Impact

Inclusive, Sustainable Economic Growth Targeting SMEs

We believe that the best way to reduce poverty is through sustained economic growth and that private capital, when invested well, does good. Our mission is to support local, responsible and inclusive economic growth by delivering well-structured financing options that help underserved small businesses thrive. We seek to generate long-term competitive financial returns for investors and measurable positive social impact in local communities around the world.

Advance Global Capital’s (AGC’s) four major impact goals are financial inclusion, SME job creation and revenue growth, strong financial ecosystems, and more economic opportunities for women. Environmental, social and governance (ESG) considerations are integrated throughout our investment process to generate measurable positive impact and reduce risk.

We promote our impact objectives by delivering flexible capital to small and medium businesses (SMEs) in underserved markets and work providing tailored financing to local partners. We target regions where we can have a lasting impact because the SME community is underserved by financial services and shows potential for growth. By working with local partners to establish rigorous lending practices and offering competitively priced funding we develop local capacity, stronger financial ecosystems and lasting financial inclusion.

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Big Impact Financing Small Businesses

The smaller a business, the less power and fewer options it has, and the more vulnerable it is to external forces, such as climate change or a bank’s willingness to lend. Our strategy is accessible to smallest businesses with the least access to less ability to access bank financing—such as women and other minority-owned companies. Our specialists provide tailored financing to our partners who then deliver flexible, transparent, inclusive working capital to SMEs.

Why we target SMEs:

AGC-social-impact-stats-Dec2019

[1] MSME Financing Gap. International Finance Corporation, 2017 (and updated in 2018/2019) https://www.smefinanceforum.org/data-sites/msme-finance-gap.
[2] World Bank Group. Jobs and Development. April 2019. https://www.worldbank.org/en/topic/jobsanddevelopment/overview
[3] Navigating Uncertainty: PwC’s Annual Global Working Capital Study 2018/19. Days Payable Outstanding was 67.7 in 2017. https://pwc.com/gx/en/working-capital-management-services/assets/pwc-working-capital-survey-2018-2019.pdf

Measuring Impact

We are committed to rigorous qualitative and quantitative measurement of the size and quality our funding has in the communities in which we operate.

16,403 SMEs financed

777,244 SME invoices financed

 

Almost 40% of SMEs financed are women-led (defined as >49% owners and/or managers that are women)[4]

Gender-based approaches are integrated throughout the lifecycle of our investment process – from the choice of the underlying financial instrument, which does not require collateral, to the way we recruit and mentor our own team, to how we source deals and promote and engage with our partners around the globe about the potential of investing in women. We lead by example with our partners – and actively promote inclusive business practices to ensure continuity of businesses led by women – and other underserved groups. Details on how we operationalize a gender-lens approach in our investment process are included in our Environmental, Social, Governance, and Impact (ESGI) Policy.

Impact Results to Date
[4] Based on AGC annual survey conducted in the first half of 2020. Compares to IFC estimate of 30% of businesses in developing countries that are owned by women.

Alignment to Global Sustainability Standards

We measure key social metrics as defined by Impact Reporting and Investment Standards (IRIS) with a particular focus on job growth and financial inclusion for women. Our investment process takes an integrated approach to achieving our ESG objectives including the avoidance of fossil fuels and compliance with International Finance Corporation’s Exclusion List. We are closely aligned with United Nations Sustainability Goals 5, 8, 9 and 10, are members of the Global Impact Investing Network (GIIN), signatories to the UN’s Principles for Responsible Investing (PRI) and a member of the Impact Management Project Practitioner Community.

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IA 50

Advance Global Capital has been selected for the IA 50 list for three years running. This is the first publicly available database that provides a gateway into the world of impact investing for investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore the landscape of potential investment options.

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PRI

Advance Global Capital is proud to be a signatory of the UN-supported Principles for Responsible Investment (PRI). The PRI is a global network of over 3,000 asset managers, asset owners and service providers working together to develop a more sustainable global financial system. Our commitment to the Principles reflects our intention to align our ESG reporting with leading industry standards, demonstrating third-party verification of our fund.

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GIIN

Advance Global Capital, Ltd. (AGC) is a member of the Global Impact Investing Network (GIIN). Our membership signifies a commitment to deepening our engagement in the impact investing industry.

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IMP

Advance Global Capital is pleased to be recognised as part of the IMP’s Practitioner Community. The IMP provides a forum for building global consensus on how to measure, manage and report impacts on sustainability. The community consists of around 2,000 members, with every member committed to demonstrating IMP norms.