The Grunin Center’s virtual library offers a unique collection of teaching tools, including case studies and interactive simulations with teaching notes, all drawn from real-world events in social entrepreneurship and impact investing. Our collection features a series of five case studies following the journey of an impact investment fund sponsored by Habitat for Humanity International. These include overviews, authentic deal documentation, and video interviews with key representatives involved in the contracts. Explore the overviews of each case study from the series below.
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Case Studies Overviews
Launching the MicroBuild Fund
This Launching the MicroBuild Fund case study focuses on the creation of a blended finance facility that was sponsored by Habitat for Humanity International to attract funding into housing microfinance on a global scale. The fund – called the MicroBuild Fund – is a demonstration fund. The primary protagonist in this case is the nonprofit organization, Habitat for Humanity International. The case study focuses on Habitat’s decision to sponsor the launch of its first impact investment fund – the MicroBuild Fund, and the structuring and documentation issues Habitat confronted as it blended capital from a variety of actors. Secondary points of view include other significant, early investors in the MicroBuild Fund – including in particular the Omidyar Network (ON) (equity from a private foundation) and the Overseas Private Investment Corporation (OPIC)* (debt from the US Government’s development finance institution (DFI)).
The case study starts on the day that OPIC is expected to sign its loan agreement with the MicroBuild Fund. The story is told from the point of view of a senior manager at Habitat for Humanity (Patrick Kelley), who was instrumental in conceiving this fund and getting the various parties to join in the fund’s launch. As Patrick waits for the signing of the OPIC Loan Agreement to occur, he reflects on the long road that it took to get to this point. In particular, he reviews the challenges that arose as he and his colleagues worked to convince the Board of Habitat for Humanity to agree to sponsor this fund and then attract a variety of sources of funding into this impact investment fund (US government, high net worth individuals, fund manager, foundation). The case study ends with the press release announcing the launch and funding by OPIC.
This case study is the first in a forthcoming series of case studies that map the life of a single impact investment fund over a decade – from its launch to winding up. This longitudinal approach to creating a series of case studies about the same impact investment fund will offer the field an opportunity to see how an impact investment fund must adapt and change to respond to opportunities and challenges over its life. This case study also is presented from a multidisciplinary point of view, braiding together legal, business and policy issues that surrounded the launch of the MicroBuild Fund.
*Effective January 2, 2020, OPIC is now operating as the U.S. International Development Finance Corporation (“DFC”).
Legal Services in the Launch of the MicroBuild Fund
The Legal Services in the Launch of the MicroBuild Fund case study examines the nature, type, and fee arrangements of the legal services used to structure and document the launch of an impact investment fund – the MicroBuild Fund – sponsored by Habitat for Humanity International (Habitat) in 2012. Told from the point of view of deal counsel to Habitat (Carl Valenstein), the case study begins on the day Carl is honored with his law firm’s annual public service award – the first time in the firm’s history that the award is conferred in recognition of a transactional pro bono matter. Carl reflects on the various challenges that arose in the representation, which spanned over three years, as well as the myriad ways in which the deal was a valuable opportunity for his immediate team and his law firm.
In addition to exploring applicable eligibility standards for the delivery of legal services on a pro bono basis, the case study highlights the post-eligibility assessment challenges that arise in the course of delivering legal services on a pro bono basis for a complex transaction such as MicroBuild Fund. These challenges include having the necessary practice area and counterparty expertise, meeting investor requirements, engaging local counsel where necessary, ensuring appropriate staffing, and addressing ethical issues that arise in the representation. The case study also provides an opening to discuss the benefits that transactional lawyers can obtain from developing an active pro bono practice.
Scaling the MicroBuild Fund
Coming Soon
Attracting Philanthropic Capital as Program-Related Investments for the MicroBuild Fund
Coming Soon
Managing Foreign Exchange Risks When Scaling the MicroBuild Fund
Coming Soon