In the simplest terms, Impact investing involves making investments in funds, non-profit organizations, or businesses that aim to produce both positive social outcomes and financial returns. So, you could see it as an extension of philanthropy, corporate social responsibility (CSR) or better still, the idea of businesses taking responsibility and being accountable for their operations (mostly negative to the environment) and making efforts to minimize harmful impacts, such as pollution and resource depletion.
Funds from this investment are used to support companies and industries in worthwhile causes to produce social and environmental benefits while also earning profit. Often, the category of investing covers areas such as: Education, Agriculture, Renewable energy, Healthcare and Emerging markets. The beauty of impact investing lies in the fact that it’s in line with the investor’s conscience and ethics.
Impact investing has now emerged as a powerful force in the financial world as a tool for combining profit with purpose. One of the more structured, significantly advanced modes of Impact Investing is Infrastructure Funds.
Infrastructure, as we know it, is the bedrock of any economy. Individuals and organizations thrive in environments where infrastructure is robust, reliable, and continually evolving. Quality infrastructure supports economic growth by providing essential services and facilitating economic efficiency and the interplay between services and people. It encompasses a wide range of facilities and systems, including transportation networks, communication systems, energy supply, water and sanitation, and social infrastructure such as schools and hospitals; providing the essential framework upon which economic activities thrive. Without robust infrastructure, the real economy, which involves the production, distribution, and consumption of goods and services, would struggle to function efficiently.
Given the critical role that infrastructure plays in economic stability and growth, infrastructure funds present a compelling investment opportunity. Infrastructure funds are investment vehicles that pool money from various investors to finance large-scale infrastructure projects. Think of them as collective investments in the backbone of an economy. Even though infrastructure has typically been a governmental responsibility, public finances have been stretched, Public Private Partnerships (PPP) have sprung up to close the gap in funding. The private sector is also known to offer a lot in improving productivity and performance, allowing private companies to take on large projects – and infrastructure funds to invest in these companies. They offer stable, long-term returns and the potential for significant positive impact on society.
Impact at our core: The United Capital Infrastructure Fund (UCIF) Story
On November 3, 2021, we set out to transform infrastructure with the launch of the United Capital Infrastructure Fund (UCIF). This fund offers investors the unique chance to drive meaningful impact while achieving stable financial returns. UCIF launched with the goal of bridging the infrastructure deficit in Nigeria and Sub-Saharan Africa, with a focus of financing medium to long-term projects that enhance essential infrastructure; Transportation, Agribusiness, Renewable Energy, Telecommunication, and Social Infrastructure. The fund is authorized to allocate up to 80% of its total assets in Nigeria and the remaining 20% in Sub-Saharan Africa.
Since inception, we have strategically prioritized themes central to impact investing: Growth, Empowerment, Regulation, and Profitability. These guiding principles have been effectively applied across three main sectors: Power, Emerging Corporates, and the Public Sector.
Our impact so far has been significant, resulting in:
To solidify our drive for impact investment, we continue to create platforms for learning and engagement, empowering our community with the knowledge needed to make informed, impactful investment decisions.
We recently hosted an insightful webinar session, offering a unique opportunity for individuals to understand the dynamic world of impact investing. Our esteemed panel of industry experts shared their invaluable experiences, insights, and challenges, providing a comprehensive understanding of the field.
On the panel was UcheNna Mkparu, Fund Manager/Chief Investment Officer United Capital Infrastructure Fund, Temidayo Ajayi, Co-Managing Partner Detail Commercial Solicitors, Nneka Eze, Managing Director Vested World and Manoj Sinha, Managing Director Husk Power Systems; all sharing their unique perspectives and experiences on navigating Impact Investment through Infrastructure funds. This webinar was a remarkable opportunity to gain insights from these trailblazers in impact investing, each contributing to sustainable growth and development in their unique ways. Tap here to watch, in case you missed it.
Building on this success and our unwavering commitment to making meaningful socio-economic impact, our Series III issuance, a ₦10 billion offer, is now open to interested investors with a minimum ROI of 23%. Don’t miss out—this offer closes soon.
