Davidson shares. Jibu, which uses a franchise model to make clean drinking water affordable in East African slums, excites Jim in terms of impact and investing. He adds, “They’re operating well and hitting their targets, so at scale they could positively affect health across Africa and that would make a great investment.” Look into water, agriculture, and energy as additional sectors where impact investing can improve health around the world.
… Innovate on investment models as well.
Healthcare delivery via health clinics was a core focus for Investor Days: Nairobi, and we found many exciting examples of clinics that bring quality healthcare to Kenyan communities. However, concerns emerged about the exit potential for clinic models: What is scale? How big do clinic networks need to grow? Are there prospective acquirers? A visit with Jacaranda Health, a network of maternal and child hospitals in peri-urban areas, inspired Stephanie Wilson to bring her US medical real estate background into her global health impact investing strategy. “Good investments are not all about equity. Jacaranda has a strong model, superior care, and the potential to grow. Obtaining and outfitting their facilities is a huge challenge, so structuring this investment around real estate could help them where they need it most and create an interesting risk/return profile for an investor as well,” says Wilson. Look beyond traditional notions of equity and debt to real estate and revenue-based financing as appropriate capital solutions for compelling global health enterprises.
Compelling global health entrepreneurs…
… Are internationally savvy.
Global health entrepreneurship is a tall order: companies need to understand healthcare delivery, how to grow a sustainable business, and the emerging markets in which they operate. Our trip attendees discovered that Kenya has a growing population that has developed medical and business skills around the world and returned home to build global healthcare companies in the communities they know best. Stephanie Wilson was impressed by Jacaranda Health as a business and by its Chief Medical Officer Faith Muigai, highlighting that “she’s a Kenyan-born, US-trained doctor and business woman who is bringing 20+ years working in the US health system back to Kenya and building a management team that balances the business side of Jacaranda’s hospital system.” Look for entrepreneurs and management teams that understand both their models and their markets.
… Have relationship potential.