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Bound to Impact: a best practices guide to term sheets in African Impact Investing deals
This study focuses on the Impact Investing industry in sub-Saharan Africa through a comparative analysis of three industry-leading institutions' term sheets. A key output of this exploratory research is the development of a best practices guide to social and environmental covenants (clauses included...
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| Format: | Thesis |
| Language: | English |
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Research of GSB
2018
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| _version_ | 1867613216545177600 |
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| access_status_str | Open Access |
| author | Pepper, Nicholas |
| author2 | Patton, Aunnie |
| author_browse | Patton, Aunnie Pepper, Nicholas |
| author_facet | Patton, Aunnie Pepper, Nicholas |
| author_sort | Pepper, Nicholas |
| collection | Thesis |
| description | This study focuses on the Impact Investing industry in sub-Saharan Africa through a comparative analysis of three industry-leading institutions' term sheets. A key output of this exploratory research is the development of a best practices guide to social and environmental covenants (clauses included in the term sheet). The researcher has compiled primary data through practitioner interviews; secondary data was compiled by analysing executed legal documents and templates. The process was conducted with academic rigour in order to categorise and compare specific information. Preliminary research involved the researcher exchanging with a DFI and two commercial Impact Investors. The DFI provides both equity and debt, whereas one of the commercial Investors specialises in private equity and the other in private debt. The institutions are industry agnostic. The study has the objective to test two linked null hypotheses: Impact Investors do not align their terms sheets to their values; and Impact Investors do not require that certain clauses be systematically included in order to protect their interests Through case studies, the research initially develops on the key elements of an equity term sheet and provides a fictitious debt term sheet as a reference. Equity and debt legal documents are compared and analysed independently. After having isolated and analysed social and environmental covenants, the researcher concludes that neither hypothesis can be rejected. Further research is recommended limiting the scope to a specific industry or a specific asset class. Understanding and comparing Development Finance Institutions' methods would be of value. A quantitative analysis would isolate the success factors and appropriate constraints on the legal documentation in order to maximise financial and social and environmental returns. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/28983 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:37.404Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Research of GSB |
| publisherStr | Research of GSB |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/28983 Bound to Impact: a best practices guide to term sheets in African Impact Investing deals Pepper, Nicholas Patton, Aunnie McPherson, Sharron Development Finance This study focuses on the Impact Investing industry in sub-Saharan Africa through a comparative analysis of three industry-leading institutions' term sheets. A key output of this exploratory research is the development of a best practices guide to social and environmental covenants (clauses included in the term sheet). The researcher has compiled primary data through practitioner interviews; secondary data was compiled by analysing executed legal documents and templates. The process was conducted with academic rigour in order to categorise and compare specific information. Preliminary research involved the researcher exchanging with a DFI and two commercial Impact Investors. The DFI provides both equity and debt, whereas one of the commercial Investors specialises in private equity and the other in private debt. The institutions are industry agnostic. The study has the objective to test two linked null hypotheses: Impact Investors do not align their terms sheets to their values; and Impact Investors do not require that certain clauses be systematically included in order to protect their interests Through case studies, the research initially develops on the key elements of an equity term sheet and provides a fictitious debt term sheet as a reference. Equity and debt legal documents are compared and analysed independently. After having isolated and analysed social and environmental covenants, the researcher concludes that neither hypothesis can be rejected. Further research is recommended limiting the scope to a specific industry or a specific asset class. Understanding and comparing Development Finance Institutions' methods would be of value. A quantitative analysis would isolate the success factors and appropriate constraints on the legal documentation in order to maximise financial and social and environmental returns. 2018-11-02T09:31:34Z 2018-11-02T09:31:34Z 2016 Master Thesis Masters MCom http://hdl.handle.net/11427/28983 eng application/pdf Research of GSB Faculty of Commerce University of Cape Town |
| spellingShingle | Development Finance Pepper, Nicholas Bound to Impact: a best practices guide to term sheets in African Impact Investing deals |
| thesis_degree_str | Master's |
| title | Bound to Impact: a best practices guide to term sheets in African Impact Investing deals |
| title_full | Bound to Impact: a best practices guide to term sheets in African Impact Investing deals |
| title_fullStr | Bound to Impact: a best practices guide to term sheets in African Impact Investing deals |
| title_full_unstemmed | Bound to Impact: a best practices guide to term sheets in African Impact Investing deals |
| title_short | Bound to Impact: a best practices guide to term sheets in African Impact Investing deals |
| title_sort | bound to impact a best practices guide to term sheets in african impact investing deals |
| topic | Development Finance |
| url | http://hdl.handle.net/11427/28983 |
| work_keys_str_mv | AT peppernicholas boundtoimpactabestpracticesguidetotermsheetsinafricanimpactinvestingdeals |