Investment

Strategy

There are three investment strategies that WUPIV have established to fill the funding gap in the financing ecosystem in the water, sanitation and plastics recycling sectors.

1. Advancing early-stage successes:

Many early-stage SMEs in the water, sanitation and plastics recycling sector are recipients of concessionary financing from aid agencies and charitable foundations in small amounts, typically aggregating to amounts of US$1 million or less.  DFIs and commercial banks are prepared to fund larger investment requirements, often in excess of US$20 million. 

SMEs that have proven successful in their abilities to repay smaller obligations, but are unable to service large loans, have traditionally been unable to find financing to match their needs.  These SMEs typically have business strategies that, with appropriate use of funds would fit that ‘missing middle,’ will ultimately allow them to access DFI and commercial bank funds.

WUPIV will, either acting independently or in conjunction with other sources of finance, lend to those SMEs that fit the following criteria:

  • Demonstrated success in servicing debt from charitable foundations, aid agencies, or other sources of concessionary capital.

  • Strong corporate governance with experienced senior management.

  • Presence of well-articulated business plan and financial strategy that explain the progression of financing needs and aspiration to access larger tranches of money.

  • Ability to measure the impact of investment in one of WUPIV’s core focus areas.

WUPIV will provide some technical assistance to investees throughout the period of investment in order to assist them to reach larger tranches of money post-WUPIV’s investment.

2. Bridging the gap for performance-based results / output-based aid:

Aid agencies and charitable foundations are increasingly emphasising the need to compensate their partners upon demonstration of results (at the end of a program) rather than to provide the needed funding at the outset.

Programs often do not meet their goals due to insufficient capitalisation from the beginning, and the service providers themselves are often frustrated and discouraged in their efforts to cater to the needs of some of the most vulnerable populations. 

To combat this challenge, WUPIV will provide short-term bridge financing to service providers that fit the following criteria:

  • Participation in a program with payment based on output / performance.

  • Third-party verification of use of funds and tracking towards output / performance goals.

  • At least three years’ worth of experience in their respective field.

  • Strong corporate governance with experienced senior management.

  • Endorsement from the aid agency or charitable foundation.

3. Supporting private providers on PPPs:

Public-private Partnerships (“PPPs”) are increasingly popular in meeting service delivery needs in the water, sanitation and plastics recycling sectors.  However, some of the most competitive private providers do not have access to risk-tolerant capital, particularly with sufficiently long tenor to match multi-decade concessions, needed to achieve success and social impact.

As part of the solution, WUPIV will provide long-term finance to private-sector participants in PPPs that:

  • Demonstrate financial viability over a long period of time.

  • Show that the concession area includes some of the most vulnerable communities in a particular jurisdiction and allows for cross-subsidisation.

  • Are located in countries with favourable approaches to PPPs.

  • Offer examples of success sufficient to encourage replication in developing countries.

WUPIV is actively seeking investees who are working in one of the impact areas of interest that also fit into one of the three investment strategies. If you feel you meet the criteria of one of these categories and are actively furthering SDG 6, 12 or 14, please contact us.

Impact Created

WUPIV is targeting investments that contribute towards Sustainable Development Goals (SDGs):

Impact generated through investment will be measured and reported, in line with international best practices. 

If you are interested in being a potential co-investor or wish to refer an investee to us, please contact us.

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 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.

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