Impact

IMPACT INVESTING ACTIVITY

SELECTRA Management Company S.A. is actively engaged in the promotion and management of impact investing funds.

Impact Investing may be defined as a set of strategies and investment instruments in Companies, Organizations, and Funds with the intention of generating a financial return and other results which may not purely be definable in economic terms.

Impact Investing has therefore the double objective of achieving significant financial results, along with realizing social, environmental and cultural goals, in accordance with the preferences and the intentions of the investor. It is the intentions of the investor that characterize and differentiate Impact Investing from other “socially responsible” investments.

 

European ImpEIIP LOGO 2016act Investing Platform SICAV-SIF is a fully regulated AIFMD fund based in Luxembourg. Promoted by FARAD Group and SELECTRA Management Company, EIIP is the first umbrella fund in the world entirely dedicated to Impact Investing strategies developed by third party organizations.

How does EIIP work?

The fund can host unlimited sub-funds promoted by third party organizations aiming to develop their social and/or environmental projects. Acting as a hub for Impact Investing funds, EIIP is a fully licensed and turnkey platform where ideas meet concrete solutions. Organizations that wish to develop their Impact projects but that are unable to set-up their own dedicated fund, through EIIP, can reach global financial markets and investors. EIIP’s first sub-fund is F&S Global Sustainable Land and Social Housing.

Key actors

SELECTRA Management Company: Alternative Investment Fund Manager (AIFM) (www.selectra.lu)
SEFEA: the sub-fund’s Investment Advisor
KBL: Custodian Bank (www.kbl.lu)
Amicorp: Fund Administrator (www.amicorp.com)
KPMG: Financial Audit (www.kpmg.com)
Arendt & Medernach: Legal Advisor (www.arendt.lu)
Deloitte & Touche: Impact Measurement (www.deloitte.com)
REAG: External Valuer (www.reag-dp.com)

 

pdf-iconRead more on SELECTRA’s impact investing

 

How does the Impact Investing work?
From a technical point of view, the same basic financial instruments and capital categories typical of the most traditional sectors are identically applicable to Impact Investing.
Impact Investing may in particular operate through different financial vehicles such as, for example, Donations, Venture Capital, Risk Capital and Mezzanine Debt or a combination of these, in order to obtain financing and to pursue objectives of social impact (the so-called "hybrid capital").
Impact investments may be directed to both emerging and developed markets. They may also direct capital towards geo-demographic areas presenting social, environmental and/or cultural complexity.
Characteristics of the Impact Investing
Impact Investing distinguishes itself by the following characteristics:
• Intentionality of the investor to carry out investments that generate social impact.
• The expectation of a satisfactory financial return for the investor.
• The flexibility of the expected return rate, which can acceptably be positioned below the average market level or be aligned to market yields.
• The variety of financial instruments used and the forms of intervention ranging from debt to pure equity.
• The measurability of the impact, by means of indexes and ad hoc metrics, which are necessary to ensure transparency and responsibility.