PG Impact Investments, a global impact investment firm, has recently invested in Lok Growth Catalyst Fund (“Lok III”), an Indian private equity vehicle managed by Lok Capital (“Lok”), targeting early to growth stage businesses that use entrepreneurial solutions to improve the lives of some of the poorest people in India.
60% of India’s large and growing population struggles with annual household income below USD 3’900 and approximately 85% of household wealth is held in the form of non-financial assets. This leads to liquidity problems and difficulties satisfying basic needs such as healthcare and education and these issues are particularly pronounced in rural areas. PG Impact Investments seeks to address these issues through its collaboration with Lok.
Lok III will invest in the financial inclusion, healthcare and agriculture sectors, supporting enterprises that offer individuals far down the “income pyramid” access to responsible, appropriately priced financial services and quality, affordable healthcare, and help small-holder farmers to increase yields or lower costs and enhance their incomes. By partnering with entrepreneurs with proven ability, innovative ideas and a strong passion to create viable solutions to social problems, Lok aims to improve the lives of low-income and underserved households across India, both urban and rural, whilst generating market rate returns.
Lok invests 50% of its profits into the Lok Foundation, sharing PG Impact Investments’ mission to use private market investment to generate sustainable impact, before reinvesting proceeds into activities that meet social challenges not addressable by commercial investors. The strong alignment of mission, vision and values with Lok was an important driver of PG Impact Investments’ decision to invest in the program.
About PG Impact Investments PG Impact Investments was founded in 2015 with the vision that private investment, innovation and entrepreneurial talent can provide solutions to the challenges faced by our society, as well as creating sustainable growth. PG Impact Investments is a private sector, mission-driven, global investment firm specializing in investment solutions aimed at delivering financial returns as well as creating a positive social and/or environmental impact. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges. All profits from the business activities of PG Impact Investments are transferred to PG Impact Investments Foundation. The Foundation supports social initiatives and social businesses ventures that otherwise would not receive funding through commercial investors or investment funds. Whilst being independent from Partners Group, PG Impact Investments entities are backed by Partners Group and its employees, and benefit from the global infrastructure, investment know-how and specialist resources of this leading global private markets investment manager. www.pg-impact.com
About Lok Capital Lok Capital (“Lok”) is one of India’s leading impact investment managers and focuses on promoting inclusive growth in India by making equity investments into social enterprises addressing low income communities and underserved markets in a scalable, affordable, and commercially viable manner and helping them reach new levels of sustainability, scalability and inclusiveness. Founded in 2004, Lok started as a microfinance (MFI) investor. Lok has since deepened and widened its presence within the financial inclusion sector and diversified into healthcare and agriculture. Lok has played an important role in the growth of industry leaders such as Ujjivan and Equitas (MFIs who gained small finance bank licenses) and supported pioneering companies such as Vistaar (SME lending) and niche players such as Drishti (eye care) and SV Agro (agriculture supply chain). The founding and senior team has deep local roots and a long-standing reputation in India and brings together 100+ years of collective experience in private equity, venture capital and impact investment. Lok provides support beyond capital to its investees through value creation initiatives led by Lok investment professionals and a technical assistance program in conjunction with international Development Finance Institutions as well as by making experienced professionals available through its fellowship program. 50% of profits generated by Lok are donated to the Lok Foundation. www.lokcapital.com