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Investing in the Latin American Social Sector
We are not writing to you today to sell you on a “hot deal” or a “quick-profit” investment, but rather an opportunity that can generate a great deal of value - social value to be precise. We would like to bring your attention to an organization called NESsT that we believe is making an important contribution to the development of the social fabric of Latin America.
NESsT’s mission is to support “social enterprises,” businesses that create a social benefit, and to foster the financial sustainability of civil society organizations that engage in those businesses. NESsT adapts these market-based approaches to solving critical social needs in communities across Latin America, currently in Argentina, Brazil, Chile, Ecuador and Peru.
For example, in Brazil, NESsT is supporting AHIMSA, a nonprofit organization dedicated to building the technical and vocational capacity and ensuring the labour market insertion of people with multiple sensorial disabilities (deafness and blindness) who often live in isolation with little hope of working and leading independent lives. With support from NESsT, AHIMSA is launching a professional bakery that will employ this target group, and generate revenues to sustain its operations and provide additional services to other multiple sensorial communities. NESsT is supporting other similar social enterprises across Argentina, Brazil, Chile, Ecuador and Peru.
NESsT works in much the same way as our own private equity firms: They “invest” philanthropic capital in their portfolio of social enterprises; they support those organizations with time and advice; and, ultimately seek to exit their investment by ensuring the social enterprise is able to stand on its own feet financially. We believe this approach is one of the best and smartest ways to invest in the long-term development of the social sector of the region.
We would like to ask you to consider joining us in financially supporting the work of NESsT in the 2009 Private Equity Shares Campaign for Latin America. The objective is to raise funds among private equity firms and their advisors including accounting, banking, consulting and law firms.
This year we would like to raise US$150,000 which will be used to support the current NESsT portfolio organizations in Latin America as well as other new social enterprises. We would like to invite you to join us in the campaign by making a donation of at least US$2500. Please see the attached donation form for details on how to make your contribution.
Each of us has had personal experience and direct exposure to the work of NESsT. We can therefore say with confidence that this is a worthwhile investment and will make an impact that will go a long way.
We hope you will help make the 2009 Private Equity Shares Campaign a success by investing in this important initiative to provide opportunities to marginalized communities across Latin America. Please get involved! It’s time that private equity “shares!”
Yours sincerely,
Tim Purcell,
Linzor Capital Partners
Ana Vigon
Carlos García, DLJ South American Partners
Mike Moody, The Ashmore Foundation
Andrew Cummins,
Explorador Capital Management
Felipe Medina,
Goldman Sachs
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The 2009 Private Equity Shares Campaign
WHY you? The campaign targets the Latin American private equity industry (private equity and venture capital firms and their advisors, including accounting, banking, consulting, and law firms) to encourage them to expand their commitment to the region, to its economic and social development, particularly in marginalized communities.
HOW can you participate? Follow the instructions on the donation card for your personal donation. Encourage your firm to make a corporate gift as well.
WHAT will your cash do? Your contribution will help to expand the work of NESsT to benefit marginalized communities across Latin America. The funds raised through the Private Equity Shares campaign will go to support social enterprises in the NESsT portfolio as well as new nonprofits to launch social enterprises:
- a US$50,000 gift will allow NESsT to provide venture grants to five nonprofit organizations to expand their existing social enterprises benefiting more people in marginalized communities;
- a US$25,000 gift will allow NESsT to assist five nonprofit organizations to complete viable business plans;
- a US$10,000 gift will allow NESsT to provide “seed capital” for a nonprofit organization’s new social enterprise;
- a US$5,000 gift will enable NESsT to train 50 nonprofits on the fundamentals of good business planning.
Your gift of whatever size will be put to work making a social enterprise a success!
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WHO are we? NESsT is a nonprofit organization founded in 1997. NESsT works to solve critical social problems in emerging market countries by supporting the development of social enterprises - businesses that strengthen a nonprofit organization’s financial sustainability and maximizes its social impact.
HOW do we do it? NESsT provides consulting and financial support to nonprofit organizations interested in launching a social enterprise. The NESsT team mentors nonprofits, helping them to plan for, launch and better manage social enterprises. NESsT also awards “venture grants” (of up to US$20,000 each) to help nonprofits cover the costs of launching or expanding social enterprises.
WHY do we do it? By assisting nonprofits to better plan for and operate their social enterprises, NESsT ensures their long-term success and higher efficiency for charitable giving.
WHERE do we do it? NESsT operates in five countries in Latin America (Argentina, Brazil, Chile, Ecuador and Peru) and in Eastern Europe.
NESsT has a solid track record with significant results. In Latin America, NESsT has provided support to over 150 social enterprises and currently has 75 in its portfolio, among them:
- Bem TV (Brazil): Bem TV´s mission is to teach adolescents from low-income areas around the city of Niterói how to use various communications media such as video and photography to mobilize and involve their communities in achieving local development goals. NESsT is supporting Bem TV’s social enterprise, a photography and video production company aimed at helping civil society organizations better communicate their programs and results. Bem TV writes the educational content and employs their own trained youth in the productions, creating high-impact communications material while offering new opportunities to its beneficiaries.
- Domos (Chile): Domos seeks to reduce domestic violence in Chile where virtually half of all women have been victims of domestic violence. Absences and turnover attributed to spousal abuse cost companies US$6 billion dollars annually. With support from NESsT, Domos offers fee-based courses to public and private clients on maintaining healthy family relationships. The workshops help improve worker productivity, decrease absenteeism and reduce incidences of domestic violence.
- Dignidad (Argentina): Dignidad provides training
to low-income women in a variety of trades that they can they use for employment or to start small businesses resulting in a stable
livelihood for themselves and their
families. NESsT is currently assisting Dignidad’s social enterprise in the sale of design services to textile designers by students and graduates of the sewing courses taught by Dignidad. The enterprise will provide employment for low-income women while generatingrevenues for Dignidad to offer more training to future students.
- Uniendo Manos (Peru): Red Uniendo Manos creates employment and improves the quality of life of artisans that come from low income communities With NESsT support, Uniendo Manos‘ social enterprise improves the quality and commercialization of Peruvian handcrafts made by the artisans in rural, isolated areas with limited access to markets. As a result, these artisans are now able to secure markets and sell their products for a fair price, resulting in a better quality of life for themselves and their families.
Click here to view more examples of social enterprises in the NESsT portfolio in Latin America.
All donors will be recognized on the campaign supporters website and will receive an interim and year-end report from NESsT demonstrating the use of funds and resulting impact of their donations.
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