Beyond Capital Fund

What it reported doing in 2023

What do we do? We are a social impact fund that invests in for-profit social enterprises throughout india and east africa. Though we seek market rate financial returns, beyond capital is structured as a nonprofit, and we can remain patient and not pressured by arbitrary fund horizons, which permits us to emphasize fidelity to our social mission alongside our financial mandate. For whom do we do it? We invest in businesses focused on greater access to health care, water, sanitation and energy, as well as food security and financial inclusion, which can increase the quality of life and standard of living for consumers at the bottom of the pyramid. When do we do it? Often, we are the first professional investment capital and can be deployed in conjunction with foundation grants or repayable development grant capital. We exist in a capital gap professional investors are in short supply because social enterprises appear higher risk in developing markets. Our expertise and familiarity with these markets, mitigates the challenges of investing in what are perceived high-risk investments for others. How do we do it? We tackle the lack of capital for social enterprises by providing seed stage investment, management advisory, pro bono resources and mentoring. We make "seed" investments in early-stage companies. At the time we invest, our companies have defined their business challenges and operations and meeting the market working to validate their business model. It's inherent in our name. In addition to capital, we provide "beyond capital" resources to social enterprises both in and out of our capital portfolio. It's a crucial part of our early stage investing strategy. Our "beyond capital" offerings include provision of pro- or low- bono legal and financial advisory assistance, as well as connection to our network of advisors and in some instances, involvement in our mentorship program. We bring like-minded investors, experts and other partner resources to participate in the conversation and to broaden the scope and reach of impact investing as a discipline.

Financial Efficiency

• Mission deployment rate: 85.8%; rating input score 86
• Program expense ratio: 69%; rating input score 69
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 81st percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 80%; rating input score 80; 21st percentile among comparable filings
• Governance controls: 5 of 8 controls in place; rating input score 62
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: -25.1%; rating input score 12; 12th percentile among comparable filings
• Total-asset coverage ratio: 2.48; rating input score 64; 64th percentile among comparable filings
• Liabilities to assets ratio: 0; rating input score 54; 54th percentile among comparable filings
• Officer compensation ratio: 25.6%; rating input score 14; 14th percentile among comparable filings

Growth

• Program expense growth: -11.6% per year; rating input score 0; 10th percentile among comparable filings
• Revenue growth: 8.6% per year; rating input score 100; 68th percentile among comparable filings
• Asset growth: 19.2% per year; rating input score 100; 83rd percentile among comparable filings