What We Do
In early 2019 we took a strategic decision to position the Novare group as an impact investor. Impact investing was not new to Novare and we have been focusing on ESG and total value creation ethos during the deployment of our earlier property funds. In the consulting business, we are a strong advocate of responsible investing whilst in the multi-manager proposition we invest with fund managers who integrate ESG in their investment process. We do not consider ESG or Impact Investing to be a product but rather it is a mindset and a way of investing. Total value creation for all stakeholders including investors, the communities and the planet at large requires an investment approach that integrates and takes into account all other outcomes beyond just financial investment returns.
This mindset has allowed us to create a lasting impact in the communities in which we have invested in the past. While many would have seen a development property fund as just another investment vehicle, we took the view that the properties we were developing would become enablers for other businesses to develop, grow and thrive.
We were thus intentional and active in our property development and management approach to ensure that developments create a sustained positive environmental and social change for all stakeholders and the environment. The consequence of our approach has been the creation of sustainable jobs and increased economic activity in the communities in which we operate. We are clear that jobs alone are not sufficient, and that people need to work in an environment that is safe, and one that is conducive to their wellbeing.
Between us and our partners, we have played a key role in developing various supply chains, building skills and capacity, ensuring safe working conditions and the wellbeing of employees, creating and supporting new businesses to become more resilient to changing environmental and social conditions and consumer demands.
The benefit for investors has been a portfolio of quality assets that were developed under budget, are run efficiently and have proven to be resilient in tough market conditions. Our mindset has resulted in total value creation and we believe we have been able to maximize value for all stakeholders from a financial, environmental and social return perspective.
We have also been able to meet our fiduciary duties and contribute to the wellbeing of society while also enhancing the brand value and creating a differentiated position in the market.
We have gained a lot of experience and learned a lot of lessons along the way which we believe will stand in good stead going forward. Following the successful deployment of the Novare Africa Property Fund II, in early 2020 Novare Impact Investment Partners was established to manage the Novare South Africa Impact Fund.
The Global Impact Investing Network defines impact investments as investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. The Novare South Africa Impact Fund will not only targets financial returns but will also seek to attain measurable social impact. The Fund aligns with the National Development Plan domestically and the UN Sustainable Development Goals.
Any investment made by the fund will address one or more of the UN’s 17 Sustainable Development Goals that are aimed at ending poverty, protecting the planet, and ensuring prosperity for all, with the objective of achieving a more sustainable planet by 2030 and making the world a better place.
Our Impact Approach
Our Impact Investment approach entails the following:
- Formal adoption of an impact policy
- Establishment of impact priorities and commitments
- Consideration of these priorities and commitments in the selection and management of investments
- Integration of ESG in the investment process
- The formal allocation of impact-related roles and responsibilities to relevant team members
- The measurement and disclosure of impact performance
The Fund’s targeted sectors are as follow:
- Agriculture – targeting investment opportunities in the agriculture, food and their value chains on quest to ensure food security and create jobs
- Manufacturing – targeting investment opportunities in the manufacturing sector and their value chains
- Infrastructure – targeting investment opportunities in renewable energy, transport, water, ICT and other infrastructure projects
Reasons to Invest
The fund's targeted sectors are as follows:
- Invest in priority sectors of agriculture, manufacturing and infrastructure
- Measurable, intentional and deliberate impact objectives to be delivered and contracted with each investment
- En-commandite partnership structure – each investor to account for their respective tax status
- Targeted IRR of CPI + 12%.
- Black managed private equity Impact Fund – Level 1 BBBEE Contributor
- Highly experienced investment team
- Strong pipeline including some well-advanced projects
- Diversified investment portfolio characterized by a blend of typically low risk real assets projects and high-return propositions in the priority sectors of agriculture and manufacturing
- Support government initiatives which targets similar sector on the premise that they will assist in accelerating growth
The fund was launched in the middle of a tough economic climate while the world is dealing with a global pandemic. Investors will thus gain exposure to South African high social impact investments on quest to specifically play a counter-cyclical role in the economy whilst also generating a good financial return. We are still fund raising and please get in touch with us on firstname.lastname@example.org if you would like to find out more about the Novare South Africa Impact Fund.