Generally, traditional investments do not prioritise social impact, whereas philanthropic efforts and their emphasis on positive footprint often neglect scale and financial sustainability. This is why, in its ventures, Adequita looks for impact investing initiatives to unify profitability and social well-being, where potential opportunities offer attractive returns and drive positive change for the greater population.
Global Connect Initiative
Valuing Changes in the Applied Discount Rate for Investing in Emerging Economies
As part of Adequita’s commitment to make an impact in those communities where our activity takes place, in 2016, Xavier Adserà participated in the Global Connect Initiative organised by the White House in collaboration with the U.S. Department of State. At the Summit in Washington D.C., Xavier presented his theory of the Discount Rate Sensitivity analysis for Social Impact Investments in Emerging Economies.
To summarise, we can quantify the relation between the decrease of the investor’s required return and the equivalent amount devoted to social initiatives – projects with inherently low cash flow variations (i.e. infrastructure development) in high growth environments (i.e. emerging markets) exhibit the highest value sensitivity to changes in the required rate of return.
Dakia Global Enterprise
Impacting the World Together
Born as a result of incubating Formula-E, the friendship between Robert Lavia and Xavier Adserà has led the founding partners to link current endevoaurs between Dakia Global Enterprise and Adequita Capital.
Dakia Global Enterprise is an impact investment firm, with an overall focus on developing purpose-driven entities. Dakia incubates and capitalises each company by designing a compelling business model that enhances value to create win-win outcomes for all stakeholders. The firm’s platform focuses on the following verticals: Experiential Hospitality, Renewable Energy, Real Estate Development, and Technology.
As an example of current collaboration, Adequita has come onboard Dakia Global’s joint venture with Universal Music Group (UMG), UMusic Hotels, to act as CEO of the holding company, UVentures, and develop the next revolution in hospitality & entertainment. Learn more about Dakia Global.