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Posts Tagged ‘Europe’

Diving Deep, Crossing Boundaries: A SOCAP WrapUp

June 2nd, 2011 No comments

This post was written by SBS MBA Nikhil Neelakantan, who has just returned to Oxford after 3 days at SOCAP/Europe.

Courtesy of twentytwentystudios

Last night’s six-member panel brought SOCAP/Europe to an appropriate end.

The panel consisted of social entrepreneurs, volunteers and the founding members of SOCAP/Europe, Kevin Jones and Frank van Beuningen. This was typical of the conference: people from all backgrounds brought together by an interest and passion for impact investing.

This resulted in conversations that frequently needed translation (No, structured banking does not deal with the architecture of banks!) but it also meant that people were exposed to different points of view.

This also meant that there was space for a deep-dive into the details of impact investing as well as an opportunity to learn about innovative organizations using SMS technology in developing countries.

Another feature of the conference were the participant-driven Open Space sessions. I was able to attend two of these sessions, which were “held” in an Unconference format. The first described the work of the World Bank in creating the Development Marketplace. The World Bank Institute created the Development Marketplace over 12 years ago to provide grants to innovative social ventures. Now it is looking to help these social entrepreneurs get commercial investments.

The second Open Space session that I attended was built around the question of providing financing to SME’s trying to build businesses in rural India. We had participants who were eager to start asking questions of those who had already built these links in India. The consensus was that there was lots of opportunity but that one had to proceed by developing partnerships with Indians who were already working in this space (this includes government agencies such as IDBI).

The conference also brought some reflection on the future of SOCAP/Europe. Where is it going next? It seems logical that it will stay physically in Amsterdam (The Dutch have $7bn invested by retail investors in social enterprises through organizations like Triodos Bank and Oikocredit. They are surely the world’s epicenter in social investment).

However will the format remain the same? Will more policy makers and government entities get involved? Despite the lingering questions, we left the conference buoyed by the fact that we were setting the foundation for a larger group of people who were willing to venture forward into the brave new world of impact investing.

SOCAP Report: What Layer Cakes have to do with Social Finance

June 1st, 2011 No comments

This post was written from SBS MBA Nikhil Neelakantan, live from SOCAP/Europe in Amsterdam.

What does a recipe for a layered cake have to do with impact investing?

I would have said “nothing”. That is, until I attended the session titled “Layer Cake Deals”. This panel featured speakers from organizations like Triodos Bank (old hands at impact investing) and ABN Amro (a relative newcomer to the field).

According to the panel, “layer cakes” are created by putting funders with different priorities in the mixing bowl.  That means funders providing grants, subsidies and soft debt can work with risk-taking venture impact investors to create bigger, faster and more scalable solutions to some of the world’s biggest problems.

Triodos Investment Management has developed a fund that adopts this structure to fund agricultural entrepreneurs in the developing world.  Governments and social investors form the first layer of the cake, providing external guarantees against  default. Social investors seeking lower returns form the second layer, providing subordinated debt. Triodos Bank provides the final layer with a commercial credit line (which it is comfortable doing, partly because of its confidence in the other layers).

However there is a darker side to layer cake deals. The senior debtors are those who often receive the lowest returns. This can partly be explained by the fact that donor agencies and other social investors are willing  to fund high-risk ventures in order to bring in more mainstream funding, therefore providing a “multiplier effect”.   Thus, how to balance the different “ingredients” of the layered cake is a discussion certain come up at impact-investing conferences and offices of funders across the world.

SBSers everywhere

SOCAP has made realize once again that Saïd Business School is extremely well represented in the impact investing space.

I have met practitioners, speakers and leaders of social enterprises who are alumni of the Business School. Some of my “networking time” was spent swapping stories with other SBS’ers about everything from rowing to exams (Am I glad that we don’t have to come back for exams in August that cover material taught over one year!)

My classmates – including budding entrepreneurs building social enterprises in Chad and India – are also representing SBS at SOCAP.  I am impressed by the reach of this strong and cohesive group of former and current students – and I am looking forward to being part of this contingent in the years to come.

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SOCAP/Europe kicks off

May 31st, 2011 No comments

Amsterdam plays host to the most popular party in Europe this week- the 2011 SOCAP/Europe Conference.

We’re thrilled that several of our Oxford MBA students and faculty have the opportunity to attend the event and help out our friends over at SOCAP.   They’ll be keeping us posted on all the latest and their perspectives on the gathering.

If you can’t make it to Amsterdam, be sure to follow along online and keep up with all the buzz on twitter at #socapeurope (Tweets are a’flying!). You can also watch the entire event via livestream.

We’re excited to see what comes out of the gathering – a few hours in, and already looks like exciting things. For one, check out the newly released Social Investment Manual by the Schwab Foundation.  Looks like a must read.

For more on the event, here’s Nikil Neelakantan, an Oxford MBA who is taking it all in live.

SOCAP, the conference at the intersection of money and meaning, came to Europe last night at the Beurs van Berlage in Amsterdam. Since I was volunteering at the conference, I was unable to witness the  keynote speech by HRH Princess Maxima, UN Secretary General’s Special Advocate for Inclusive Finance for Development.

The speech and the plenary session, “This moment in Europe, This moment in the World” were attended by a crowd of over 600 people.

Also, over 50 social entrepreneurs were  recognized for their achievements with the SOCAP scholarship. The Innovation Showcase was a venue for these entrepreneurs to present their work. The most popular one seemed to be a model of a Sustainable dance floor from Enviu, a Dutch social enterprise!

I am  definitely looking forward to tomorrow’s lineup of talks now!