MANILA, Philippines - Glovax Biotech Corp., a Philippine company that provides low-cost vaccines, has partnered with investment firm KKR Asia Ltd. to boost long-term sustainability.
KKR, together with Investment Exchange and non-profit firm Shujog, successfully completed a second social enterprise technical assistance project with Glovax.
The partnership aims to assist Glovax in implementing financial, operational and social initiatives to better position the company for third-party funding and long-term sustainability.
By aiding in the transformation of social enterprises into sustainable businesses, global investment firms such as KKR contribute to the longevity of these enterprises, thus widening their capacity to effect social impact.
KKR helped Glovax to develop a business plan and financial model and extended a $1 million credit line to increase the number of vaccines for distribution from 400,000 to 500,000. The money would also be used to hire 10 additional staff to increase market penetration,” Okun said.
In an interview with The Star, Asia Pacific KKR director for Public Affairs Steven Okun said they chose Glovax because the company brings unique social value to communities in and around Metro Manila due to its core business.
Okun said KKR is looking to partner with other firms that have a track record of success.
“KKR provides investment and value-add beyond capital to these partnerships. Our aim is to work with the management of companies and also to assist by leveraging all of the resources of our global platform to create value for the long-term,” he said.
KKR has investments in market-leading companies across South East Asia, including Avago, Goodpack, MMI and Unisteel in Singapore; Masan Consumer in Vietnam; Weststar Aviation Services in Malaysia; and Tiga Pilar Sejahtera Food in Indonesia.
“KKR looks forward to investing in market-leading companies in the Philippines as well,” Okun said.
James Soukamneuth, associate director of Shujog said impact investments provide tremendous catalytic value towards unlocking more capital in order for businesses to scale up.
Impact investors are generally willing to come in at earlier stage to bridge the funding gap and take on more risks, allowing the social enterprise to show growth and demonstrate a track record in scaling up.
“This opportunity provides them a runway to show their sustainability, attract mainstream capital, and scale up both in terms of operations and impact,” he said.