“You must be the change you wish to see in the world.”
- Mahatma Gandhi
Mc. Arthur Foundation
Equitable Circular Economies
The circular economy holds huge promises; both in terms of short term gain and as a sustainable long-term business mode. Businesses that adopt a circular model work out future costs, and adapt their business models towards the long term and not towards quarterly dividends. Perhaps, this could be achieved by straying away from a sales business and moving towards long term service contract. As an economy, the circular model makes a lot more sense to invest in.
LAPO is a microfinance organization based in Nigeria. Its mission is to serve the needs of the poor through small loans. However, it charges interest rates of up to 200% per customer. It has grown from a small partnership into a company with 107.6 million US. Dollars.
This company is known as the pioneer of microfinance. It makes loans based on trust with relatively low interest rates However, its structure does not allow it to play a direct hand in the success of its borrowers. It currently controls about 180 million US dollars.
Bank of Nova Scotia
This bank was one of the first commercial banks to venture into the world of microfinancing. Its social enterprises program in Guyana is known as one of the leading microfinance programs in the world. However, its status as a large bank makes it subject to unfavorable policies. Scotiabank holds a market capitalization of 75 billion dollars.
DAI is known as one of the successes in the area of US Foreign Aid. It has created customized programs that have revitalized the economies of countries all over the world. DAI controls 400 million dollars of funding.
Investing in Regeneration
A Unique Model
What Makes Us Different
Lilavati Equity Management
We combine the models of Bank of Nova Scotia and DAI, while avoiding predatory loaning, and ambiguity by generating lasting value for our clients while improving the socioeconomic conditions of workers, women, and the poor. By providing our expertise, market access, and capital, we can create: scholarships, sustainable suppliers, and industry leading companies.
As an equity partner, we are positioned to identify, and invest in opportunities to transform the companies of today.
We will create the companies of the future.
In a competitive environment, companies need to create their own business models in order to be profitable. Far too often, otherwise profitable companies suffer from a lack of expertise in forming a profitable model.
We will lend our expertise to companies in need of such a sustainable model.
“Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime.” – Chinese Proverb
"One of the greatest resources people cannot mobilize themselves is that they try to accomplish great things. Most worthwhile achievements are the result of many little things done in a single direction." -Nido Qubein
While micro financing has grown over the years, it remains difficult for women and small businesses to get loans from a commercial bank.
We offer zero interest rate loans in exchange for veto rights, and partnership in the company. With this control, we can take initiatives to: maximize profit, pay workers higher wages, and take a small company in the direction it needs to go. Company owners are given bonds that are redeemable for annual payments, or a proportionate share of our company's projects.
"If we all did the things we are capable of doing, we would literally astound ourselves." – Thomas Edison
Many supply chains are built on a system that capitalizes on low cost labor opportunities in order to create stable, high volume production. But, companies such as these cannot respond to a future where the locations and times suitable for manufacturing have changed.
With our local partners, we create a totally different kind of supply chain. Small and nimble supply chains can use the same information and resources, but save time, money and serve customers better. A future supplier will make components, and then assemble them as per the customer orders.
As a company, we offer personalized solutions to a wide range of problems.
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The LLP structure combines attractive aspects from a partnership while providing legal flexibility. Unlike corporations, LLPs are not taxed as single entities and therefore, are subject to much less taxes. An LLP also shields employees in the event that the company goes bankrupt. The company will lose money, but employees would not lose any of their personal assets. An LLP also offers employee flexibility. Since employment is specified as a partnership, we can add or remove people according to their contract. This comes into handy when one of our partners wants to add on to our business. This is also useful because employment or termination thereof has to be approved by our partners.
Tax advantages of an LLP
An LLP is not subject to Capital Gains, inheritance, or income tax.
Instead, the partners pay a fraction of the taxes of the company.
This allows us to:
Generate higher returns for our clients
Split our business into more efficient units
Transfer assets within our group
We will create value for our clients and generate above market returns.
We will create sustainable enterprises where business cannot.
We will always be committed to the socioeconomic well being of our businesses.
We will be accountable for all of our promises.
We will create lasting impact, not small deals.
We will make our actions subject to monitoring by our investors, and stakeholders.