INVESTMENTS
Social Infrastructure
Invest to create growth with impact where it matters
Our investment approach centers on managing assets and curating social infrastructure opportunities that make a meaningful difference in society.
Our investment formula is simple: growth + impact = extraordinary outcomes. As seasoned specialists in alternative investments, we envision investment growth, societal benefit, and sustainability not as isolated ideals but as facets of a unified strategy.
Our Social Infrastructure Fund offers pension funds and institutional investors a platform to shape, broaden, and own pivotal healthcare and education infrastructure throughout South Africa. Half of these developments will be rooted in peri-urban, rural, and township landscapes.
We champion rigorous standards, ensuring each asset in our portfolio exemplifies excellence in development and management. This guarantees that the legacy of our infrastructure remains robust and influential long after our involvement concludes. Our ultimate vision? Every child in South Africa has access to quality education without financial strain, and the lack of affordable, top-tier healthcare doesn't compromise any South African's health and productivity.
Central to our strategy is collaboration. We partner with skilled and seasoned operators, helping them grow and refine their businesses without the worries of investing in property infrastructure. This synergistic approach fosters sustainable societal impact and consistently generates robust risk-adjusted returns, regardless of market fluctuations.
We follow a measured approach to investing
01
Deal origination
We emphasize non-speculative, tenant-driven developments. We strategically choose attractive locations to establish long-term, triple-net leases with our trusted tenants. These tenants understand and recognize the crucial role of property maintenance in ensuring their operations run efficiently.
02
Disciplined due diligence
Our due diligence takes a thorough, in-depth approach, concentrating on the property, tenant, and lease. While pinpointing risk areas, we also seek opportunities to enhance and expand our properties, ensuring mutual, long-term benefits for us and our tenants.
03
Sustainable value creation
We're more than just landlords; we're partners to our tenants. Actively identifying potential challenges, we address issues before they grow. Likewise, we spot and collaborate on opportunities, including ESG factors, to boost efficiency and growth for shared benefits.
04
Transformation & Impact
Education and Healthcare in peri-urban and rural areas have traditionally lacked the needed infrastructure investment. Many landlords, whether property developers or affluent family offices, often remain 'untransformed' with little emphasis on ESG or authentic societal impact. We're different. By partnering with capable operators, we aim to meet the distinct needs of the African community, enabling wealth transformation, job creation, and community upliftment.
05
Long-term value add
We aim to build infrastructure that's both practical and lasting. It's about enhancing South Africans' quality of life today and ensuring communities benefit from our investments for generations to come.
Our investment themes
We capitalise on bold opportunities through our investment specialisation, yielding extraordinary outcomes for both our fund investors and partnership companies.
Our three core impact themes guide each fund's investment focus and sector selection. Chosen in alignment with the South African National Development Plan (NDP2030) and the IRIS+ objectives, these themes demonstrate a tangible social impact.
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.
FUND
SECTOR FOCUS
Portfolio Construction
Our investment strategy revolves around purpose-built Healthcare and Education infrastructure investments strategically located in underserved communities. We forge partnerships with seasoned operators to bring quality, affordable services to these areas, delivering not only social impact but also promising returns for our investors. We look ahead, mitigating risk by maintaining a balanced portfolio of income-generating and development properties throughout the Fund's commitment period, ensuring a bright future for all stakeholders.