Performance
SpringHill’s fund targets both financial returns and social benefit:
- Annualized financial returns of 10-20% with limited correlation to global equity or fixed income markets
- Measurable social benefit equivalent to 6-12 times the value invested
Financial Returns
We aim to maximize financial returns by understanding and sourcing local opportunities and providing liquidity where it is lacking rather than taking incremental credit or market risk.
We will manage risk by:
- Targeting companies with a proven business model and significant growth opportunities
- Providing local and international support for management to execute the growth plan
- Diversifying investments across countries in the region
- Investing only where we can add value beyond the financial capital invested
We will structure our equity and quasi-equity interests to protect decision rights and we will seek to agree exit terms and conditions prior to making the investment.
Social Returns
SpringHill will proactively screen for investment opportunities that generate significant measurable social impact by providing needed goods and services for the poor, creating jobs, augmenting wages and the tax base. These are the “returns” that accrue to customers, workers, suppliers and their communities as a result of the investment.
These returns are no less important than the returns that accrue to investors of financial capital. So, while it is not always easy to measure and quantify social impact, we are committed to tracking, measuring and reporting what is directly attributable to the investment.
A recent empirical study – From Poverty to Prosperity — establishes a relevant benchmark for economic value created by investing in SMEs in the developing world: 6 to 12 times the value of the investment made. We will track and report our performance vs. this benchmark.