Why Toniic members invested in Advance Global Capital
Small and medium businesses experience cash flow problems — it’s a universal problem. The smaller a business, the less power and fewer options it has, and the more vulnerable it is to external forces, such as a bank’s willingness to provide fair financing. In emerging markets, the imbalance of power for small businesses and inability to leverage economic options is compounded by strict lending practices, which often disproportionately affect the women of these communities, where the need is the greatest.
Globally, as reported by the World Economic Forum, more than 700 million women remain unbanked, while over 2 billion women worldwide lack economic rights on par with men. This highlights the significant challenges women encounter in accessing financial services and obtaining business loans.
Advance Global Capital
Advance Global Capital has financed around 48,000 SMEs and extended over $7 billion in financing
Advance Global Capital (AGC), a global impact investment management company, believes that private capital, when invested well, can be a force for good. Working with local financing partners, AGC provides fair access to capital for small businesses in underserved communities worldwide so they have the credit they need to build their business.
The financing that AGC provides through its fund is accessible by the smallest of businesses with the least access to bank financing — such as women and other minority-owned or led companies. The average transaction size is below $5,000 and around 40% is below $500. AGC provides tailored financing to non-bank financial intermediaries who then deliver flexible, transparent, inclusive working capital to SMEs in their local country.
AGC firmly believes that the best way to reduce poverty is through sustained economic growth and that private capital, when invested well, does good. People who have more than enough money to take care of themselves and their families have a duty to invest in solutions that make the world a better place. The firm’s mission is to support local, responsible and inclusive economic growth by delivering well-structured financing options that help underserved small businesses thrive whilst delivering decent financial returns for investors.
Advance Global Capital in numbers
Cumulatively since inception, Advance Global Capital has:
- Financed around 48,000 SMEs, 45% of which are women-led SMEs
- Extended over $7 bn in financing
- Supported the creation of over 650,000 new SME jobs in over 60 countries
Portfolio Examples
Timely Finance Improves the Romanian Tax Experience
One example of how the firm has assisted an SME, is the woman-owned firm DC Tax in Romania, which services clients through consulting and tax advisory support. Tax regimes are often difficult to navigate in many countries and the burden can be especially cumbersome for small businesses. Through a local NBFI, the firm’s woman owner is able to access easy and transparent financing solutions. Her story further underscores the importance of why AGC is especially helpful in providing reliable and inclusive finance to SMEs, especially those led by women. Full story here
From Beans to Bright Futures: Empowering Uganda’s Coffee Community
CECOFA is a leading force in Uganda’s coffee sector, uniting farmers under the leadership of Executive Director, Mr. Bule Ronald. CECOFA boasts a predominantly female workforce, embodying their commitment to gender equality and community empowerment. The scale of coffee exportation in Uganda is considerable, generating the need for financing resources not only for payments but also for acquiring essential equipment, receiving timely payments and fulfilling orders to meet the demand for exports. Full story here.
Safeguarding traditions and building community — Carnaval de Barranquilla
AGC has supported SMEs in helping to fuel economic impact through the Carnaval de Barranquilla festival in Colombia. As a significant driver of invaluable tradition and heritage, Carnaval de Barranquilla is one of the largest festival organizations in the world. Through AGC’s NBFI, they have been able to help promote productivity and services, driving opportunity for actors of the festival generating significant impact for the local Colombian people. In addition, the Museo del Carnaval, a woman-owned heritage museum, demonstrates how this heritage is preserved and shared with the local community of Barranquilla. Full story here.
Advance Global Capital and Toniic
As many as 8 Toniic members are investors in Advance Global Capital.
Advance Global Capital was founded by Toniic member Janet Mckinley.
A former Chair of Oxfam America, Janet and her family Office Money in Motion have been involved in the scale-up of microfinance and self-help women’s savings groups for over 30 years.
In 2012, she shifted her focus to supporting female entrepreneurs in the formal economy and launched Advance Global Capital as an impact investment company to enable investors to put their money to work investing in hard-working small businesses (especially those led by women) in underserved communities around the world.
Before launching to outside investors in 2015, the family office piloted a few different approaches. Ultimately, they settled on the current model, providing funding and supporting local financial institutions that have relationships with small businesses by providing them with critical access to working capital.
Janet and Money in Motion have been members of Toniic for over 7 years.
As many as 8 Toniic members are investors in Advance Global Capital, including the Cordes Foundation and Ed Brakeman, who have been investors for over 7 years.
Advance Global Capital Capital been an integral part of our private credit portfolio
Eric Stephenson, Cordes Foundation:
“Since 2017, the Advance Global Capital has been an integral part of our private credit portfolio, achieving risk-adjusted market-rate returns with dependable liquidity features, while simultaneously deploying capital to advance financial inclusion and economic opportunities for women, globally.”
Ed Brakeman:
“I’ve been an investor with Advance Global Capital for more than 7 years. My experience has been 100% positive. Risk management, portfolio composition and investment returns have been strong throughout that period including during the tumultuous pandemic.”
About Toniic:
Toniic is a global community of private asset owners seeking to steward wealth and use influence to enable a thriving world. Our members — more than 500 high net-wealth individuals, family offices and foundations from more than 25 countries — are active impact investors and philanthropists, for whom Toniic provides education, investment opportunities, impact support, events, and community. Toniic also seeks to build the field of deep impact investing, moving money and mindsets and leading by example.
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