Our SPV Model
We are confident that our Special Purpose Vehicle (SPV) approach is appealing to a range of fund managers, development finance institutions, impact investors and philanthropists.
The Health 4 Development SPV will engage and draw from multiple and diverse capital sources, providing a mechanism of blend and flow through to provide situationally appropriate funding to businesses in the “missing middle SME” community.
The Health 4 Development SPV is not a fund.
A SPV structure fits our leadership experience and strengths. We will partner with existing funds, striving to access as broad and diverse a pool of partnerships as is reasonable. We will leverage innovative and impact financing to provide capital and growth support to African private sector entities in order to significantly enhance the resilient supply of healthcare commodities and services on the continent.
Our SPV Model will:
- Provide the simplest and most transparent way to confirm and deploy capital.
- Enable the fastest route to launch.
- Allow us to continue to secure capital as we grow and our portfolio expands.
- Simplify engagement for our investment partners.
Our SPV Model will avoid:
- The investment period and redemption issues of a fund.
- The regulatory issues that would detract from sourcing portfolio companies and delay capital raising and launch.
- The high legal and administrative costs that are associated with a fund.
4 Interventions of our hypothesis
which will significantly impact the speed, scale and success in attracting and deploying capital
01.
Thoroughly investigate, comprehensively detail and put in place the governance, compliance and risk management structures necessary for the SPV to secure, blend and deploy capital to private sector SMEs in the five primary target countries (Ghana, Kenya, Rwanda, South Africa, Zambia).
Establish and operationalise the Health 4 Development Deal Team to support legal and due diligence needs of transactions.
Funding these costs directly avoids the usual practice of burdening these costs into the investee SMEs.
Establish and deploy the Health 4 Development Growth Team to support the investee SMEs in deploying capital for growth in the 4 C’s: Capacity, Catalogue, Channels and Countries.
Funding these costs directly avoids the usual practice of burdening these costs into the investee SMEs.
Customise the governance, compliance and risk management structures to scale to other markets in Sub-Saharan Africa (beyond the five primary target countries) and to extend the capacity of the Health 4 Development Deal Team and Growth Team to match those broadened horizons.
The Health 4 Development SPV model allows us to move faster, to blend instruments for greatest business benefit, to modify investment positions as businesses “graduate” from our blended finance funding to successfully tapping market sources of capital, and to manage risk across a portfolio of investments. It maximises our ability to secure quality deal flow at the target investment size.
Our Solution-Driven Strategy
Strategy
Impact Investment
WHY INVEST
Delivering on Value
WHY US