Mixed Investment Projects
Dequity Partners Dequity Blog
So What Is A Mixed Investment Project?
Many charities, philanthropists and charitable foundations work on a donation basis. They ask for donations, invest the donations in suitable projects and then ask for more donations. Another common model is for the charities, philanthropists and charitable foundations to invest a proportion of their funds in the share market through various mechanisms.
This has been the case for many years but in lean economic times donations often dry up, or investment returns are lower than predicted leaving many projects unfunded.
We believe there is a better way, one that reduces the emphasis on continual money raising through donation based activities or having to employ investment managers to punt on their behalf. We specialise in projects that have a good economic return on investment in the projects themselves. Sustainable commercial projects that return profits themselves.
By way of an example, take our water investment opportunity. The government of a South East Asian country needs a whole range of infrastructure improvements to supply clean water and sanitation services to a growing region. Our role is to structure this as an investment and help execute the investment project through it’s lifecycle.
When the project is funded and executed, the investor receives a return on their investment and the project provides employment, sustainable industry development and social benefits. If this were funded by a charity, philanthropist or charitable foundation they could choose to take back their initial investment and reinvest the profits in other projects. However, the economics of the project mean that it also appeals to private investors.
If this was funded purely through donations, the funder would be asking for more money to fund another worthy project almost immediately.
Tags: Charities, Charity, Commercial, Donations, Economic, Foundation, Foundations, Humanitarian, Investment, mixed investment projects, Philanthropist, Profits, return on investment, Social, South East Asia
We define Mixed Investment Projects as those that provide social, humanitarian AND commercial benefits.