The elea Way - Preview

elea’s FOUNDATION AND OPER ATING MODEL

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examples of impact value creation initiatives are presented, best prac- tices are documented, and relevant experiences are exchanged. This helps establish an institutional capability that not only contributes to maximiz- ing impact with the companies in our portfolio but also adds to our cred- ibility as we develop new investment opportunities. Typical topics for such luncheon meetings include these: •• How to effectively align leadership teams and their supervisory boards around a social purpose, vision, and values. •• How to develop and execute growth strategies for scaling up a business. •• How to define an ambitious, yet realistic, five-year vision with con- sistency around social impact goals, financial objectives, required resources, and effective organization and leadership. •• How to strengthen marketing and sales effectiveness. •• How to navigate through crises. •• How to develop and implement capital-raising strategies. •• How to build effective leadership teams and governance structures. These luncheon discussions, typically, lead to the documentation of a specific method or instrument for practical applicability, with real-life examples attached. Exit planning and realization Before elea enters into an investment agreement, options for exiting a commitment at some stage after several years are discussed, either together with the elea entrepreneurs and/or internally. Following the principle of additionality, elea should commit its financial and non-financial resources where it can make a difference, while avoiding long-term structural dependencies. As investee companies develop, grow, and mature, elea’s potential to make a difference diminishes. Angaza and Coffee Circle are both examples where regular institutional investors could be attracted and where philanthropic impact investing is no longer at the forefront of their requirements. While elea has had some successes in exiting its investments, real- izing profitable exits out of equity stakes in impact enterprises, in par- ticular, has proven to be challenging. As we hear from other investment