In addition to pursuing a high risk-adjusted rate of return across all of its investments, Schulze Global also aggressively pursues a parallel non-financial objective – the Double Bottom Line (DBL) – by considering impact in the form of job and wealth creation, community revitalization, macroeconomic impact, environmental protection, governance enhancement, knowledge transfer, government revenue support, and sustainable development. Schulze Global believes that the definition of “true success” is financial profit complemented by tangible gains for all stakeholders.
Schulze Global’s DBL process begins with its frontier focus. By investing in frontier markets that are otherwise overlooked by the global investment community, Schulze Global is able to contribute to economic development in some of the world’s least developed countries.
Once in a market, Schulze Global seeks to identify sectors and companies where it can achieve maximum DBL impact. Finally, once an investment is made, Schulze Global works with its portfolio company to put in place a customized DBL action plan tailored to the circumstances of that particular company and the sector in which it operates.
Schulze Global believes firmly that its DBL process actually enhances the return on its investments. By helping its portfolio companies implement more rigorous policies around environmental protections, governance, social considerations, and other related areas, Schulze Global makes these companies more attractive targets for investment. Foreign buyers (in the event of a trade sale) and public markets (in the event of a public listing) assign a premium to companies that have in place robust environmental, social, and governance practices.
In addition to the above, Schulze Global will not consider investments in arms and weapons, diamond mining, distilled spirits, or gambling.
For more details on Schulze Global’s approach to Impact Investing, click here.