Why Better Finance?
Better Finance seeks to improve upon existing financial and business models to create innovative routes to investing for impact, identifying financially sound solutions, and creating the potential for above market rate returns commensurate with risk appetite. Better Finance identifies, assesses, and manages ways of allocating capital for its clients to achieve not just financial returns, but also social and environmental benefits that are intentional, measured and verified: catalyzing the creation of wealth for the investee as well as the investor. Increasingly, ESG policies are the first part of the journey: crafting and integrating environmental, social, and governance considerations into investments to meet regulatory, fundraising and stakeholder expectations.
The Better Finance vision is to take advantage of the investment opportunities offered by socially-minded and mission-driven enterprises in early and growth stages and connect these opportunities to the capital markets. By working with both patient and philanthropic capital, bespoke investments are structured using a variety of tools, including blended finance, to match the vision of the client and the needs of the growing companies.
About 4 billion consumers living at the base of the pyramid globally, earning less than $3,000 a year in local purchasing power are, as a group, often rural, poorly educated, and economically underserved. Their aggregate purchasing power is estimated to create a $5 trillion global market according to the IFC--leading to major opportunities for businesses that can deliver products these consumers need at prices they can afford.
The global economy is shifting to one of greater accountability. The myriad challenges at home and abroad have beget a new generation of businesses. Environmentally resilient and socially impactful models are not just in vogue, they are reshaping the way business is done. Private sector financial flows are needed to fund solutions to environmental, health and social problems. Partnering with the public sector can bridge gaps in capacity and local presence.
Estimates indicate that impact investing, already a new asset class worth USD 500 billion, could soon grow to USD 1 trillion. Linking a financial return to a social or environmental return is in demand, but investors and philanthropists have struggled to find outstanding projects and companies to work with. Better Finance is the bridge between a strong pipeline of social enterprises and pioneering investors and donors increasingly seeking access to these possibilities.