We are passionate about Impact INVESTING
Impact investing is an investment approach that intentionally seeks to create both financial return and positive social and/or environmental impact that is actively measured.
At Vital Capital, we believe that social impact and financial return are in a symbiotic relationship when it comes to investing in rapidly developing markets such as Sub-Saharan Africa. Our investments are guided by a conviction that positive, sustainable social impact enhances, rather than diminishes, the profitability of investments.
Impact investing is innovative at every level: as an investment strategy, in the way potential investments are evaluated and, above all, in its underlying business models. Impact investment is a new outlook – perhaps even a paradigm shift – and along with the innovation comes a challenging responsibility to prove its viability. Vital Capital is driven by these challenges, constantly appraising its methodology, sharing it with interested parties, and engaging in a dialogue that will better promote the implementation of impact investing.
From an Environment, Social and Governance perspective, the spectrum of investment strategy is wide. Vital Capital believes that profitable core business and ESG objectives can be pursued in tandem, without trade-offs. Financial returns and positive impact can be positively correlated.
Impact investing, according to our approach, starts by being a responsible investor. ESG risk management and sustainable investments are key factors in our operation and decision-making.
Read more about our Investment policy and process.
Impact investing is much more than mitigating and off-setting negative impacts – it is our primary focus to achieve positive development outcomes. The impact of our investment is one of the key factors by which we assess and measure the success of our business.
Vital’s investment approach is predicated on the principle that there is no inherent necessary trade-off between financial return and social impact. Building on this dual motivation, Vital has developed a multi-dimensional approach to impact investing, resulting in a methodology which translates our fundamental paradigm into a viable investment strategy. Vital’s approach to impact investing consists of PRE-INVESTMENT EVALUATION and post investment MONITORING & MEASUREMENTS.
Intrinsic to this approach is the idea of value creation: developing and implementing solutions that create value for the target communities. In order to achieve that Vital has developed the Vital Impact Diamond tool used to profile investment’s impact.
Vital Capital has created a culture of transparency and accountability in collaboration with our portfolio companies. In addition to using internal KPIs and metrics and our own Impact Diamond Model to assess our portfolio’s impact, Vital is a pioneer fund rated by GIIRS (Global Impact Investing Rating System)
GIIRS Impact Ratings are comparable across sector, geography and company size and comprehensive, covering Governance, Workers, Community, Environment, Socially and Environmentally-focused Business Models. The fund’s ratings are reviewed and verified.
Vital Capital as a Case Study in GIIRS Newsletter
Shaping the Industry, Shaping the Future
Above all, at Vital we believe in constant learning and improving our ESG & Impact practices so we can act as shapers in this inspiring industry. We are actively engaged in the collaborative effort to make impact investing a leading investment strategy.