Social Private Equity - Mobilising Capital for Transformative Social Change

About SPESA

Social Private Equity (SPE) targets opportunities with high social value add and utilises the generic PE methodology to support enterprises primarily serving BoP sectors by:

  • using low yield mezzanine instruments and providing non-financial assistance to investees
  • lowering entry costs for social entrepreneurs to create sustainable business models
  • facilitating the delivery of social goods, services & infrastructure more affordably and reliably

Investors in SPE funds will be able to achieve returns ranging from traditional PE (banking via mobile telephony) to sub-market (water distribution infrastructure to rural communities), targeting a blended return of around CPIX+5%.

Nevertheless, given its socio-political history and current robust economic outperformance, SA provides an excellent environment in which to explore innovative socio-economic formulations that:

  • deliver quality social goods, services & infrastructure more affordably and reliably
  • lower entry costs and broadens access to economic, especially entrepreneurial, participation
  • encourage entrepreneurial and community-based activity as a means of self-help

For more information on SPESA please read our Discussion Paper.