Investing in Women Case Study Series: Root Capital
Summary
This case study discusses the achievements and key learnings of Investing in Women (IW) and Root Capital in advancing gender lens investing through blended finance structure.
To reduce the funding gap to women’s small and medium scale enterprises (SMEs) and mobilise capital flow to women’s SMEs, IW has established four different blended finance structures with impact investing partners via the provision of a performance-based grant.
This unique blended finance approach is the first of its kind in Southeast Asia which mobilises as well as accelerates capital flow to women’s SMEs.
Root Capital, a US based non-profit global impact investment manager and accelerator of small and growing agricultural enterprises in Africa, Latin America and Southeast Asia. As a pioneering agricultural gender-lens investor, Root Capital prioritises opportunities to target SMEs that engage women as enterprise leaders, employees and farmers.
This report discusses how IW’s investment in Root Capital supports permanent lending capital for women’s SMEs, loan loss reserves, market establishment studies across Indonesia, Vietnam, and the Philippines, and lending operational support. Root Capital’s gender lens investing strategy focuses on gender-inclusive businesses, rather than exclusively on women’s SMEs.
This is part of a series of case studies detailing the four investment vehicles established by IW with reputable global impact investors including Root Capital, along with Capital 4 Development, Patamar Capital, and Small Enterprise Assistance Fund. The series was developed by Ernst & Young with support from Investing in Women.
Highlights
- Root Capital’s investment activity recognises and highlights women’s diverse and important roles across the agricultural value chains.
- The gender lens investment strategy needs to incorporate the ways that client businesses impact women’s economic empowerment.
- Both women and men need to be engaged in women’s economic empowerment.
- Investment in gender-inclusive and women-led businesses requires an explicit lending approach from pipeline development through loan monitoring.
- Gender lens investing requires a whole-of-organisation commitment in both external-facing efforts and internal policies and practices.
