Giovanni Amodeo hosts a fireside chat with Patrick Fisher, Founder of Creation Investments Capital, to explore trends in sustainable investment. Fisher shares insights from his extensive experience in financial services within emerging markets.

Background and Journey:

• Early Career: Fisher’s journey began in the Midwest, USA, with education at Notre Dame, followed by a career at JP Morgan, including a significant stint in China during the early 2000s.
• Founding Creation Investments: In 2007, Fisher founded Creation Investments, focusing on financial services in underpenetrated markets like India, Mexico, and Brazil.

Identifying the Niche:

• Demand for Financial Services: Fisher highlights the persistent demand for banking services in emerging markets, driven by the needs of small businesses and families.
• Evolution of Terms: The terminology has evolved from “social impact” to “ESG” and now back to “sustainability.”

Positioning to Investors:

• Financial Services Focus: Creation Investments emphasizes deep domain expertise in financial services, particularly for the poor.
• Country Selection: Fisher stresses the importance of investing in large, dynamic economies like India and Mexico, while avoiding high-risk regions like Africa.

Macro Trends and Demographics:

• China vs. India: Fisher contrasts the demographic challenges in China with the growth potential in India, driven by a young, emerging middle class.
• Climate Transition: Creation Investments focuses on helping the poor become financially resilient in the face of climate change.

Public and Private Capital:

• Collaboration: Fisher discusses the synergy between public and private capital in supporting financial inclusion.
• Regulatory Support: He highlights regulatory frameworks that facilitate financial services for the poor.

Exit Strategies:

• Successful Exits: Fisher shares examples of successful exits through strategic buyers, public issuances, and financial buyers.
• Market Dynamics: He emphasizes the importance of considering exit strategies before entering deals.

Sustainable Growth:

• Controlled Growth: Fisher advocates for cautious, steady growth aligned with operational capabilities.
• Private Credit: He highlights the growing role of private credit in impact investing, offering high returns without compromising on impact.

Impact Measurement:

• Key Metrics: Fisher outlines the importance of measurable, intentional, and attributable impact, with a focus on financial services for the poor.

Future Directions:

• New Markets: Fisher expresses interest in expanding investments in Indonesia and Brazil.
• Independent vs. Large Organizations: He discusses the benefits of being an independent firm, such as fast decision-making and deep domain expertise.

Conclusion:The chat concludes with Fisher’s vision for the future, emphasizing the need for innovative investment strategies that align with sustainable and impactful growth.

Key timestamps:

00:09 Introduction to Sustainable Investments
01:39 Transition from Banking to Entrepreneurship
04:07 Positioning Investment Thesis
06:59 Demographic Trends and Economic Growth
09:08 Challenges of Sustainable Development
10:58 Collaboration Between Private and Public Capital
13:57 Barriers to Impact Investing
15:47 Exit Strategies in Private Equity
18:12 Maintaining Humility in Investment Decisions
19:58 Private Equity vs. Private Credit
21:49 Defining Impact in Investment
24:59 Expanding Investment Horizons
25:38 The Advantages of Independence in Investment
27:07 Innovations in Impact Investing