Capria takes an innovative approach to add value to the impact investing ecosystem. One way Capria does this is through the Capria Network, a deep trust and high collaboration peer network of emerging market fund managers committed to deliver superior results.
Did you know that the problems faced by early-stage fund managers across emerging markets are somewhat similar? The most cited of these problems is fundraising. The experiences of a fund manager, be it from Africa, Asia or Latin America when it comes to fundraising see some definite parallels.
Is it possible then, to create a collaborative and integrated ecosystem where these fund managers come together to overcome these problems and challenges together?
The Capria Network today, has a total of 16 fund managers from South and Southeast Asia, Sub-Saharan Africa, MENA, and Latin America. All of these fund managers are experienced investors focusing on early-stage investing in their region. They are the rising stars of today and tomorrow’s billion dollar funds. Being a part of the Capria Network provides a high-trust work environment for these fund managers to discuss; deliberate and chalk out strategies to tackle their problems. Trust and peer-to-peer learning have helped these fund managers grow faster and in a shorter span of time.
What does collaboration mean for Capria Network members?
If you’re a first-time fund manager, the process of raising funds is a definite challenge. You need to get a lot of details right, need to know where to go and who to approach in your region. Capria Network is comprised of both first time managers and managers raising their second, third, or fourth fund. Fund managers in the Capria Network help each other through the “sharing for growth and profitability” attitude.
Building network connections and navigating through local investor landscapes isn’t easy. Increased support and direction are a big need for an early stage fund manager. One such first-time fund manager investing in pioneers scaling quality education in Latin America is Prismapar. Their problem related to guidance was solved with the support of another fund manager from the Capria Network, Adobe Capital. Adobe’s 14 years of on-the-ground experience, has played a vital role in helping Prismapar navigate through successful and efficient fundraising.
The Adobe team was forthcoming and open with sharing their current LPs in Mexico and coached Prismapar on the arguments and processes needed to close investors. They also helped Prismapar with templates for approaching the DFIs and other local Mexican investors, pitching to other investors, negotiating, etc. Similar to Prismapar, other Latin America network members including Capital Invent benefitted from Adobe Capital’s willingness to share and guide.
Adobe’s, Prismapar’s, and Capital Invent’s continued success is an outcome of the many ways the network fund managers are helping each other. Some notable network activities are:
- Sharing leads and making introductions to LPs – Introductions and leads from the right person with a strong relationship can help fund managers build the necessary rapport for fundraising. As a part of Capria Network, over 30+ personalized-cum- curated introductions have been led by fund managers for their other network peers. A direct introduction to an LP which would have otherwise needed numerous rounds of calls just jumped to the top of the investor’s queue due to one strong introduction email. A typical introduction happens within regions, and at times depending on needs and available resources, these introductions are done across regions as well.
“We have benefited from Adobe’s experience and advice with fundraising in Mexico. They have provided us with valuable input by sharing their process and arguments to close relevant LPs, and furthered our understanding on the specific areas of interests and alignment with local investors – it has helped shorten our conversations, sharpen our pitch and follow-up with these investors”, said Fernando Valenzuela, Managing Partner, Prismapar.
- Open forum to discuss fundraising opportunities and LP interests in regions – Trust is an important aspect of Capria Network, and network members discuss their problems, interests, and strategies with each other. Capria has a curated suite of tools and databases to enable global connections. fund managers have access to over 400 qualified investor leads.
- Each of the LPs are listed by fund manager who is in contact with the LP, network members ensure they get the investor’s approval before sharing the contact. Capria operates on a double-opt in philosophy so that we can retain high trust and openness. Based on the events the fund managers wish to attend, they can get the contact and insights about attending LPs from others in the network. Getting a fellow fund manager’s view is extremely valuable as it leads to a shorter fundraising process as the pitches are sharper, more targeted and LP relevant; increasing the likelihood of closing investors. We value transparency so the LP and fund manager have to be open about the introduction.
- Showcasing each other locally – Organisations are known through their people, and Capria Network is known through its fund managers. Fund managers showcase each other to relevant / potential investors. For example, Performa from Brazil has been invited to local events by fund managers around the region in Chile, Mexico and Colombia, as panelists and participants in their local conferences. As a result, they have developed deeper connections in the ecosystem and were introduced to potential LPs through this process.
“Being invited to regional roadshows has led to introductions with local institutional investors, helped in establishing our brand name in other countries as leaders in the Brazilian investment ecosystem as well as built deeper connections with other Capria Network FMs”, adds Eduardo Grytz, Managing Partner, Performa Investimentos, a member of Capria Network.
All Capria Network fund managers have access to, and contribute to significant shared resources and expertise for a fund set up, fund operations, access to capital, and most importantly, peer learning. This deep collaboration has enabled fund managers to successfully invest USD $259 million in 157 companies and achieve 16 profitable exits to date. By the end of 2019, the collective AUM of the Capria Network is expected to grow to more than USD $750 million.