Newly licensed LCM Capital, a Motswana owned private equity fund manager, is seeking to raise P500 Million by the end of the first quarter of 2021 (Q1 2021) for its impact investing fund. Peo Impact Fund is Botswana’s first local impact fund aligned to the UN Sustainable Development Goals, with a mission to provide investors with long-term capital appreciation and risk adjusted returns by investing in diversified high impact portfolio investment funds and companies.
Founder at LCM Capital, Lindiwe Mafavuneh, highlights that the Fund’s inception comes at a critical time. “We want to be the strategic impact investing partner of choice for institutional investors and other investors in the green economy sector. With the life span of youth and women enterprises less than 5 years and a failure rate of over 80%, Peo Impact Fund seeks to change this trajectory by striving to grow and support the development of emerging youth and women businesses with growth capital and management frameworks that benefit their processes and systems.”
It is expected that through such diversification, the Fund will be able to achieve more consistent returns and lower volatility than would generally be expected if its portfolio were more concentrated in a single fund, geography, sector, vintage year, or a smaller number of funds. The Fund intends to become an important component of Botswana’s strategic economy growth plan to build a clean, sustainable, low-carbon economy that has both lower emissions and profitable enterprises.
“The green economy is an important sector and is the main driver of infrastructure growth globally. We are delighted to have incepted a Fund that is targeted at taking the first step in creating a strategic partnership that aligns high quality investor capital with our expertise in project development. The Fund seeks to enhance Botswana’s existing fiscal position and support the development of various infrastructures in our sectors through adjusted returns,” states Mafavuneh.