The purposes of Grassroots Capital Management are:
- mobilize capital to help eliminate poverty and strengthen communities through investments in small and micro businesses, affordable housing, sustainable agriculture and affordable education, in both developing countries and the US;
- provide private investors with effective, reliable avenues to devote a portion of their resources to these social investments
- actively collaborate with others with shared values and approaches to create innovative and socially responsible solutions.
For over 10 years, Grassroots Capital Management and Caspian Advisors have been leaders in the impact investment space. Starting with the first equity investment in an Indian MFI in 2001, they went on to launch the Gray Ghost Fund, the first private microfinance fund of funds. Through this vehicle, they have been instrumental in the creation of many of the milestone microfinance investment vehicles, including Bellwether, the first Indian microfinance equity fund in 2005, Microvest I, Blue Orchard Microfinance Securities I, ASA International, and Antares. In addition to these they have also launched the India Financial Inclusion Fund, and Prospero Microfinanzas.
During this period, GCM’s focus has been on investments in microfinance in emerging markets in Asia, Latin America and Europe. In recent years it has added investments in “adjacent sectors” such as low income housing and in 2012 will launch a vehicle adding education and sustainable agriculture sectors. In 2013, GCM expects to launch its first initiative in the US impact investment space, focused on sustainable community building in New England.
GCM has worked with a wide range of investors and believes that most private investors can find suitable investment opportunities in the social investment space. However, its experience has also shown that investors must be very clear about their social and financial expectations and requirements, and in response, GCM is incorporating “social first” and “financial first” concepts into its investment programs to help investors formulate and achieve their investment goals.
Grassroots activities are motivated by a belief that those blessed with abundant human and financial resources have an obligation to pursue economic justice and community empowerment both at home and globally. We seek out and collaborate actively with others with shared values.