SocialAlpha Fund

Portfolio

Our investment philosophy merges the financial discipline of the private sector with the vision of sustainable development. SocialAlpha finances businesses that can build a sustainable future for all while generating attractive risk-adjusted financial returns for their investors.

Our investment thesis relies on the unmet needs of low- and middle-income consumers in Latin America and Sub-Saharan Africa and their growing purchasing power. The prospects for financial return are enhanced by the limited local bank offering and the terms of capital available to local early- and growth-stage ventures.

We embed gender analysis in our diligence process and strive to work with companies on advancing gender empowerment and equality at the staff and beneficiary level. Portfolio companies are typically at an inflection point where AlphaMundi’s support on reporting systems, risk management, and value chain consistency can deliver substantial added value for all.

Our investment strategy focuses on Latin America and Sub-Saharan Africa. We identify emerging and established market leaders with annual sales of USD 1M to USD 30M, and build up fund exposure progressively as they achieve financial and impact milestones, with investments ranging from USD 250K to USD 2M per company.

– Latin America & Sub-Saharan Africa.
– Emphasis on sustainable food and agriculture, financial inclusion across microfinance and fintech, and renewable energy across solar and biogas.
– 80% allocation to growth-stage and 20% allocation to early-stage.
– 80%+ exposure to senior debt, with additional upside via mezzanine, conversion options or warrants. Up to 10% in cash. The fund can’t hold equity and will pass on such upside opportunities to its co-investors.
– Gender Lens across the investment process and holding period, with dedicated TA facilitated by the AlphaMundi Foundation.