JPMorgan Chase, DFID and CDC announce $20 million combined investment in Novastar Ventures
9 Apr 2014 10:57 AM
JPMorgan Chase and DFID will invest in promising
businesses in East Africa to kick start growth across the
region.
The
new $5 million investment by JPMorgan
Chase will be matched by an additional $15 million from
DFID’s Impact Investment
Fund (making a total of around £12 million).
Launched in 2013, the fund is managed by the CDC, the UK’s
own development finance institution.
The
investment in Novastar
Ventures will allow it to fund early-stage businesses that provide
essential services to some of the poorest communities in East Africa, such as
healthcare, energy, housing, education and sanitation. It will also allow
Novastar to build on its successful investment in Bridge Academies, which
created 250 affordable schools in Kenya and employed over 3,000
staff.
Justine Greening, Secretary of State for International
Development said:
Our
joint investment will ensure promising businesses get the support they need to
create jobs and deliver much needed services like health and
education.
Sharing our joint knowledge and expertise on development
and sound investment choices will improve the lives of many of the poorest
people across East Africa.
Peter L. Scher, Executive Vice President and head of
Corporate Responsibility at JP Morgan Chase said:
We
are very proud to partner with the UK Government in providing investment to
Novastar and the critically important businesses they support in East
Africa.
Our
firm has made a substantial commitment to supporting market-driven solutions to
some of the world’s most pressing social, economic and environmental
challenges. Novastar’s management team has an accomplished record of
financing start-ups that seek to improve the basic quality of life for people
in East African communities. We’re thrilled that our investment can help
expand their efforts.
Steve Beck, Managing Director of Novastar
said:
We’re looking for the next generation of
exceptional entrepreneurs who are designing and executing innovative business
models to profitably serve low-income consumer markets in East
Africa.
By
supporting these entrepreneurs and the growth of their ventures, we aim to
generate long-term capital appreciation for our investors and significant,
scalable benefits to these consumers and producers. In so doing, we hope to
attract more entrepreneurship and private capital into the emerging economies
of East Africa.
Diana Noble, CDC’s Chief Executive
said:
Impact investments have the potential to transform the
lives of millions of the poorest people in Africa and South Asia. That’s
why I’m delighted that CDC has been able to make our first commitment
from the DFID Impact Fund to Novastar Ventures.
Novastar will now be able to provide early-stage funding
to businesses in East Africa that provide vital jobs, goods and services. When
CDC commits its capital to impact investment, we’re looking for teams,
like Novastar, who are able to raise money from other commercial investors. So
I’m particularly pleased that JPMorgan Chase has joined CDC in backing
Novastar.
Jay
Kimmelman, Cofounder and CEO of Bridge International Academies
said:
We
are delighted to have Novastar join our latest investment
round.
Novastar’s founding partners have supported Bridge
since our very early days. Their values are closely tied with ours –
seeking innovative business-based solutions to sustainably solve some of the
world’s greatest problems. Their investment and their experience will be
invaluable as we enter our next phase of expansion.
The
investment follows DFID’s appointment of Novastar as the first
beneficiary of its Impact Investment Fund in January 2014. The UK’s
£75 million Impact Fund is expected to benefit five million people over
the next thirteen years, by providing capital to fund innovative enterprises
that serve the poor as employees, producers and consumers.
This investment is the latest example of
JPMorgan’s innovative partnerships with governments and NGOs to solve
social and environmental challenges. Since its launch in 2007, JPMorgan Chase
has committed more than $50 million in capital to a number of funds making
investments in Africa and other parts of the world.
Notes to editors
-
Case studies and supporting images of previous Novastar
investments available on request.
-
JPMorgan Chase’s $5 million investment brings
total private sector funding to $10 million in Novastar, boosted by $15 million
in investment from DFID
-
The
US$15 million (approximately £9 million) allocation from the UK
Government is taken from DFID’s £75 million impact investment fund
managed by the CDC. It is part of an overall Impact Programme which aims to
foster the development of the impact investment market in Sub-Saharan Africa
and South Asia and to attract new investors.
-
Find out more at: http://www.theimpactprogramme.org.uk
About CDC
CDC
is the UK government-owned development finance institution that uses its own
balance sheet to invest in the developing countries of Africa and South Asia.
It has net assets of £2.8bn.
CDC’s mission is to support the building of
businesses in Africa and South Asia, creating jobs and making a lasting
difference to people’s lives in some of the world’s poorest places.
Under its strategy, announced in September 2012, CDC provides debt and direct
investment to businesses as well as acting as a fund-of-funds investor. CDC now
only makes new investment commitments in Africa and South
Asia.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.4 trillion and operations worldwide.
The Firm is a leader in investment banking, financial services for consumers
and small businesses, commercial banking, financial transaction processing,
asset management and private equity. A component of the Dow Jones Industrial
Average, JPMorgan Chase & Co. serves millions of consumers in the United
States and many of the world’s most prominent corporate, institutional
and government clients under its J.P. Morgan and Chase brands. Information
about JPMorgan Chase & Co. is available at www.jpmorganchase.com