What does GBF mean in BUSINESS

The Grassroots Business Fund (GBF) is a cutting-edge impact investing organization that works to generate attractive returns on its investments while supporting businesses in underserved markets around the world. GBF focuses on investing in companies that are already profitable and committed to improving their local communities through job creation, poverty reduction and access to essential goods and services.

GBF carries out an extensive due diligence process to assess investees' social and environmental performance, including health and safety, transparency, environmental sustainability and economic contribution to their ecosystem. Once invested, GBF periodically monitors each company's progress against agreed upon goals.

GBF invests in small-medium sized enterprises (SMEs), which are classified as companies with up to 250 employees or revenues of up to €50 million Euros per year. These SMEs must be located in emerging markets and provide needed services such as sustainable energy solutions, financial inclusion products, housing improvements, healthcare services or educational opportunities.

The minimum investment size for any particular deal is US$500K - US$2M depending on the specific business being considered for funding.

Depending on the risk profile of each business venture funded by GBF, investors can expect market rate returns ranging from 7%-15%. In addition to financial returns, investors will also receive social impact performance metrics on how the company has contributed towards community development goals laid out at the time of investment.

The typical term length for investments is 5 - 8 years with exit options available at different intervals throughout this period. For example, a liquidity event might take place after 3 years if there has been significant growth showing potential for further profitability over time.

Yes! GBF has had several successful exits in recent years including an agro-processing plant in Argentina which provided a 20% return to investors after 5 years and a renewable energy project in Guatemala that achieved a 40% return after 4 years.