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Microsupport Participation Fund
Participate in Impact
By Tayfun ÖZKANCFO, Turkish Red Crescent SocietyBoard Member, TRC Asset Management Co.
November 20, 2019
Contents
1) Sustainable Development Goals and Turkey (p.3-4)2) GIFIIP and impact investing (p.5-8)3) Microsupport Participation Fund (p.9-12)4) Summary (p.13)
Everything for Global Benevolence…
Sustainable Development Goals
Increasing Turkey’s Contributions to andVisibility in the Global Development Agenda
• 841. International efforts to finance development and to increase the role of private sector in development will be actively supported.
• 841.1. The institutional and legal infrastructure will be built, and the international efforts will be supported in this regard for Turkey to attract impact investing, Islamic finance and socially responsible financial resources more.
• 841.2. The public-private partnerships will be promoted to create the legal and financial basis to support entrepreneurs who design innovative and technology-based solutions to developmental problems.
Turkey will also contribute.
11TH DEVELOPMENT PLAN (2019-2023)
PRESIDENCY OF TURKEY, PRESIDENCY OF STRATEGY
AND BUDGET OFFICE
It can be achieved via a global platform.
IICPSD(UNDP Istanbul
International Center for Private Sector in Development)
IsDB(UNDP Istanbul
International Center for Private Sector in Development)
Participation(a.k.a. Islamic) FinanceImpact Investing
By utilizing impact investing…
+ Financial Return
+ Positive Social Impact
Philantropy
Conventional Investing
Impact Investing
Blended Finance
Private Capital
Development Capital
…that will draw interested investors.
%20 %16%64
GIIN Annual ImpactInvestor Survey 2018
Finance is evolving.Since the establishment of modern finance to date, the third grand wave is underway. We can ride this wave and by successfully implementing the synthesis of participation finance and impact investing, we can set an example at a global scale.
INGOs Treasury Banks/Holdings
Investment Committee(including external members)
Consultancy Services forBusiness Model Design
It can be listed on BIST
Independent Custodyof Fund Assets
Independent Audit
Entrepreneur
Project 2Entrepreneurs
(Partners)
Musharakah
Mudaraba Murabaha
AssetManagement Co
Consultants(ICEE)
Solution Partners
Investors
TAKAFUL
Multilaterals
Deal Generation andProject Management
in the Field
Entrepreneur
Entrepreneur
Entrepreneur
Entrepreneur
Microsupport Participation PE Fund
MicrosupportParticipation
PE Fund
Project 3Project 1
Commitments
Fund, structure distinct from grants…
General Refugees
Fund Tenure Open ended Close Ended (7-10 years?)
Target Size Indefinite (open ended) Definite (US$50 M)
Ticket size US$100,000 US$500k – 5 M
Type of Investment Capital and other participation based finance methods
Priority Sectors Sustainable agricultureRenewable EnergyAccessible Basic Services(shelter, health, education)
As well as:Sectors that can expand on the existing vocational capacities.
TRC and other humanitarian agencies are used to distributing grants. Investing forimpact is a different mentality. We shall provide, still in the name of benevolence, financial support, but (1) for a specific production, business and (2) when income is generated, we shall claim back the investors’ share of the profit justly.
…new mentality.Not only teaching how to fish…
…but also providing fishing line, bait, bucket …
- Developing a business model that is suited to those in need, the geography, market realities
- Setting up a business with the necessary legal, organizational and commercial infrastructure
- Competitive raw material and material acquisition- Marketing, sales support- Emptio Venditio Agreements with big players.- Know-how exchange and partnerships with similar
businesses
…and establishing a sustainable ecomonic structure (ecosystem) where they can sell the fish they catch….
Kızılay can do this:
Strengthen social resilience via economic empowerment
With its…400+ Branches and rep. offices7500+ Personnel60,000+ Volunteers16 Community Centers
Turkish Red Crescent can organize itself to generate and structure deals, check on the credibility of potential social entreprenuers, disburse the required equity, follow up the projects, measure the impact, and report on the progress.
In Summary… For Global Benevolence: Sustainable Development Goals were developed. Turkey has committed to contribute to the SDGs For this objective, we can partner up with international organizations Impact investing and participation finance concepts and tools can be utilized. Global financial trends are very much supportive of this approach. Following the waqf civilisation, the «participation in impact via private investment»
approach can be the sustainable model for financing social entrepreneurship forthe next centuries.
Thank you…Participate in Impact
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