How does ABC Impact Work with Portfolio Companies, Post-Investment, to Ensure it Delivers on its Mission for Sustained Impact?

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Case Study Overview

In 2019, ABC Impact (ABC) was set up as an Asia-focused fund with two design principles - dual underwriting of impact and financial returns, as well as measurable and evidence-backed impact. The protagonists of the case are two of the leaders of ABC, Sugandhi Matta and Tan Shao Ming, Chief Impact Officer and Chief Investment Officer respectively. The case deep dives into two specific portfolio companies - HCAH, an out-of-hospital company based out of India and Chongho Bridge (CHB), an integrated rural services provider based out in China. Both investments were important test cases for ABC’s multi-sectoral, Asia-focused inaugural USD 300 million fund.


This case study showcases how impact was underwritten for the two investments during the due diligence phase and how ABC worked with its portfolio companies post-investment for monitoring the achievement of impact. Post-investment engagement included value-add projects which accelerated or enabled better understanding of the impact these companies were driving. The value-add projects were often supported by ABC from its technical assistance budget. The case also highlights how intentionality is core to ABC's impact strategy and the need to assess investees’ management ability to pursue impact as part of their core business model and inclination to work towards it post-investment. The case also presents the underlying thinking behind ABC’s responsible exit strategy.

 

Teaching Objectives

  1. How intentionality and impact potential are assessed during the pre-investment phase.
  2. How KPIs and reporting methods are used as a tool to identify gaps and keep portfolio companies aligned with the vision of impact.
  3. How impact investors provide technical and management support and help portfolio companies scale impact and business. In this, the focus is to show how the protagonists have actively engaged post investment through continuous monitoring and value add projects.
  4. To understand the importance of a responsible exit strategy.

Interested in the full case study and teaching notes? Reach out to info@ciip.com.sg to find out more. 

This case study was produced by the Centre for Impact Investing and Practices (CIIP), in collaboration with Artha Global. It is developed as a basis for class discussion. It is not intended to serve as an endorsement, source of primary data, or illustration of either effective or ineffective management. This case includes some copyrighted materials kindly shared by ABC Impact for use as case exhibits. The authors gratefully acknowledge ABC Impact’s permission to use these within this case study.


Copyright © 2023 Centre for Impact Investing and Practices (CIIP). Copies may not be made without permission. No part of this publication may be translated, copied, stored, transmitted, reproduced, or distributed in any form or medium without the permission of CIIP.


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