Impact Investing: Myth and Reality

By Cyrille Antignac

Impact Investing is now well-publicized, along with other categories of sustainable investment. Recognized as an asset class on its own right since 2010, impact investing has registered the fastest growth in all categories of investments. This remarkable performance is attracting increasing attention as well as raising questions on the realities and practices of impact investors.

Written by a practitioner, this book aims at offering some answers and shedding some light over what constitutes impact investing. It covers Impact Investing in practice with case studies to illustrate innovation fostered by impact entrepreneurs as well as techniques of impact investors. Then, it focuses on measuring impacts in a « triple bottom-line » perspective. Finally, the book closes on a review of trends and outlook for impact investing.

The author distinguishes between classic social business known for low-return and « patient » capital with innovation-driven ventures strategically intent on addressing market needs in the multi-billion strong population with low income below two dollars per day. The latter category presents opportunities for large capital appreciation and already signals unicorn-like performance.

The book explains how impact investing tends to focus increasingly on tech-based innovation for social and environmental improvement. It shows how such innovation can be market disruptive and open very large markets at the base of the social pyramid by addressing pent-up demand. Impact ventures that are successful in opening these markets through affordable and inclusive solutions, tend to create new market dynamics on which to deliver high investment multiples for investors.

Impact investors worldwide are seeing the emergence of innovative business models intent on solving issues around poverty, social integration as well as climate change and environment depletion. This is particularly true in Asia where impact investing is called to a bright future with only a small fraction of global impact capital to date despite sustained growth and stiff exposure to social pressure arising from urbanization, industrialization and climate change.

Against this backdrop, Southeast Asia, the « third engine » of Asia-Pacific, presents an attractive case for impact investing. Already a global spot for venture capital with over twelve unicorns since 2012, ASEAN is home to a growing nexus of impact ventures, all building on a « social-tech » approach to develop solutions addressing the needs of people and planet.

• Language: English
• Publisher: Cyrille Antignac
• Release date: Nov 3, 2019
• ISBN: 9781393621737

Cyrille Antignac

Cyrille Antignac the founder and chairman of UBERIS, an Impact Investing firm as well as an advisor to family offices and institutions engaged into sustainable and impact investment. He is also an author and lecturer in leading universities on the topic of Impact Investing. Cyrille started his career in 1996 in Project Financing with GIBB International – a major UK civil engineering – and then in Corporate Finance with KPMG Financial Advisory in London. During 8 years, Cyrille contributed to around 30 corporate transactions (M&A and Private Equity), privatizations, IPO, distressed turnaround and fund raising. From 2006 to 2014, Cyrille engaged into private equity investments in the Mekong region. First, he built an investment firm to help European corporations invest in Vietnam. Cyrille advised transactions for international corporations. In 2007, he was hired by a private equity firm to structure and oversee investments in Vietnam and Cambodia. After the Global Financial Crisis in 2008, Cyrille returned to Europe where he helped build three investment funds in Agro-forestry and biomass energy, real estate, forestry and impact investing (total AUM : $200m). The later was a $7.3m fund and first emerging impact fund authorized by the UK FCA. On the back of this last achievement, Cyrille started Uberis Capital with a group of social entrepreneurs and investors based in the Mekong region where Uberis Capital became one of the active pioneers. In 2018, Cyrille launched UBERIS, a “triple bottom-line” return-seeking Impact Investing firm together with Dr. Sov Leang, a highly successful Energy Access entrepreneur. To date, UBERIS has invested in high impact ventures in Off-grid Energy, Solar Pay-Go, Smart Agriculture, C2C digital commerce, Clean-tech, Smallholder Ag, Water Access.  Cyrille is certified in Corporate Finance by the Chartered Institute of Securities & Investment in London. He holds a Master in Management and Finance from ESC Tours Grandes Ecoles and the DECF Accounting Degree (French Chartered Accountancy). He performed Doctoral Studies in Management Sciences at Paris-Dauphine University. Cyrille is a BMW Harald Quandt World Young Leader. He is a lecturer at Sciences Po, ESCP Europe, Kedge Business School, Social Entrepreneurship Mentor at the MIT Solve Challenge and former tutor at Oxford University Saïd Business School (SBS).

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About the Author

Cyrille Antignac is the founder and chairman of UBERIS, an Impact Investing firm as well as an advisor to family offices and institutions engaged into sustainable and impact investment. He is also an author and lecturer in leading universities on the topic of Impact Investing.

Cyrille has 20 years of experience in Corporate Finance and Private Equity in Asia, Africa and Europe. UBERIS backs private enterprises with strong social impacts. It aims to provide both expansion financing and assistance to grow innovative impact ventures.

Cyrille started his career in 1996 in Project Financing with GIBB International – a major UK civil engineering – and then in Corporate Finance with KPMG Financial Advisory in London. During 8 years, Cyrille contributed to around 30 corporate transactions (M&A and Private Equity), privatizations, IPO, distressed turnaround and fund raising. Parallel to his career, Cyrille engaged into entrepreneurship and investing. In 1995, he co-founded an engineering enterprise sold at a multiple of 8x after 7 years. He then re-engaged earnings into a number of start-up ventures in e-commerce, ICT, software.

From 2006 to 2014, Cyrille engaged into private equity investments in the Mekong region. First, he built an investment and cross-border advisory firm to help European corporations invest in Vietnam. Cyrille and his partners advised transactions for international corporations and institutions. In 2007, he was hired by a private equity firm to structure and oversee investments in Vietnam and Cambodia.

After the Global Financial Crisis in 2008, Cyrille returned to Europe where he helped build three investment funds in Agro-forestry and biomass energy, real estate, forestry and impact investing (total AUM : $200m). The later was a $7.3m fund and first emerging impact fund authorized by the UK FCA. On the back of this last achievement, Cyrille started Uberis Capital with a group of social entrepreneurs and investors based in the Mekong region where Uberis Capital became one of the active pioneers.

In 2018, Cyrille launched UBERIS, a triple bottom-line return-seeking Impact Investing firm together with Dr. Sov Leang, a highly successful Energy Access entrepreneur. To date, UBERIS has invested in high impact ventures in Off-grid Energy, Solar Pay-Go, Smart Agriculture, C2C digital commerce, Clean-tech, Smallholder Ag, Water Access. 

Cyrille is certified in Corporate Finance by the Chartered Institute of Securities & Investment in London. He holds a Master in Management and Finance from ESC Tours Grandes Ecoles and the DECF Accounting Degree (French Chartered Accountancy). He performed Doctoral Studies in Management Sciences at Paris-Dauphine University. Cyrille is a BMW Harald Quandt World Young Leader. He is a lecturer at Sciences Po, ESCP Europe, Kedge Business School, Social Entrepreneurship Mentor at the MIT Solve Challenge and former tutor at Oxford University Saïd Business School (SBS).

Acknowledgments

The author wishes to express thanks to contributors in this book who helped with research, editing and translation. The author would like to thank particularly Phavie Leang, William Prothais, Victoria Lamour-Chambon, Pierre-Louis Vié, Daniel Brett and Dr. Sovarong Leang.

Prologue

––––––––

Impact Investing is now well-publicized, along with other categories of sustainable investment. Recognized as an asset class on its own right since 2010, impact investing has registered the fastest growth in all categories of investments. This remarkable performance is attracting increasing attention as well as raising questions on the realities and practices of impact investors.

Written by a practitioner, this book aims at offering some answers and shedding some light over what constitutes impact investing. Chapter 1 starts with definitions and key notions to help introduce the asset class. Chapter 2 is about Impact Investing in practice with case studies to illustrate innovation fostered by impact entrepreneurs as well as techniques of impact investors. Chapter 3 focuses on measuring impacts in a « triple bottom-line » perspective. The last chapter closes the book on a review of trends and outlook for impact investing.

The author distinguishes between classic social business known for low-return and « patient » capital with innovation-driven ventures strategically intent on addressing market needs in the multi-billion strong population with low income below two dollars per day. The latter category presents opportunities for large capital appreciation and already signals unicorn-like performance.

The book explains how impact investing tends to focus increasingly on tech-based innovation for social and environmental improvement. It shows how such innovation can be market disruptive and open very large markets at the base of the social pyramid by addressing pent-up demand. Impact ventures that are successful in opening these markets through affordable and inclusive solutions, tend to create new market dynamics on which to deliver high investment multiples for investors.

Impact investors worldwide are seeing the emergence of innovative business models intent on solving issues around poverty, social integration as well as climate change and environment depletion. This is particularly true in Asia where impact investing is called to a bright future with only a small fraction of global impact capital to date despite sustained growth and stiff exposure to social pressure arising from urbanization, industrialization and climate change.

Against this backdrop, Southeast Asia, the « third engine » of Asia-Pacific, presents an attractive case for impact investing. Already a global spot for venture capital with over twelve unicorns since 2012, ASEAN is home to a growing nexus of impact ventures, all building on a « social-tech » approach to develop solutions addressing the needs of people and planet.

Chapter 1

What is Impact Investing?

1.   Introduction

Impact investing, the latest addition to the private equity family, is defined as an investment in private companies intended on solving social and/or environmental problems. It takes many forms that tend to diversify over time because of innovation and a continuous flow of new investment managers.

First known as social enterprises, companies backed by impact investors range from non-profit enterprises