2020: DPI Disclosure Statement Operating Principles for Impact Management (OPIM)
Overview of DPI
Development Partners International, or DPI, is a leading private equity firm focused on investing for high returns and impact/ESG, believing that each support the success of the other. As an investment strategy, DPI’s three ADP fund invest in companies that provide goods and services to Africa’s rapidly expanding middle classes. DPI was founded on the belief that sustainability delivers impact, and therefore it seeks to generate strong financial returns for investors by creating competitive companies, while also focusing on the benefits these companies deliver for societies and the environment. DPI believes that top returns and true impact are possible and invests with this lens. While DPI’s impact and ESG work is led by two senior professionals the entire DPI team is trained on impact and ESG work, the combination of returns and impact/ESG being part of DPI’s “DNA” since inception.
While DPI invests commercially, and always strives to deliver a strong equity return for the Funds’ investors, it has, since inception, been equally committed to driving and reporting developmental impact and ESG value add matters. DPI has sought to identify and actively drive ESG-related value add interventions to enhance Portfolio Company performance, as well as to leverage and maximise the developmental impact created by the products and services of Portfolio Companies the Fund is invested into. This is based on its belief that taking an intentional and direct engagement approach to driving value add and impact supports it in accessing capital, enhancing its reputation, driving value for stakeholders and, ultimately, improving financial returns.
The recently developed integrated Impact and ESG management system was adopted in January 2020 and provides an innovative and practical ESG and Impact Management Framework for effective incorporation and management across DPI’s investment processes and decision-making, as well as in the day-to-day business activities of the firm. It guides how DPI shall drive the on- going ESG and Impact performance of the Fund’s investment portfolio, as a whole and at individual Portfolio Companies. The management system was designed to meet the Operating Principles for Impact Management and defines the internal ESG and Impact Core Commitments, Requirements and Standards that the Fund has established and that its Portfolio Companies are expected to adhere to.
Commitment and Alignment with the Operating Principles for Impact Management
Development Partners International (“DPI” or the “Signatory”) hereby affirms its status as a Signatory to the Operating Principles for Impact Management (the “Principles”).”
This Disclosure Statement serves to fill DPI’s obligations pursuant to Principle 9 of the Principles and confirms alignment of African Development Partners III (the “Covered Assets”) with the nine Principles commencing 20 September 2019 and in the 12 months which comprise this reporting period. The total assets under management in alignment with the Principles is US$ 609m as of publication of this disclosure statement (23 September 2020).
Principle 1: Define strategic impact objective(s), consistent with the investment strategy
While DPI invests commercially in multiple sectors across Africa, and always strives to deliver a strong equity return for the Funds’ investors, it has, since inception, been equally committed to driving and reporting developmental impact and ESG value add matters. In this regard, it seeks to maximise the developmental impact created by the products and services of Portfolio Companies the Fund is invested into. This is based on its belief that taking an intentional approach to driving value add and impact supports it in accessing capital, enhancing its reputation, driving value for stakeholders and, ultimately, improving financial returns.
