Impact Investing

Compelling Financial Returns and Meaningful Impact

At 57 Stars, we are incredibly fortunate to witness purpose-driven companies that are finding profitable solutions to global challenges every day, while also delivering outsized shareholder returns.

Our goal is to provide investors with access to such opportunities through an institutional quality strategy that leverages the firm’s significant investment platform and deep experience in our target markets and sectors.

We seek to make co-investments with best-in-class GPs in our network in high-growth businesses with an inherent positive correlation between their financial and impact drivers. These companies have the potential to generate compelling risk-adjusted returns alongside demonstratable positive impacts. We call this concurrence Impact Alignment. Companies with significant Impact Alignment can generate a virtuous cycle where generating financial success leads to impact at scale.

Strategy Highlights

No financial return tradeoff
Meaningful impact at scale
Rigorous impact & ESG due diligence

Growth investments in emerging markets
Three target themes
Alignment with the Firm’s priorities and values

Focus on Three Impact Themes aligned with Five Sustainable Development Goals (SDGs)

Driven by coincidence of potential out-performance, deep impact, and robust deal-flow derived from 57 Stars platform, we seek to invest along three themes – healthcare, financial inclusion, and environmental sustainability – with a focus on emerging markets. We believe that these sectors represent some of the most dynamic and impactful opportunities. Other themes of interest include affordable housing and education.

Health & Care - Related Technologies

Increase safety, effectiveness, and access to affordable healthcare

Innovative & Generic Pharma
Hospitals & Diagnostics
Biotech & Medical Devices

Environmental Sustainability

Increase access to clean energy and sustainable transport, and support resource efficiency solutions

Sustainable Transport
Sustainable Agriculture
Clean Energy

Financial Inclusion

Improve affordability of and access to financial products and services

Payments: Digital, P2P, POS
Insurance & Insur-Tech
Consumer & MSME Credit

As a result of our growth strategy and comprehensive ESG policies, we expect all investments in our impact-focused funds to support the following SDGs:

We developed a rigorous approach to set target and track relevant impact KPIs to measure our progress toward achieving our impact objectives and the SDGs. 57 Stars is a member of the Global Impact Investing Network (GIIN) and, in developing our impact approach, we relied on the GIIN’s IRIS+ (Impact Reporting and Investment Standards) and the Impact Management Project as best practice.

We understand that any investment can have both positive and negative impacts. We will strive to maximize positive impacts and identify, mitigate, and report on any negative impacts.
We believe negative impacts can be mitigated by ensuring high-quality ESG management systems. Please find more on our approach to ESG here.

Managed by a deeply experienced team with impact roots

The strategy is managed by the same broad investment team that manages 57 Stars’ other strategies. The team consists of more than 15 investment professionals with collectively more than 200 years of private equity experience in the target markets.

Through their experience at 57 Stars and prior to joining the Firm, the members of 57 Stars’ team have successfully sourced, underwritten, and closed a wide range of co-investments and direct investments across markets. Earlier careers of co-founders and some of the senior members of the Team included leading private equity at the U.S. International Development Finance Corporation (“DFC,” formerly the Overseas Private Investment Corporation). At DFC, these professionals were at the forefront of impact investing globally, although the term “impact investing” did not exist at that time.

There can be no assurance that 57 Stars will replicate past results or meet its objectives in the future.