Our Services
Aequalitas Capital Partners offers advisory services in Impact Investment and Environmental, Social and Governance (ESG) to organisations seeking to deploy capital or receive capital for growth and impact.
We focus on articulating a foundation of sound strategy, thereafter enhancing project development through efficiency in rapid design. Our methodology is rooted in practical implementation that saves time and resources while increasing speed to launch and success.
We enable the implementation of practical, innovative and effective solutions. This is through our deep market understanding as well as networks locally and internationally, across investors and sectors.
We strive for the appropriate positioning with a genuine narrative given how confusing it is to navigate the impact and ESG space.
We work to achieve sustainable business growth by designing and implementing solutions for profitability.
We bridge the information gap of Impact Investment and ESG management. This is through our strong understanding of local context, global connections, sector engagement and deep domain expertise.
Our Practice Areas:
IMPACT INVESTING
Impact Investing
We are fundamentally applying capital through a conscious approach to develop a quality of returns reflecting better financial outcomes and better impact socially and on the environment. We have seen how value can be unlocked through the private sector, especially in global markets, as they are fundamental to driving economic growth and human development. For those who implement greater inclusion, enhanced corporate governance, and climate change friendly environmental impact, resilience and long-term value are generated.
Since 2015, the world has coalesced around the UN Sustainable Development Goals, as being a critical agreed mechanism to address global challenges. The 17 goals and 169 targets show the interconnected nature of economic, social and environmental wellbeing. We help clients navigate the complexity of the SDGs and help implement well-aligned solutions integral to their organizational strategies for a win-win. We do this against a backdrop where we all as consumers, investors and citizens want to see greater good from our capital and our work.
Impact Investment Strategy Advisory
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Our proven methodologies of inquiry, relevant expertise, deep problem solving approach, and strong local/ international networks allow us to design programs well. We enhance project development through efficiency in rapid design with practical implementation that saves time and money. We help clients navigate a world which has rapidly progressed from general discussions on sustainability to requiring clarity of purpose and alignment with impact principles based on a diverse panorama globally coordinated initiatives and networks like the SDGs, the UN Global company, the Principles of Responsible Investing and the Equator Principles.
Operational Integration
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We solve to bridge the top down strategic intent and bottom up practical implementation of Impact Investment initiatives. We focus on Impact Investment execution, development of rational frameworks, institutionalization of clear processes and bespoke tools, data analysis and narrative and case studies for measurement and evaluation, impact Due Diligence and inclusive impactful business model development.
Impact Narrative
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Impact Narrative: It is critical to have contextual appropriate framing of the impact of the activities of our clients. We develop communications strategies that genuinely connect with stakeholders, yet balance financial prosperity and impact. We deliver thematic/annual reports that are nuanced and critically inclusive of the local agents of change to bridge the information gap.
Business Advisory
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We provide experienced fund advisory services from investment thesis to fund establishment to pipeline development of deals to investor fundraising. Additional services include conducting due diligence and reviewing investment readiness of companies seeking financing.
Talent and Thought Leadership
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We want to democratize Impact Investing skills and knowledge through training and knowledge sharing. For capital to be deployed well, understanding of impact should be a common thesis within development practitioners, investors and companies.
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG)
Environmental, Social & Governance (ESG)
ESG has become the bedrock of institutionalised accountable organisations. Core areas to focus on are regulatory and legal compliance, risk management and value creation. Investors are increasingly calling for mandatory meaningful inclusion of ESG into the investment process across all asset classes.
Over the years, it has become clear that effective management of ESG factors improves the fundamental analysis undertaken during investment assessment. This is through the greater inclusion of relevant information, essential for investment decision making. The effective integration of ESG factors into investment processes and decision-making requires more than a theoretical approach. It requires practical experience, contextual expertise, and deep local networks.
While investors have primarily coalesced around ESG standards, these need to be interpreted to the specifics of each investor and investment. Doing so effectively is how investors and businesses can ensure better and informed allocation of resources, investment decisions, portfolio management and performance.
ESG Strategy Advisory
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We help our clients develop a bespoke position on ESG matters based on a comprehensive understanding of relevant factors, materiality, and opportunities. This is aligned with the strategy of their businesses/ investment mandate. Where companies have a strong position on ESG, they become more resilient in deriving value through active ownership and meaningful engagement with a broader set of stakeholders. This approach allows for consideration of evolving industry standards. Strong ESG has been shown to lead to lower risks and higher returns, with long term sustainable financial performance. Across 12 industries studied, the positive effect on equity returns averaged 6.12% [Source: UNPRI, January 2017].
ESG Integration
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Proper integration of material ESG factors in businesses leads to long term sustainability which includes viable financial performance. We help our clients to build sustainable assets by fully integrating ESG into their investment process. We advise on ESG mandate compliance, which is critical to ensure from fundraising to portfolio management. Further, we enhance investment decision-making through the development of bespoke easy-to-use systems and tools incorporating technology.
Our tailored solutions:
Develop customised ESG frameworks, policies and procedures for an end-to-end ESG management system
Conduct due diligence on funds and potential investments, creating specific and measurable corrective action plans and value creation strategies
Post-investment portfolio monitoring for ongoing management of ESG action plans
Portfolio evaluation for regular reviews or exit preparedness
ESG reporting for funds or portfolio companies. Increasingly, appropriate levels of disclosure are required by investors. We help present accurate, transparent ESG reporting as being operationally important.
Training & Capacity Building:
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We work with clients who want to ensure that they have skilled investment professionals to assess ESG risks and opportunities. This is done by remedying the knowledge gaps impeding effective ESG management through bespoke learning and development tools. These tools have been developed by the seasoned Aequalitas Capital Partners team, considered from the Limited Partner and General Partner perspectives, which forms the experience base of this team.
The ethos of this service is to support the building of ESG capabilities in our regions. To accomplish that, we provide training and capacity development of investment professionals, in-house ESG practitioners and other stakeholders. The focus is on early identification, practical engagement with and assessment of material ESG factors.
ESG Audits
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We conduct ESG audits to ensure investments remain in-line with their investment agreements. We ascertain compliance and materiality via a data-driven and narrative rich approach, placing the review within the context of the operations of the business. This avoids a “rubber-stamping” adherence to generic ESG principles and frameworks, whilst creating ESG data that can be trusted and verified by stakeholders.
Focussed Services
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1. Transformation – For Clients Operating in South Africa
We offer a bespoke approach to ensure that capital is distributed in-line with the Broad-Based Black Economic Empowerment (B-BBEE) principles in an equitable and effective manner. This is the South African policy aimed at levelling the economic playing field. The Aequalitas team is trained and experienced in providing B-BBEE transaction related services on implementing meaningful transformation initiatives as well as training and capacity building for investors and investees.
2. COVID-19 ESG Management Service
We bring our practical experience, contextual expertise and deep local networks to help you better respond to the current disruptions caused by the Covid-19 pandemic. We understand investors and companies need to build resilient and proactive responses to the Covid-19 pandemic.
Themes
Aequalitas Capital Partners focuses on themes critical to the future of growth markets.
Inclusive Economic Prosperity
Multifocal economic development, where capital invested and utilised delivers higher risk-adjusted returns, greater inclusion of society, leading to resilient social and environmental impact at scale.
Gender-Lens Investing
Gender equity, from an ethical basis to achieving mutually reinforcing economic success though the financial and economic inclusion of women as investors, entrepreneurs, employees and customers.
Youth
Unlocking the creativity and skills of a large part of the population to achieve a demographic dividend that creates a stable economy designed for growth.
Job Creation
Sustaining economic success requires strategies for the significant creation of stable wage paying jobs, including entrepreneurship development, scale up of early stage and small and medium enterprises, expansion of labour-intensive industries and skills development.
Climate Change
While climate change poses substantial risks to both society and the economy, there are substantial opportunities to mitigate and apply alternative solutions for a more sustainable future with better cost-benefit outcomes than previously available.
Sectors
While we cover a broader range of sectors, the team have expertise in five sectors vital for economic development.
Healthcare
Provision of affordable quality maternal and child health, preventative health care, primary care, secondary care and tertiary care.
Education
Reform and scale of accessible quality primary, secondary and tertiary education, technical and vocational education and training.
Agriculture
Developing highly productive food & agribusiness companies, facilitating primary agriculture and increasing food security.
Financial Services
Increasing access to banking, credit, saving and insurance solutions, with inclusive digital access.
Clean Energy and Infrastructure
Energy self-sufficiency and universal energy access, with greater access to clean energy solutions on a commercial and private scale. Critical physical infrastructure development.
