We make investments on behalf of and alongside our investors, predominantly retirement funds.
As responsible stewards, we strive to provide investment solutions that create sustainable value for our investors, the companies we invest in and the communities they serve whilst protecting the planet.
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We define "sustainable value creation" as investing in companies that create long-term value by acting on both opportunities and risks associated with economic, environmental, and social developments.
Our Impact & ESG investment process
In line with our vision statement of "creating significant social and economic transformation of our African society through innovative solutions that deliver sustainable value for all stakeholders", our investment philosophy embodies the following overarching principles:
IMPACT & ESG
Impact is measured by tangible outcomes
As impact investors, we direct all of our investors' capital towards opportunities in companies and infrastructure projects that contribute to achieving the United Nations Sustainable Development Goals.
Our commitment to the 2X Challenge ensures that all applicable investments align with at least one of the five diversity and inclusion criteria.
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Furthermore, as a member of the Global Impact Investing Network ("GIIN"), we use the Impact Reporting and Investment Standards ("IRIS+") to set impact targets and strategic objectives for each fund. We evaluate each opportunity using the Impact Management Project ("IMP") framework, analysing Who, What, How Much, Contribution, and Risk. Our ongoing impact reporting adheres to the IRIS+, Harmonised Indicators for Private Sector Operations (HIPSO), and Joint Impact Indicator (JII) standards whenever possible.
As a signatory to the Operating Principle for Impact Management ("OPIM"), Summit incorporates the Impact Principles and related frameworks into the design and implementation of our impact management system. This approach ensures that we fully integrate ESG and Impact considerations throughout our investment lifecycle.
Our OPIM Disclosure Statement provides a comprehensive overview of our Responsible Investment policy and framework to ensure we and our portfolio companies deliver on ESG and Impact objectives aligned to the United Nations Development Goals.
Our Impact Framework Partners
We set impact objectives and targets for each fund by combining the following complementary frameworks with in-country development plans such as the South African National Development Plan 2030.
IMPACT FRAMEWORKS
ESG FRAMEWORKS
How we approach impact & ESG
Our approach to Impact and ESG management acknowledges the inherent interrelation between the two practices, while also recognising their distinct differences in terms of goals, investment management procedures, and intended outcomes.
Through our investments, we will look to create new permanent jobs and temporary jobs for mostly previously disadvantaged persons. Job creation within partnership companies is measured using HIPSOs Joint Impact Indicators and in-country frameworks like South Africa's Jobs Fund. Job creation is monitored across demographics and management levels and is typically independently audited annually.
Each fund's impact targets vary depending on the investment sector selection. The potential for community upliftment within partnership companies is determined during a pre-acquisition impact and ESG desktop evaluation. The evaluation is based on IMP's five dimensions of impact (Who, What, How Much, Contribution, Risk) and is measured using IRIS+.
Each fund will set transformation targets typically aligned with each country's in-country objectives, such as South Africa's BBEEE Codes. Being aligned with the 2X CHALLENGE, each fund will look to enable the inclusion & development of women in the workplace. Transformation, diversity and inclusion targets are jointly and upfront agreed upon with the portfolio company, including aspects of black and black women; equity ownership, board, senior management and staff representation and skills development expenditure on previously disadvantaged employees. These targets are monitored and reported quarterly.
Our Investment themes
Each fund's overarching objective is to deliver risk-adjusted financial returns and tangible social returns.
Our investment framework, built on the Theory of Change principles, sets out a fund's long-term impact themes and targets. Fund investment focus and sector selection are structured around one or more of our three core impact themes. Specific impact strategic goals and targets are based on the target countries' national goals and where these are aligned with the Impact Reporting and Investment Standards (IRIS+) strategic objectives.
How we integrate Impact & ESG through the investment cycle
Organisation & Screening
IMPACT
ESG
Pre-screening includes evaluating if the potential investment is aligned with the Fund's Impact Targets and objectives. In addition, Summit assesses if its investment will contribute to delivering additional Impact.
Upfront and before commencing full due diligence, each investment is pre-screened against excluded activities, which can result in adverse social and environmental outcomes, and therefore deemed off-limits.
Impactful Partnerships
The 2023 report presents our ESG and impact management frameworks, highlighting our dedication to gender equality, transformation, and climate change initiatives. We remain committed to achieving excellence in delivering both financial returns and social impact.
We have made significant progress in our impact objectives across healthcare, education, and financial services. Key achievements include the expansion of Crestcare Zoutpansberg, increasing its capacity to 92 beds and enhancing specialist services, now able to treat nearly 10,000 patients annually. In education, Newbridge Graduate Institute grew its student body from 1,605 to 2,255, with R24 million in bursaries helping 500 disadvantaged individuals. Custom Capital Finance supported over 2,583 SMMEs with rental finance and invoice discounting solutions, fostering business growth. Life Path Health opened the 36-bed St Catherine mental health hospital, addressing the mental health bed shortage in South Africa. The sale of Boutique Collection Investments marked our first partial exit, providing substantial returns to investors.
Summit Africa was named Best ESG Fund of the Year at the SuperReturns Africa GP Awards. Looking ahead, we anticipate opening the Crestcare Malmesbury Hospital and new NGI campuses, alongside key investments in healthcare, education, and ICT.
29 March 2024
Published
Be the Change You Want to See
This report presents a comprehensive overview of Summit Africa's investment strategy, showcasing significant milestones and achievements across various sectors such as healthcare, education, and financial services. A notable highlight is the Fund's first investment in a tertiary education institution, NewBridge, which aims to expand access to quality education for previously disadvantaged individuals. The report delves into the robust ESG and impact management frameworks that guide Summit Africa's investments, highlighting detailed case studies and data from portfolio companies. It underscores the firm's commitment to gender equality and transformation, outlining specific targets and initiatives. Additionally, it offers insights into future investment plans and ongoing projects, reaffirming Summit Africa's dedication to continuous improvement in delivering both financial returns and social impact.
30 March 2023
Published
Investing for Growth with Impact
The 2021 Impact, ESG, and Sustainability Report provides a comprehensive overview of Summit Private Equity Fund's strategic investments and their impact on South Africa's healthcare, education, and financial services sectors. It details key milestones, including major investments and expansions in portfolio companies, and highlights Summit's alignment with global ESG frameworks. The report outlines three primary impact themes: job creation, community upliftment, and transformation through diversity and inclusion. Specific case studies of portfolio companies showcase how these investments contribute to sustainable development goals and drive meaningful social and economic change.
31 March 2022
Published
Monitoring & reporting
Our Investment, Value Add, ESG and Impact teams consistently engage with each portfolio company to assist with achieving the targeted financial returns and social impact objectives. Quarterly data is collected across our three impact themes and ESG aspects and reported to our investors. This data is aligned to the IRIS+, HISPO (and JII), SASB, and data categories where possible.
Current fund impact & investment themes
SECTOR FOCUS
FUND
Private Equity Fund I
Private Equity Fund II
Launching in Q4 2023
Social Infrastructure Fund I
Financial inclusion, access to affordable healthcare, and access to affordable education
Enabling access to affordable healthcare and access to affordable education
How we integrate Impact & ESG through the investment cycle
IMPACT
ESG
Pre-screening includes evaluating if the potential investment is aligned with the Fund's Impact Targets and objectives. In addition, Summit assesses if its investment will contribute to delivering additional Impact.
Upfront and before commencing full due diligence, each investment is pre-screened against excluded activities, which can result in adverse social and environmental outcomes, and therefore deemed off-limits.
Organisation & Screening
Organisation & Screening
Appraisal & Due Diligence
Investment Committee Approval
Contracting
Value Addition
Monitoring & Reporting
Exit
