Fewer than 10% of the worlds inclusive finance institutions meet DWM’s standards for underwriting.
Our high selectivity when investing in any sector is not a limitation—it’s one reason that DWM’s investments can have risk-appropriate returns with high levels of impact. We believe that rigorously assessing investment risk actually broadens our opportunities because we can undertake successful impact investments that others might not.
“When people say developing-market impact investing is ‘risky,’ what it usually means is that they don’t understand the risks. Understand the risks, and you understand how to make the investment.”
Christopher Mehan, Chief Risk Officer
“When people say developing-market impact investing is ‘risky,’ what it usually means is that they don’t understand the risks. Understand the risks, and you understand how to make the investment.”
–Christopher Mehan, Chief Risk Officer
Specialization combined with local presence
DWM’s senior managers have decades of emerging- and frontier-market experience in impact. We have team members in a dozen countries strategically located in Africa, Central America, South America, Europe, the Caucasus and South Asia, and our team has living/working experience in 40 countries.
Specialization combined with local presence
Every DWM senior manager has many years of emerging- and frontier-market experience in impact. We have team members in more than a dozen countries strategically located in Africa, Central America, South America, Europe, and South Asia, and our team has living/working experience in 40 countries.
On-the-ground due diligence
DWM conducts on-site due diligence on its investments, including the evaluation of credit methodology, risk controls, management, operations, governance and impact performance.
Checks & balances
All new investments are reviewed by the relevant portfolio head, our chief risk officer, our head of impact, the DWM Credit or Investment Committee, and often by external investment committees. Our internal legal team conducts KYC (know your customer), AML (anti money laundering) and CTF (counter terrorism financing) checks and oversees pre-investment documentation.
Ongoing monitoring
The DWM Risk Team reviews monthly or quarterly financials and portfolio reports and addresses identified issues with obligors or private equity investees. Investment and/or risk teams conduct periodic on-site reviews. And private equity investments usually include DWM board oversight or hands-on management.
Risk and return: private credit
DWM’s private credit investments provide investors with a diversified set of emerging markets fixed income assets with relatively low correlation, credit spreads typically 200 to 400 basis points above comparable local sovereign yields, and short-term durations of approximately two years.
The asset class as a whole has demonstrated resiliency within the context of emerging markets.
Risk and return: private equity
DWM’s private equity investments provide investors access to category-defining companies and industry-leading management teams that aim to drive strong financial returns. As an activist stakeholder, DWM often seeks substantial minority or majority control to influence the application of high corporate governance standards and to drive value creation.
In 2024, DWM marked its 18th successful exit from a private equity impact investment—successful in terms of growth and maturation for the portfolio company…impactful provision of services to the company’s clients and the communities in which it operates…and the opportunity for risk-appropriate realized returns for DWM’s investors. To date, DWM has returned more than $100 million in capital to its equity LPs, including more than 140% of paid-in capital to our Fund I investors.
Impact spotlight
Impact spotlight
El Salvador
PADECOMSM Credito is an offshoot of a fund created to help the poor in El Salvador increase their health and agricultural yields. It makes small but much-needed loans to people in rural areas and other marginalized communities and is purposefully structured to eliminate traditional impediments faced by female entrepreneurs—and not only financial impediments. PADECOMSM Credito has established a program in which the children of female entrepreneurs can be left for the day and are provided with education and food so their mothers can work to grow their businesses.
DWM made a debt investment in PADECOMSM Credito in 2018.
PADECOMSM Credito is an offshoot of a fund created to help the poor in El Salvador increase their health and agricultural yields. It makes small but much-needed loans to people in rural areas and other marginalized communities and is purposefully structured to eliminate traditional
impediments faced by female entrepreneurs—and not only financial impediments. PADECOMSM Credito has established a program in which the children of female entrepreneurs can be left for the day and are provided with education and food so their mothers can work to grow their businesses.
DWM made a debt investment in PADECOMSM Credito in 2018.
