Impact Investment

Financial solutions that connect capital, businesses, and organizations for positive impact.

Resources have a greater impact when they find common ground. appropriate financial solutions and prepared organizations to access, manage and apply capital.

What is impact investing?

Impact investing directs capital to businesses, organizations, and initiatives with the explicit intention of generating measurable social and/or environmental impact, along with an expected financial return. Impact is part of the investment decision from the outset.

Who makes the impact happen with us?

Blended finance and organizational strengthening to expand access to capital.

Blended finance combines capital sources with different risk, return, and impact profiles, such as philanthropic, public, catalytic, and commercial resources, to enable initiatives and mobilize more capital for the socio-bioeconomy.

Financial Solutions for Impact

We structure tailored financial solutions for companies, institutes, and foundations that want to direct capital towards agendas, territories, and projects with social or environmental impact.

How we structure an impact investing solution.

1 Diagnosis

We identified the demands, bottlenecks, and opportunities of the problem/proposal.

2 Solution design

We defined the strategy and the most appropriate financial instruments.

3 Structuring

We designed the operational, legal, and governance model.

4 Raising and mobilizing capital

We mobilized resources and coordinated with funders and partners.

5 Operation

We implement and manage the financial solution throughout its execution.

6 monitoring

We monitor results, risks, lessons learned, and the impact generated.

What can the Impact Investing area structure?

Depending on the challenge, the solution may combine different instruments and sources of capital, including:

Reproduction: Julio Glatt - VerdeNovo Seeds

Flora Fund | Amazon Restoration

In partnership with WRI Brazil, Sitawi adapted a blended finance mechanism to fund restoration in the Amazon region of Pará, prioritizing community-based organizations. The Flora Fund combines donations, loans, and hybrid resources and functions as a revolving fund: returned resources can finance new initiatives.

Coca-Cola Foundation | Blended finance for water security

To broaden the impact of its water security initiatives, Coca-Cola sought a financial operation capable of combining its resources with capital from other investors. Sitawi conducted due diligence on the selected organization and structured a matchfunding round through the Collective Lending Platform for Positive Impact. After fundraising, close monitoring of the organization is carried out, with meetings and mentoring sessions.

Lighthouse - Financial preparation for impact organizations

Farol is Sitawi's financial preparedness program for community-based organizations, cooperatives, and impact businesses. With a unique and practical methodology, it strengthens managerial and financial skills, prepares organizations to access and manage capital, and supports funders in building a pipeline of impact businesses better suited for investment.

Institutional strengthening

Developing managerial, financial, and strategic skills to improve management and the ability to access resources.

Customized and territorial methodology

Training, mentoring, and tools tailored to the reality, territory, and maturity of each organization.

Local leadership and solutions

Valuing solutions developed within the territories and strengthening the autonomy of organizations.

Preparing for access to the capital

Support for structuring proposals, improving financial management, connecting with funders, and accessing investment in a sustainable way.

EcoCycle | From financial preparation to your first investment

EcoCiclo, a women-led impact business, participated in Farol in 2024. Through individualized diagnosis, financial planning, cost and revenue review, and preparation for discussions with investors, the organization strengthened its management and investment raising strategy.

In less than a year, EcoCiclo secured its first investment.

Impact investing solutions and organizational strengthening can operate independently or in an integrated manner. We structure financial solutions to expand access to capital and strengthen organizations to access, manage, and apply these resources sustainably.

Why should a company, institute, or foundation structure an impact investment solution?

A company, institute, or foundation can structure an impact investment solution when it needs to transform available resources into a mechanism capable of financing impact organizations or businesses in a structured, measurable way that is appropriate to the desired risk and return profile.

1

When you want to direct resources towards socio-environmental impact, but need to transform that intention into a financially viable and operational solution.

2

When you need to combine different sources and instruments of capital, balancing risk, return, reach and impact through strategies such as blended finance.

3

When you want to invest in organizations with the potential for impact, but which need financial preparation to access, manage, and apply the resources.

4

When you want to strengthen suppliers and organizations in the socio-environmental value chain, expanding their capacity to access and manage capital.

Impact that reaches the territories

We connect capital to organizations and initiatives in different regions of Brazil, supporting impact businesses and socio-environmental solutions in areas such as socio-bioeconomy, family farming, and forest restoration. We structure financial instruments adapted to the reality of each territory.

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Do you want to transform resources into impact that reaches the end user?

If your company, institute, or foundation wants to structure a financial solution for impact investing or strengthen organizations to access capital, talk to Sitawi.

What are the ways to finance socio-environmental impact?

What is blended finance and how can it finance socio-environmental impact?

Blended finance combines different types of capital, such as philanthropic capital, catalytic capital and investment capital to enable socio-environmental initiatives. This combination can reduce risks and expand the access to capital and to make projects and organizations more prepared to receive investment.

How can a company fund impact businesses and organizations?

A company can finance impact businesses and organizations through different mechanisms, such as loans, catalytic resources, matchfunding, and blended finance structures. The solution depends on the impact objective, the target audience, and the desired risk-return profile.

How can we expand access to capital for impact businesses and organizations?

Expanding access to capital requires appropriate financial instruments and organizations prepared to receive and manage resources. Therefore, an impact investing strategy can combine financial instruments for impact, philanthropy, and access to credit. and strengthening the financial and managerial capabilities of organizations.

How can we strengthen suppliers and organizations in a socio-environmental value chain?

Companies can strengthen suppliers and organizations in their value chains through financial preparedness, development of managerial skills, and access to financing mechanisms suited to each organization's specific needs. These two approaches can be combined to enhance execution capacity and access to capital.

What is the difference between impact investing and philanthropy?

Philanthropy directs resources to socio-environmental causes without expecting financial return. Impact investing, on the other hand, seeks to intentionally generate positive socio-environmental impact while anticipating some level of financial return. The two approaches can be complementary, including in blended finance structures, which combine different types of capital to enable impact solutions.

How to structure an impact investment solution?

The structuring process begins with diagnosing the challenge and defining the impact thesis. Following this, the financial instruments, capital sources, governance, capital mobilization strategy, operation, and impact monitoring are defined.

What is catalytic capital and how is it used in blended finance?

Catalytic capital It is used to assume risks or offer conditions that traditional commercial capital would not undertake, helping to make operations viable. In structures of blended finance, This can reduce perceived risks and mobilize additional capital for impact initiatives..

What is a revolving fund?

A revolving fund is an impact investing mechanism in which resources are used to finance impact organizations and businesses and, after repayment, return to the fund itself to be used again.

In practice, the fund provides capital for socio-environmental initiatives through financing with conditions defined according to the profile of the businesses, such as reduced interest rates, zero interest rates, or other credit formats. When the resources are returned, they can finance new organizations.

At Sitawi Finanças do Bem, revolving funds are structured and managed to broaden access to capital and allow the same resource to generate positive socio-environmental impact multiple times over time.