How does the investment process work?

A professional, staged investment process ensures that we achieve the highest possible social impact. We invest the funds entrusted to elea by philanthropic investors and those of the Foundation itself in carefully chosen and verified impact ventures. A well-established, comprehensive process defines clear goals as the basis for a long-term, cooperative partnership between elea and our impact ventures.

Every year, elea examines approximately 900 potential investment opportunities. We find out about these impact ventures in many ways. Sometimes, the entrepreneurs contact elea directly. In other cases, a first contact takes place via our global network. An elea team member can also become aware of a venture during one of the regularly organized scouting tours in target countries. Following an initial analysis and first personal discussions, if an impact model is deemed promising, a comprehensive due diligence and detailed examination will occur. It can last from several weeks to several months and, in all cases, includes an assessment on-site. The multi-level process ensures a customized structuring of the financial and contractual agreements.

Along with our portfolio ventures, we prepare a “Value Creation Plan” that includes entrepreneurial and social impact-related goals and lays the foundation for a close cooperative partnership over an investment period that typically lasts about five to eight years. We only get involved when a venture has fulfilled all investment criteria and if we can significantly contribute to its development. In accordance with this, the investment process is highly selective, with five to ten investments annually.

elea will only evaluate an investment opportunity in detail if the following criteria are fulfilled:

• Focus on absolute poverty
• Lasting improvement of individual living conditions
• Entrepreneurial, long-term, self-supporting approach
• “Proof of concept” has already been established
• Credible entrepreneurial leadership
• Contribution from elea beyond financial investment
• Conformity with the strategic focus areas of elea