR SERVICES TO LOW INCOME COMMUNITIES THE PRODUCT/SERVICE RESULT IN IMPROVEMENTS IN QUALITY OF LIFE AND OR, EFFICIENCIES THAT TRANSLATE INTO INCREASED INCOME OR REDUCED EXPENSES Model Is there a commercially viable business model that can be scaled. Is there an economic value proposition across the supply chain. Confidential 11/22/2013 Management Does the team have the capabilities to execute the business plan Market Is there a market for the products or services and it is large enough to support growth
  4. 4. 4 Bamboo Finance Funds Financial Inclusion Fund $195M The Financial Inclusion Fund invests in a range of microfinance institutions and funds serving the lowest socioeconomic segments in emerging economies. Confidential 11/22/2013 $53M The Oasis Fund invests in commercially viable companies that provide access to housing, healthcare, education, energy, financial services and agriculture.
  5. 5. 5 Portfolio To Date: 46 Investments in 30 Countries CREATION INVESTMENTS BAI TUSHUM XAC BANK (Mongolia) (Kyrgyzstan) CHF (Romania) Luxembourg Geneva & Zurich (Switzerland) CHF (Lebanon) FINAE (Mexico) APOYO INTEGRAL (Mexico) APOYO INTEGRAL (Guatemala) BANCO POPULAR (Honduras) SICSA APOYO INTEGRAL (El Salvador) CFE (Panama) Bogotá (Colombia) BANCO WWB CALI (Colombia) EASL (Ghana) AMfB (Nigeria) EAMF (Cameroon) FASO (Uganda) ORB (India) IMMERSION (Pakistan) GREENLIGHT PLANET HUSK (India) (India) SVASTI (India) AAVISHKAAR ASMITHA (India) VIENOVA (India) JOMA (Vietnam, Laos) VORTEX VAATSALYA BRIDGE (Philippines) (India) (India) CFE (Uganda) Singapore Nairobi KOPO KOPO (Kenya) MIBANCO (Peru) EDPYME NUEVA VISION (Peru) BILLE (Brazil) BANCO FIE (Bolivia) BANCO VISION (Paraguay) FIE GRAN PODER (Argentina) CFE (Tanzania) EFC (Zambia) VIDAGAS (Mozambique) AFRICAP CARECROSS (South Africa) Financial Inclusion Fund I - Current Investments Oasis Fund - Current Investments Confidential 11/22/2013 Office
  6. 6. 6 We Track and Measure Impact SYSTEMS & PROCESSES Financial Inclusion Portfolio Outreach* MONITORING AND MEASUREMENT BEST PRACTICES AND FIELD BUILDING We developed an Impact Management System defining a comprehensive process to identify, measure, monitor and enhance impact in our investments. • We developed and apply a proprietary social performance scorecard, ASPIRE. • We engage with industry initiatives that promote best practices in the field of social performance, such as the UNPRI/PIIF, the SPTF the Smart Campaign and Micro Finance Transparency. Photo Sarah Djari • Confidential 11/22/2013 *As of 9/30/12
  7. 7. 7 We Are A GIIRS Rated Pioneer Fund! Oasis is one of the first funds to receive a rating using this innovative impact measurement system. Confidential 11/22/2013
  8. 8. 8 Track Record of Returns Demonstrated Returns • • • • Equity Growth • Financial Inclusion Fund: Forecasted 17% CAGR for mature companies and 40% for startups and transforming companies • Oasis Fund: Several companies have received increased valuations with more than half demonstrating positive EBITDA and the number is growing Social Performance • GIIRS Pioneer Fund; rated in top quintile • Proprietary social performance management system • Active participation and support of field building and best practices Confidential 11/22/2013 Exit in 2011 delivered 23% IRR Exit in Q2 2013 delivered 25% IRR Exit in Q3 2013 delivering 25% IRR Funds on track to deliver 20% IRR
  9. 9. 9 Aha Moments A network of hospitals providing primary and secondary services at affordable prices in rural India. Provider of PV and solarthermal systems that manufactures and sells systems in rural and semiurban areas in India. Grown from 4 hospitals in 2009 to 17 hospitals in 2013 Built more than 150 branches across 5 states. Serving an average of 400,000 patients a year Established financing tie-ups with nearly 20 local banks. More than 1200 employees More than 50,000 systems sold to date Largest provider of organized healthcare in rural India Confidential 11/22/2013 Over 1 million in unit sales since inception in over 31 countries; providing light and energy to over 5 million people Created a salesforce of more than 2,000 micro-entrepreneur distributors Generated USD 75,000 monthly income for microentrepreneurs 92,000 tons total estimated CO2 offset
  10. 10. 10 Solution: Next Generation Funds Sector is Still in Early Stages of Demonstrating the Model Works; Apply Lessons Learned Work across sectors FINANCIAL INCLUSION $195M 2007 invests in a range of microfinance institutions and funds. FINANCIAL INCLUSION II Target: $200M 2013 OASIS FUND II Target: $100M OASIS FUND I $53M 2007 Invests in growth-stage companies that provide products and services to low-income markets Confidential 11/22/2013 Invests in deposittaking institutions in regulated markets 2014 Invests in growth-stage companies that provide products and services to low-income markets
  11. 11. 11 Lessons Learned • No need to compromise returns for impact when you narrow your investment universe to essential services • Need a strategy and process for measuring and tracking impact built into the investment criteria from the start • Need to define your role in measuring impact as an investor and know limits as well as LP expectations • Attractive returns are possible and required to move more money into the space Confidential 11/22/2013
  12. 12. 12 Challenges Remaining • Clarity between philanthropy, CSR, and investing efforts – they are not all “impact investments” • Recreating the wheel vs. funding existing efforts • Better coordination across the capital curve • Providing social entrepreneurs with cheap philanthropic money and global recognition and prizes without demonstrated profitability will drive up valuations and crowd out private sector Confidential 11/22/2013