Much is said about impact investment, blended and innovative finance, with many players active in the market.
Yet, even with the demand seen in the COVID-19 pandemic, deal-flow has failed to match expectations.
Health 4 Development understands that unlike traditional private equity and venture capital investors, impact investors are not simply motivated by financial returns, but are driven to measure value delivered for patients’ health and wellbeing outcomes as well as the effects of accessibility and availablility achieved in market dynamics.
That said, impact investors may look for a level of capital preservation or even low rate returns to cover losses across a portfolio. Most investors lack staff resources to source investment opportunities within the “missing middle”. Health 4 Development is accomplished in applying required organisational and operational expertise to those mid-tier SMEs needing modest investment to deliver growth and achieve scale.
4 Characteristics of our target investments
Established but under-developed businesses:
Operating entities with a visible offering, core team and measurable potential, with clarity on conditions limiting their growth and the opportunities for change.
Health 4 Development will provide support and mentoring in developing and delivering growth strategies.
Healthcare commodities and service delivery:
These sectors are core competencies of the Health 4 Development leadership.
They are sectors that deliver significant early returns on growth and real benefits in market dynamics.
Commonalities of our 5 primary target countries (Kenya, Rwanda, South Africa, Uganda and Zambia) in terms of politics, regulation, market condition and geographic concentration combined with range and depth of market experience to justify this focus.
Investment target range:
$250k – $5M
(implied enterprise value of $5M – $50M) – that “missing middle” of SMEs that are so often neglected by more traditional investors.
4 Measurable outcomes
In combining impact with commercial outcomes, we focus on:
Capital value created in the hands of local and national business owners, founders and management.
Transactions are analysed and monitored to measure and understand the inter-relationship of cost vs value created, for the business, for the investors and for the health system to inform indices, archetypes and frameworks for designing and expediting transactions at volume and at suitable cost.
Our Solution-Driven Strategy
Delivering on Value