The Frontier Brokers are a key component of the Scaling Frontier Innovation initiative, which aims to strengthen the ecosystem supporting social entrepreneurs to scale their development impact.
Our Frontier Brokers will address weaknesses in the current entrepreneurial ecosystem by directing more appropriate types of capital to social enterprises so that they can scale their development impact. They will achieve this by specifically using a gender lens to uncover opportunities and unseen constraints that prevent all people from having equal access to the financial and other support that they need to grow their businesses. Businesses that are solving problems in communities around Asia Pacific – that are employing local people – and that are contributing to a better, fairer and more prosperous future for all.
Introducing our Frontier Brokers...
BIDUK (Investing in Business for Progress)
Implementing partner: Athena Global Alliance
“Berinvestasti Dalam Usaha untuk Kemajuan” (Investing in Business for Progress) or BIDUK for short is a lending platform aimed at meeting the needs of Indonesia-based small and growing businesses, with an emphasis on those owned by women. BIDUK aims to show that flexible debt products are well suited to meet the needs of women owned and led enterprises in Indonesia (and throughout Southeast Asia). Ultimately, this experiment will help refine which debt products and services meet the needs of these underserved businesses.
Asia Pacific Notes Series
Implementing partner: Brightlight Consortium
The Asia Pacific Notes are the world’s first fixed income securities to aggregate bespoke, fit for purpose loans to social enterprises from across the Asia Pacific region. The Notes Series, issued regularly depending on demand, enables social enterprises to access the capital markets in a timely, cost efficient and flexible manner while providing impact investors with a scalable, standardised, high-impact and diversified investment product that embeds gender lens investing principles into its design. Working with regional and local intermediaries to understand the bespoke financing needs of the social enterprises as well as with capital market distributors to market the Asia Pacific Notes to mission-aligned investors in key markets in Asia Pacific and Europe. The Asia Pacific Notes are designed to meet institutional investor requirements of scale, standardisation, diversification and liquidity.
Impact Connect is an innovative brokering mechanism that leverages risk capital from impact-first investors operating locally and internationally, to stimulate financing for social enterprises and improve lender confidence in missing middle social enterprises.
Through the strategic use of social impact capital and gender lens investing, the brokering leverages the resources and expertise of local banks to stimulate financing, creating income and employment for low-income households. Impact Connect will focus on Indonesia and Cambodia. The Impact Connect model will use an innovative loan structuring method, basing principal repayments on business cash flow (rather than a fixed repayment schedule) to meet early-stage enterprise needs, ultimately reducing risk to both the banks and the investee enterprises.
Equity @ Scale
Implementing partner: Impact Investment Exchange
IIX is developing the ecosystem for gender-lens investing by mobilizing three types of capital for social enterprises—human capital in the form of investment readiness training; social capital in access to mentoring and corporate networks; and financial capital in the form of private sector equity and debt investments. With a decade of experience building the impact investing market in Asia-Pacific and driving women’s empowerment, IIX will leverage its ecosystem and gender-focused approach to support the growth of social enterprises across the region.