Our vision on impact investing
Triple I strongly believes that investments in small and medium enterprises can make a social change and play a vital role in achieving sustainable economic development and social impact. In fact, our mission is to fight poverty by empowering entrepreneurs with capital and hands-on business support.
The enterprises we support are demonstrating responsible entrepreneurship and are at the forefront in making sustainable business models successful. We invest in responsible, scalable, for-profit businesses because in the long run sustainable enterprises are more successful, both socially and financially.
We built long-term relationships with local entrepreneurs and support them with tailor-made financial products with a payback time of roughly 6-8 years. Our investments are high-risk due to exchange rate fluctuations, non-transparent local markets, semi-fragile governments, low levels of education etc. The businesses we support often experience fragile growth. However, we are driven to help them grow. Local entrepreneurs are our primary clients, not investors. Therefore, we look for mission-aligned partners and investors who in times of duress, continue to navigate towards our impact ambitions and do not fall back to mainstream financial incentives.
At the same time we aim for 5% return on our investments. But we are realistic and we acknowledge financial returns can be less than market returns as the price of creating social value in high-risk context. We strive to become a large self-sustainable fund that will be able to grow continuously rotating money while multiplying social impact. Accordingly, our fund is open-ended and we re-invest a fixed percentage of our profits and the additional surplus is for our investors in return for their high-risk support of our mission.
We believe that creating impact starts with providing fair products that actually helps entrepreneurs to grow their business. First you need to make a business viable before social impact can never be scaled.
Our approach in a nutshell
- We provide tailor made financial products ranging from debt to equity. We do not want to disturb markets and therefore our returns are market conform and we do not give grant money.
- Our financial products ranges between €10k-€500k with a sweet spot of €250k. Most investors do not provide amounts below €400k because of the marginal costs/return ratio.
- The terms are defined to serve companies best; i.e. cash-flow based grace periods, performance-based interests, longer maturity, in principal no fees. Our commitments are long-term and we want to partner with the companies in order to measure the impact over a longer period of time.
- We drive growth instead of IRR: We consider local entrepreneurs as our key client while most funds strive for market-rate returns and qualify their investors as the client.
- On the long term we strive to become a revolving fund that will be able to grow continuously by rotating money while multiplying social impact.
- Even in hard times , we and our mission-aligned partners continue to navigate towards our impact ambitions and do not fall back to mainstream financial incentives.