impact investing in healthcare
Healthcare infrastructure in Asia
Globally, our healthcare systems are under pressure. The COVID-19 outbreak strikingly underscored the need for strong, resilient and sustainable healthcare systems globally. Health system challenges are significant enough in highly developed countries; the challenges are enormous in low- and middle-income countries where physical infrastructure and human resources are traditionally limited. Moreso, rapidly changing lifestyles, chronic diseases and urbanisation has put high-quality healthcare out of reach for a large part of the population. This remains particularly true in emerging market countries in Asia and Africa.
Van Lanschot Kempen (VLK) is a Dutch asset manager that invests with the purpose of creating and preserving wealth for its clients and for society in a sustainably way. VLK with their Private Global Impact Solutions Pool have invested under the theme of “Basic Needs and Well-Being” targeting SDG 3, Good health and well-being.
The investment Quadria Capital Fund III looks to provide healthcare facilities for middle- and low-income families in south-Asia countries including India, Malaysia, Vietnam and Indonesia. Additionally, these investments are made to set-up hospitals and medical laboratories as well as ensuring that there’s always availability of necessary medical devices and apparatus. The companies that will be invested in are selected based on their ability to generate not only market return rates but also generate a social impact.
Impact investments in healthcare have an direct impact with increased access to quality healthcare to underserved populations. Morever, these investment strenghten the portfolio by providing means of diversifications while keeping in check ESG factors such as good governance and environmental care.
In such investments, setting outcome-oriented and measurable goals is important. Additionally, demonstrating the achievement on impact KPI’s by providing clear reporting on a quarterly and annual basis relating to focus impact areas is key to ensuring that real impact is generated without straying away from the mission.