The Macquarie Group Foundation has committed US$700,00 to Good Return’s Impact Investment Fund II, a significant boost for women-led enterprises in the Asia-Pacific. This investment elevates the fund's total committed capital to US$1.5 million, channeling high-impact finance to entrepreneurs tackling gender and climate inequality. The initiative aims to foster sustainable economic growth by empowering women and building resilient local economies across the region.
A Strategic Partnership for Systemic Change
Lisa George, Global Head at the Macquarie Group Foundation, expressed excitement about continuing to support Good Return's growth and its mission to increase access to finance. This work aligns directly with the foundation's funding focus, which has also seen Macquarie employees engage through volunteering and pro bono initiatives. The partnership underscores a shared commitment to dismantling systemic barriers and creating tangible employment opportunities for underserved communities.
Good Return is dedicated to ending poverty by providing responsible finance and comprehensive training to women and other excluded groups. Through digital tools and educational programs, the organization helps individuals build the confidence and skills needed for sound financial decision-making. This holistic approach empowers a new generation of entrepreneurs to manage their money, grow their businesses, and secure their futures.
The Mechanics of Impact Investment Fund II
The Impact Investment Fund II is structured as a US$7.1 million evergreen fund, designed to recycle capital continuously for maximum long-term impact. Its ambitious goal is to deliver an estimated US$35.5 million in financing every five years by partnering with local financial institutions. This innovative model is engineered to mobilize larger volumes of capital into markets that are traditionally underserved by mainstream finance.
The new fund builds upon the proven success of its predecessor, a $700,00 pilot fund that demonstrated remarkable results. Fund I successfully generated $3.6 million in financing for 602 micro, small, and medium enterprises (MSMEs) across the region. Critically, an overwhelming 90 percent of these businesses were led by women, validating the model's effectiveness in reaching its target demographic.
A Dual Focus on Gender and Climate Resilience
A key feature of Fund II is its dual approach, which targets both women-led MSMEs and climate-smart solutions. The fund actively seeks to support enterprises that promote environmental sustainability through innovations like bio-fertilisers and adaptive agri-finance products. This strategy ensures that financial empowerment is directly linked with building environmental resilience within vulnerable communities.
By integrating a climate focus, the fund directly addresses the interconnected challenges of gender inequality and climate change. These investments help stabilize incomes and reduce communities' vulnerability to climate shocks, which disproportionately affect women in the Asia-Pacific. This forward-thinking approach fosters a more sustainable and equitable form of economic development for the entire region.
Scaling Impact Across the Asia-Pacific
According to Good Return’s CEO, Shane Nichols, the strong investor interest in Fund II signals the viability of its evergreen structure for mobilizing capital. He noted that the Macquarie Group Foundation's participation is pivotal for scaling the organization's work and deepening its regional partnerships. This strategic investment acts as a powerful catalyst for expanding the fund's reach and impact.
The expansion enabled by this investment will translate into tangible benefits for communities across the Asia-Pacific. It will facilitate the creation of more employment opportunities for women and their families, thereby strengthening local economies from the ground up. Ultimately, the partnership aims to generate systemic, positive change in both gender equality and climate resilience throughout the region's finance industry.
The collaboration between the Macquarie Group Foundation and Good Return marks a pivotal moment for impact investing in the Asia-Pacific. By channeling significant capital into women-led and climate-resilient enterprises, this partnership addresses critical social and environmental challenges simultaneously. The success of this model could pave the way for a new standard in sustainable finance, creating lasting change for generations.