A THIRD WAY TO THINK ABOUT AID
Patient capital investing bridges the gap between the efficiency and scale of market-based approaches and the social impact of pure philanthropy. Patient capital has a high tolerance for risk, has long time horizons, is flexible to meet the needs of entrepreneurs, and is unwilling to sacrifice the needs of end customers for the sake of shareholders. At the same time, patient capital ultimately demands accountability in the form of a return of capital: proof that the underlying enterprise can grow sustainably in the long run.
We are seeing exciting new business models capable of bringing affordable, life-changing products and services to the poor. These businesses are transforming the lives of their customers, and are creating jobs that lead directly to economic growth.