Private Banking|Professional Solutions|Investment Management|Investment Banking|About us
Van Lanschot Kempen Logo
  • Products and solutions
  • Sustainability
  • Fund Library
  • Insights
Professional Investor - Netherlands
7 july 2021

Global Impact Pool Quarterly Investor Letter

We are pleased to report on the first quarter of 2021 for Kempen’s Global Impact Pool, in which we continued to deploy capital towards the Global Impact Pool’s mission, which is to make investments that positively contribute to solving global problems around the food, water and climate nexus and five Sustainable Development Goals.

Specifically, we aim to address the following impact themes: 

  1. Basic needs & well-being: the provision of basic goods & services for the underserved including water and health & wellbeing;
  2. SME development & decent work: creating decent jobs with fair employment practices to eradicate poverty; 
  3. Circular economy: Support sustainable consumption and production aimed at doing more and better with less, and; 
  4. Climate & energy: Contribute to abundant clean energy and reduction of CO₂ emissions. 

Bearing in mind our mission, there is also the explicit target to generate a market rate financial return.

Impact highlights


Financial return

The Kempen Global Impact Pool (GIP) achieved a return of -1.1% for the FA fund class in the first quarter of 2021. 
The GIP entered its fourth year of existence in 2021 and the investment partners, appointed by the GIP for making impactful investments, have taken good steps in investing the capital committed by the GIP. Since its inception, the GIP has neutralized the so-called J-Curve effect* by investing in an impactful basket of green bonds, pending the call of committed capital by our investment partners. This has largely prevented a negative return since inception. GIP's returns are expected to better reflect the value development of underlying investments in the coming years, as the portfolio companies continue to develop, and holdings are sold profitably.

  • a J-Curve effect occurs in private markets (Private equity, infrastructure, etc.) funds where the cash flow is negative in the first years due to investments and fund costs, after which the cash flow is positive in the second half of the term of the fund  due to distributions and divestments of interests

Developments portfolio

The COVID-19 pandemic is still dominating world news. Although the ultimate economic and social consequences are not yet clear, the Global Impact Pool and its investments continue to develop well so far, confirming the relevance of the companies invested in. The investment partners appointed by the Global Impact Pool prove their worth by being selective with their investments, carefully assessing risks and opportunities.

The GIP ended the first quarter with assets under management of €116 million. The GIP management team has developed a very promising pipeline of new investments in recent months, with which the new assets under management can make impactful investments. An investment in Trill Impact was completed in the first quarter of 2021. Trill Impact is a Swedish Private Equity house that invests in impactful companies active in the field of energy transition, circularity and access to education for all. 

The management team of the Global Impact Pool experienced a change this quarter. Marjoleine van der Peet has left Kempen Capital Management to focus on new challenges outside the organization. The search for a replacement for Marjoleine is currently in full swing, we expect to be able to introduce a replacement later this year.

The overview below provides a brief overview of the most important developments in the portfolio this quarter per Impact theme.

Basic needs and well-being: African pharmacy chain Goodlife Pharmacy had a good start to the year, seeing its sales recover to pre-pandemic levels. In March, Kenya, the main market for Goodlife, was tightened up as a result of a sharp increase in the number of COVID-19 deaths. Opening hours of shops were limited and this was at the expense of Goodlife's turnover. Medgenome, the market leader in genetic diagnostics in South Asia, continues to develop and play an important role in the fight against COVID-19. Medgenome is part of a select group of labs appointed by the Indian government to conduct COVID-19 testing in the country.

Investments within the theme of SME development and decent work developed well this quarter. A significant part of the GIP's investments within this theme focus on (digitized) financial services (fintech) in developing countries. Financial inclusion is an important goal in itself, but also in achieving other SDGs. WorldRemit, a company that facilitates cross-border payments in emerging countries, continues to grow rapidly. The impact of WorldRemit is significant: with the company's services, migrant workers can transfer (part of) their salary at very low cost to their families in poor regions, improving the standard of living there. Several new investments were added to the GIP portfolio by our investment partners this quarter, including CowryWise in Nigeria. CowryWise is a digital platform that enables savings and investments from just USD 0.25.

One of the GIP's investment partners within the Circular economy theme focuses on sustainable agriculture and continued to provide loans during the quarter to, among others, cooperatives that give small-scale farmers access to better-paid markets that offer greater financial and operational stability. As usual for the first quarter of the year, most of the loans provided by this investment partner were in Latin America, where the coffee harvest provides a capital need for farmers in countries such as Costa Rica and Colombia. In Africa, loans were made to farmers active with cashew nuts, cotton and sesame.

With its investments within the Climate and energy transition theme, the GIP contributes to the transition to more sustainable energy sources. During the quarter, an investment partner of the GIP made good progress with the development of wind farms and solar energy parks, which will add sustainable capacity to the energy network in the foreseeable future. Approximately 35% of the investments by this partner relate to solar energy, 45% to Onshore wind projects and approximately 20% to Offshore wind projects.

Download our Quarterly

  • 2021Q1 Global Impact Pool quarterly report

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance provides no guarantee for the future.

There’s a saying in Dutch, Kom verder, it means many things and it’s our business philosophy. It captures the way we work with clients but also the way we steer our investee companies to deliver shareholder value through active engagement.

Fully focused on your future

Private Banking
  • Offices
  • Entrepreneurs
  • Healthcare
  • Executives
  • Business professionals
  • Wealth management
  • Conditions
  • Private Banking - Belgium
  • Private Banking - Switzerland

Professional Solutions
Investment Management
Investment Banking

© Van Lanschot Kempen Investment Management NV 2024Security and fraud awarenessPrivacy & cookiesDisclaimer