Dealflow | January 15, 2016

ImpactAlpha’s #DealFlow for Jan. 15, 2016: Weekly Roundup of Impact Investments

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Dealflow goes global this week: Abraaj Group bets big on healthcare expansion in India; Australian retirement funds attracted to affordable housing; and Big Issue Fund’s raise bodes well for UK social enterprises.

dealflowGrowth markets for health care. Betting on the growing demand for affordable healthcare in India, the Abraaj Group, the Dubai-based private equity firm, acquired a majority stake in CARE Hospitals. CARE’s network includes 18 facilities in nine Indian cities, providing thousands of hospital beds in a country that falls well below the World Health Organization’s standard of 30 beds per 10,000 people. India’s Economic Times reported that Abraaj is buying New York-based Advent International’s 72 percent stake for 2000 crore rupees ($295 million). The network’s doctors own the remaining shares. Advent stands to roughly triple its 2012 investment in CARE.

Another Australian retirement fund backs affordable housing. Australian retirement fund HESTA has invested AUS $6.7 million (US $4.6 million) in Queensland community housing provider Horizon Housing, based in Queensland. Horizon will purchase management rights to 995 affordable properties and develop 60 new ones.HESTA, a AUS $32 billion fund with 800,000 health and community services members, is the among the first Australian institutional investors to make a direct impact investment, via its AUS $30 million Social Impact Investment Trust. Low-income and affordable housing has gained traction in Australia as an impact investment sector, with two other employer-backed “superannuation funds” recently making community housing commitments.

Financing for UK social enterprises. U.K.-investor Big Issue Invest achieved a first close of £21 million ($30 million) for its second fund, Social Enterprise Investment Fund II. The fund invests in early- and mid-stage social enterprises and charities needing £50,000 to £3 million in capital. It has made four investments so far in mental health, early education and home nursing organizations.HSBC and Big Society Capital are among its main investors. Big Issue Invest is looking to raise a total of £30 million by year end.

Lok Capital makes its first agriculture investment. An agricultural processing firm with a network of 3,000 potato farmers has received an undisclosed amount of financing from two local impact investors. Siddhivinayak Agri Processing in Pune, India raised the capital from Aspada Investment Company – backed by the Soros Economic Development Fund – which committed 10 crore rupees ($1.5 million) and impact investor Lok Capital, which did not disclose the amount of its investment. Siddhivinayak Agri Processing previously raised 5 crore rupees from the SONG Fund – an early-stage investment fund managed by Aspada and also backed by Soros Economic Development Fund — along with Omidyar Network and Google.

Disability care start-up is investment ready. HireUp, which allows Australians with disabilities to select their own care providershas secured AUS $2.5 million (US $1.7 million). Among the 17 investors are National Australia Bank and the Myer Foundation, a major philanthropic organization in Australia that committed US $500,000 as its first impact investment. HireUp worked with advisory firm Impact Generation Partners on an “investment readiness” plan prior to starting fundraising in 2015.

Vital Farms closed an $8 million round of equity funding from undisclosed investors, according to CrunchBase. Advisory firm Big Path Capital supported the fundraising round – Vital Farms’ third. The Austin-based organic egg company was founded in 2007 and provides organic, pasture-raised eggs to major U.S. supermarkets, like Whole Foods. It works with 90 independent family farms in the U.S. The company has raised $14.5 million since it was founded, with early financing from Whole Foods’ Local Producer Loan scheme.


[seperator style=”style1″]Disclosure[/seperator]

DealFlow is ImpactAlpha’s weekly roundup of what, where, how and why impact capital flowed each week… See more impact deals in ImpactAlpha’s DealFlow section. And send your dealflow news to [email protected].

Photo credit: Horizon Housing