Stay up to date with Wellers Impact - June Newsletter - 2021
23rd June 2021
Here at Wellers Impact, we are part of the solution to build back better, following the devastating socio-economic impacts of the Covid-19 pandemic.
Wellers Impact is an FCA authorised impact investment specialist, passionate about using fair economics to transform lives and communities whilst generating risk-adjusted, market-rate returns for investors*.
Our main objective is to significantly reduce our partners’ donor dependency - and supporting them to professionalise. We meet and push the boundaries of our vision by continuously deploying innovative solutions for our ethical partners enabling transformative community impact and creating local jobs.
2020 and 2021 have so far been a formidable period for Wellers Impact - we are excited to share our journey and insight into how you can be part of it going forward.
Our key milestones include:
Water Unite Impact:
Wellers Impact is proud of the partnership developed with Water Unite to create Water Unite Impact, which has been structured using an innovative financial model.
Partnered retailers, such as the Co-operative in the UK, are taking a higher risk-reward position by providing seed funding through micro-levy contributions of one pence/cent per litre of bottled water sold in their stores. These contributions act as a credit enhancement mechanism to leverage Senior Capital from investors keen to invest in the growing sectors of water, sanitation and plastics reduction. The aim is to build long-term financial sustainability of our chosen SME investees and to generate social/environmental impact multiple times over.
We are delighted that retailers are showing such enthusiasm, demonstrating their social and environmental leadership, and joining our virtual convening at the UN last year; the numbers are continuing to grow, and we are pleased to announce a unique initiative with researchers at Kantar to explore the benefits of consumer engagement on environmental and social concerns. Using our seed funding, we have successfully completed our first investment in Sanivation, a Kenyan sanitation developer. You can read more about them here.
Wellers Impact is currently seeking interested further Investor Partners, those who are motivated to earn a financial return, deliver social impact through capital investment, and wish to mobilise private capital in these sectors. In this first stage, we aim to raise and invest significant capital on a for-profit basis to multiply social impact to a scale that cannot be achieved through philanthropic capital alone.
Gearbox Europlacer, a Joint Venture between Kenya’s MachineANI, Europlacer, a leading technology manufacturer and Wellers Impact, has invested in a “High Mix-Low Volume” electronic Printed Circuit Board (PCB) manufacturing plant in Nairobi, Kenya.
The facility aims to maximise value retention for the local economy by keeping the entire value chain of electronic manufacturing, specifically Internet of Things (IoT) devices and much needed medical equipment, within the country and region. A class-leading Surface Mount Technology production line has been successfully installed and commissioned, which will catalyse the burgeoning Kenyan and regional electronic development sector.
Gearbox Europlacer’s business model reinforces the notion that social progress should drive financial success. Once established, Gearbox Europlacer will contribute a percentage of revenue to Gearbox, our not-for-profit sister organisation, to mentor and train more local talent in IT and engineering. This mechanism:
Enhances Gearbox’s path to sustainability. The time and effort that has historically been spent on fundraising can now be used on developing their impact effectiveness and growth.
Retains economic value within the country, which will ultimately have a positive impact on local job creation and on the wider Kenyan GDP.
Wellers Impact is currently seeking additional investors interested in providing risk-tolerant capital to allow the business to be used as a force for good. The early-stage capital will catalyse production for Gearbox Europlacer - forecasted to generate over 100 new jobs at our manufacturing plant and enable the sister not-for-profit organisation, Gearbox, to travel further along the road to self-sustainability.
Real Estate Development with Long-Term Social Outcomes:
Further to the completed US$10 million development of our partnered charity’s land plot, which brought them income just in time to help them weather the effects of the pandemic, we are pleased to announce a further round of real estate projects.
Building on what has been learned from our projects to date, we have been invited to develop up to 50 plots by one of the most prominent NGO private landowners across Kenya. The program has the potential to release up to US$25 million per annum towards education, business training and small loans, healthcare and other community outreach initiatives. This offers investors the opportunity to invest in a wide range of asset-backed impact investments, while achieving strongly on the UN SDG indicators. Developments are approaching the feasibility stage with social housing, clean energy, commercial mixed-use and leisure facilities being considered.
Expansion of the Wellers Impact Team:
We are pleased to announce a significant expansion of the Wellers Impact Team, which now comprises of:
Cyrille Antignac (Portfolio Manager) joined Wellers Impact in 4Q 2020. He brings with him a very strong track record on SME investing in Emerging Markets. He leads due diligence efforts for any potential investments and manages the portfolio for successful investments.
Rheea Bhayani (Analyst) joined Wellers Impact in 2Q 2021 with an aim to onboard Kenyan retailers to Water Unite Impact and to assist the team in daily tasks.
Kuan-Ju (Steven) Chen (Analyst) joined Wellers Impact in Q2 of 2021. He works on the early screening and due diligence of potential investments, in addition to conducting thematic research aligning Wellers Impact’s investments focuses.
Jeremy Gorelick (Origination Lead) joined Wellers Impact in 2Q 2020 with a focus on the origination of a pipeline of projects in line with the delivery of global international development goals, particularly in infrastructure and service delivery to some of the world’s most vulnerable populations
Louis Goring-Morris (Water Unite Lead) joined Wellers Impact in 2Q 2021 on a secondment from Water Unite. His role focuses on working with retail partners to implement the micro-levy scheme and seed funds that come through to the Water Unite Impact Investment Vehicle
Peter Higgs (Chairman) leads the Wellers Team strategically through his role as Chairman of the organisation.
Roopal Kanabar (COO and Investor Relations) joined Wellers Impact in 1Q 2020 and formulated the concept of Water Unite Impact. Since joining, she has spent a lot of her time leveraging previous sales and structuring experience to bring the Water Unite Investment Vehicle to life, as well as raising capital for projects that the organisation is focused on.
Charlotte Macdonald (Communications and Research Analyst) joined Wellers Impact in Q4 of 2020. Her role primarily focuses on communications for Wellers Impact, including maintaining a regular blog series as well as collaborative comms projects with our partners and investees.
Yusuf Merchant (Investment Consultant) joined Wellers Impact in 3Q 2019 to manage the agriculture credit lines facility and develop investable asset-backed deals, notably in the renewable energy space. Yusuf has extensive experience in structuring, originating and managing the risks of the largest cash and derivative deals at MUFG and Lloyds Banking Group.
Sam Njoroge (Investment Analyst) joined Wellers Impact in 2Q 2019 in our Nairobi office, where he performs due diligence of potential investments and assists with day-to-day operational activities.
Guy Ruddle (CIO and co-founder) has oversight over all investments and has been instrumental to the smooth running of the organisation as an FCA regulated entity, given his investment management experience. Guy is an accountant by profession.
Neil Sandy (CEO and co-founder) leads Wellers Impact from strength to strength on a day-to-day basis. Neil holds board positions at several organisations in the UK, US and East Africa as well as over two decades of experience in senior investment, risk and operational roles.
Rupen Shah (Senior Advisor) joined Wellers Impact in 1Q 2021 to provide Technical Assistance. Rupen, ex-FD of Britvic PLC, will provide necessary guidance and support to accelerate the development of leadership teams and boards of SMEs that the organisations invest in.
Peter Spencer (Legal Counsel) works with Wellers Impact’s sister organisation, Wellers Law Group. He advises on a wide range of legal matters including the establishment of and incorporation of charities.
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Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.* Suitable for Professional, Sophisticated and High Net Worth Investors only.
Wellers Impact Limited is a limited company regulated by the Financial Conduct Authority, and registered in England and Wales with Company Number 9857205. Wellers Impact Consulting Limited is a limited company, registered in England and Wales with Company Number 10484085. Our FCA Number is 767086.
Wellers Impact is a UK-based, FCA-Regulated Impact Investment Manager which works to unlock community-focused impact through SDG-focused impact investing. Through innovative investment models that utilise fair economics, Wellers Impact originates investment opportunities across three core business activities; real estate developments in partnership with local land-owning not-for-profits in East Africa, financial support for agriculture firms and supply chains globally through sustainable development finance and direct investment into private water, sanitation and plastics recycling firms globally.