The balance of power. Our unique charitable vehicle
Balanced Portfolio
Entrepreneurs Unite has developed a specialised charitable investment vehicle that ensures balanced, innovative investment management.
Our focus on profit as an economic motivator ensures that capital is being invested with maximum potential to be preserved, returned or reused in the future.
However, no single method of investment is suited to every purpose. Each investment method has different goals, requires different measures of success and
engages different investment decision makers and administrators.
To achieve this balanced outcome, our approach:
- draws on entrepreneurial disciplines
- employs profit as a motivator and is therefore sustainable
- aims to achieve positive social impact
- engages our members, tapping their expertise most productively
- is accountable and reportable
Our portfolio of investment funds and vehicles can be accessed independently or collaboratively, and combines:
- Small & Medium Enterprise Fund
- Active Enterprise Investments
- Kick Start Capital Fund
1. Small & Medium Enterprise Fund
We invest in businesses, social enterprises and people that have a profitable and sustainable concept combined with entrepreneurial flair and passion.
Our investment plan is to support small and medium enterprises (SMEs) that are under-serviced by commercial banks and lack collateral. This kind
of investment provides opportunities to generate profits whilst also achieving social impact, scalability and sustainability.
The focus for the fund is on capital preservation with potential for nominal returns (we target net 5% IRR). Members have the opportunity to be involved in the Investment Review Board and provide mentoring if they wish. The fund will be administered by our local partner with investments in the range of
£7.5k - £375k. Debt financing at competitive market rates will be the primary vehicle for investment. The fund's capital will be patient social capital, extending favourable terms to the supported businesses.
2. Active Enterprise Investments
One of the key roles of Entrepreneurs Unite is to harness the skills, passions, networks and acumen of our members to enable both social and economic returns.
Members of Entrepreneurs Unite can be actively involved in the selection and development of investments, and contribute their entrepreneurial insight with
a view to maximising the investment's potential.
These investments provide the opportunity to take equity stakes in the underlying business and are focused on maximizing returns, which members can choose to take or to reinvest.
Due to the nature of this type of investment we will take a very opportunistic approach. Transactions like these don’t stand still and therefore we expect to provide members with access to Active Enterprise Investments at irregular times and not just on predefined investment trips.
3. Kick Start Capital Fund
Initiatives that tackle social issues are always in need of financial support. The social focus of Entrepreneurs Unite will be on health, education and child welfare
in South Africa; however such initiatives must demonstrate that they are sustainable in the long term.
With the combined expertise, knowledge and passion of our members, we can create sustainable opportunities. Through our networks we will engage local
authorities, ideally through performance-related agreements, where local government investment in infrastructure is matched by our social and
capital ventures.
The Kick Start Capital Fund is intended to be for loans or grants that produce large social and economic benefits to communities.
Investment Discipline
Our focus on profit as an economic motivator ensures that capital is being invested with maximum potential to be preserved, returned or reused in the future.
We will partner with local experts to act as local fund managers whose role will be to use their local knowledge and networks to identify the best opportunities
and manage the investments after agreements have been made.
However, no single method of investment is suited to every purpose. Each investment method has different goals, requires different measures of success and engages
different investment decision-makers and administrators.
The table below illustrates the difference in primary goals, measures and decision-makers for the three fund types.
How to join us
There are 2 opportunities for you to be involved:
Active Member
Active members join fact-finding trips to participate in investment decisions. Each active member pays an annual membership fee of £5,000 and will invest
£100,000 or more.
Associate Member
For those with less time to commit, we welcome contributions of £10,000 or more which will be invested in conjunction with, and by, our active members.
If you are interested in becoming an active or associate member call +44 (0) 207 664 6158 or email alison.copus@virginunite.co.uk.
Forthcoming Events
The next members' events will be:- South African Investment Committee Meeting: 12th - 15th January 2008, Johannesburg, South Africa
- Members Briefing: 21st February 2008, 6.30pm, Hospital, 24 Endell Street, London
