Insights

Webinar: The Emergence of Impact Investment Debt Funds

This webinar, the third in a series brought to you by ClearlySo, Octopus Investments and Paul Hastings, opens up discussions on specific debt fund vehicles and how they are being structured and utilised to address differing market circumstances.

July 6, 2020

The Emergence of Impact Investment Debt Funds

Impact investing, as we know it today, has seen an abundance of funds emerge over the past 20 years. After two decades, they are now approaching 1% of globally managed assets. In the UK in particular, many of the funds have been largely equity-oriented, owing to the growth attributes of the underlying investees. More recently, we are seeing a plethora of debt funds, with an impact approach, coming to the market.

Impact investment debt funds address a different variety of needs, both with regard to investors and investees. Furthermore, these funds have been very different in nature and often allow for greater use of tranching than we have seen in the equity funds. These debt funds often have been of greater use in developing markets, where exits for equity investors are more uncertain. Furthermore, debt funds have been dominant ion the area of micro finance, which is one of the most developed impact investment markets.

The panel will discuss specific debt fund vehicles and how they are being structured and utilised to address differing market circumstances.

 

Speaker Profiles

Diala Minott is a private funds lawyer in the credit funds practice in the London office of Paul Hastings. She advises on a wide range of fund-related work including private equity, private debt, real estate, mezzanine, venture, credit, infrastructure, funds of funds, distressed and special situations, and activist funds, as well as on the structuring of carried interest, co-investment and other incentive schemes, secondary transactions, and fund restructurings.

Andi Phillips is a Co-founder and Managing Partner at Maycomb Capital, a new impact investing platform. At Maycomb Capital, Phillips leads one of the firm’s two flagship funds, the Community Outcomes Fund, which is the largest outcomes financing fund in the United States. Phillips has over 25 years of experience leading, designing and implementing large scale, public private partnerships that leverage private investment to address pressing social challenges. Phillips has been the principal investment professional, leading the investment for four of the first eight outcomes financing transactions in the U.S. market, including transactions that financed early childhood education in Utah and Chicago.

Rod Schwartz is CEO and Founder of ClearlySo, with a background in equity research, management, investment banking and venture capital. Joining Wall Street in 1980, he rose to become the number one ranked financial services analyst at PaineWebber and then held senior management posts at Lehman Brothers and Paribas, before leaving the sector in 1997 to found the fintech-oriented VC firm Catalyst. A pioneer in the impact investment marketplace, he transformed Catalyst into a social business consultancy, which in 2008 morphed into ClearlySo, a business designed, “to help create 100 Justgivings”. This seemed an exciting new style of company, which achieves significant impact as well as great financial returns.

Alex has 22+ years EM debt origination & structuring experience. His previous roles and experience include Co-Founder at Helios Credit Partners LLP, Managing Director at Merrill Lynch & Goldman Sachs, Head of EM Debt Origination, LLM, Harvard Law School, and LLB, University of London. Alex Grew up in Ghana, Botswana, Pakistan, India and Turkey.

Most recently, he co-founded an Africa and Emerging Asia focused private credit impact fund, which is a “Finance First” impact credit fund. The impact is focused on sustainable development criteria/select UN SDGs, with direct origination of US$15-50m transaction sizes, from senior debt to mezzanine. The impact fund is sector agnostic, US$ secured loans, impact and ESG monitoring and reporting Sir Paul Collier, Advisor to FCP