Partners Group Impact Investments II

Diversified "best of" impact strategy investing across sectors, asset classes and geographies

Overview

PG Impact Investments is the dedicated impact investing arm of Partners Group, a leading private markets investor managing $95bn of assets for over 900 institutional investors.

PG Impact Investments is currently raising the firm’s second fund, a $300m global, relative value impact strategy investing across impact sectors, asset classes and geographies – PG Impact Investments II.

Leveraging the back-office and investment expertise of Partners Group the fund offers investors a broad, diversified exposure to an underlying portfolio of circa. 150-200 assets in high-growth emerging market regions.

The fund will be investing in 20-30 direct (equity and debt) investments and c.10 fund investments and through this strategy the fund seeks a blended target return of 10% net IRR / 1.65x DPI and measurable impact on the lives of underserved people.

The fund’s target size is $300m, with $60m committed at first close and final close scheduled 4Q 2021.

Strategy

Background
The fund’s strategy provides investors exposure to high growth companies in emerging/growth markets, offering an attractive risk/return profile, with low correlation to other asset classes, all whilst improving the lives of underserved people.

Leveraging over 24 years of private markets track record and the global infrastructure of Partners Group results in an Institutional approach to impact and the investment rigor offered by such an experienced investment firm. Teams based in-market ensure leading deal sourcing capability: over 1’700 impact investments sourced to date with an 97.8% decline rate.

More than 1bn people in emerging markets lack access to basic products and services, and 730 million people are entering working age population bringing increased disposable income. These markets see $7tn consumption from emerging consumers, and in 2019 PG Impact Investment investees saw revenue growth of 55% vs 4.8% MSCI emerging market index growth.

The fund seeks exposure to fundamental demand growth, whilst ensuring the delivery of affordable and sustainable products and services.

Seed Portfolio and Pipeline Investments

PG Impact Investments II has closed 5 initial investments; 3 direct debt, 1 direct equity and 1 fund commitment with a combined seed portfolio of $54m. Despite COVID-19 and a challenging environment in emerging markets, the seed portfolio has show strong performance and resilience and is currently at 1.03x gTVPI.

Examples of the fund’s investments:

Goodlife (Direct Equity, $5m)
– Impact sector: Healthcare
– Target beneficiary: Underserved consumers
– Geography: Emerging Markets
Goodlife is a retail pharmacy chain in East Africa focused on increasing access to high quality drugs and health advice for underserved consumers. PG Impact Investments’ investment will help the company expand its convenience store network and increase penetration among low income consumers.

Tugende (Direct Debt, $7m)
– Impact sector: Social – SME Growth and Job Creation
– Target beneficiary: “Base of Pyramid”
– Geography: Emerging Market
Tugende provides lease-to-own financing helping clients in Uganda and Kenya to purchase income-generating assets. The companies core product funds motorbike taxi purchases for drivers who would normally rent the vehicles that they ride. Since 2012, has leased out over $17.0m worth of motorcycles and has created over 7’000 new owners.

Team

  • Urs Baumann

    Co founder & CEO

    – 27yrs experience, co-founded PGII in 2015
    – Prior experience; Bellevue Group, Lindorff Group, Swisscard, McKinsey & Co.

  • Sara Scaramella

    Head of Private Equity

    – 10yrs experience, joined PGII in 2016
    – Prior experience; Partners Group, UBS Chief Investment Office

  • Amy Wang

    Head of Private Debt

    – 13yrs experience, joined PGII in 2016
    – Prior experience; Deutsche Bank, Centinala Capital, Grassroots Business Fund

  • Athos Staub

    Impact & Value Creation

    – 30yrs experience, joined PGII in 2019
    – Prior experience; McKinsey & Co., Swisscard, Aduno Group, Sanacare

Contact

 

Key Facts

Size $300m
Asset Type Multi-asset
Geography Emerging Markets
Impact Multi Sector
Target Return 10% net IRR
Fund Structure Closed-Ended
Fund Term 10 years
First Close €40m
First Close Date 3Q 2020
Final Close Date 4Q 2021
Committed Capital €60m