Case Studies Collection - IMD business school for management and leadership courses

Case Study

IG4 Capital: Private equity with a purpose

SEPTEMBER 2023, SÃO PAULO (BRAZIL). Gustavo Buffara was painstakingly putting the finishing touches on the IG4 Private Equity Fund III presentation. Co-founded by Gustavo in 2016, IG4 Capital had grown to become a leading force in private equity in Latin America with a unique value proposition that focused on private equity special situations. W…

Finance Emerging Market Entrepreneurship Sustainability

By Benoit F. Leleux and Arthur de Bonis

IG4 Capital: Private equity with a purpose

By Benoit F. Leleux and Arthur de Bonis
Case reference: IMD-7-2545 ©2024

Summary

SEPTEMBER 2023, SÃO PAULO (BRAZIL). Gustavo Buffara was painstakingly putting the finishing touches on the IG4 Private Equity Fund III presentation. Co-founded by Gustavo in 2016, IG4 Capital had grown to become a leading force in private equity in Latin America with a unique value proposition that focused on private equity special situations. With 52 professionals worldwide across seven offices (in São Paulo, London, Lima, Madrid, Bogotá, Washington, DC and Santiago), the firm was now heading to manage some $1.7 billion, with more than $1.1 billion invested in special situations over recent years. What made Gustavo particularly proud was the fact that the firm was able to operate not only under the highest sustainability standards, as an early signatory of the Principles for Responsible Investment (PRI), but also as a fully certified B Corp, a first in emerging market private equity. IG4’s portfolio companies now generated more than $2 billion of turnover with around 20,000 employees in different countries across Latin America, and many of them had achieved or were on their way to their own B Corp certifications. Could a Cerberus-inspired special situations strategy, often perceived as brutal, be adapted to a more culturally sensitive, developing-market equivalent, with clearer environmental, social and governance (ESG) integration? In other words, could “vulture capital” be turned into “culture capital”? The value proposition resonated with investors, and the track record of IG4 Funds I and II were now solid pillars upon which to build. But what else could the company do to ensure that its private equity investments in different segments, with a deep ESG toolbox, would help establish sustainable capitalism in the Latin American region? What else should it consider doing to reaffirm its ESG credentials even further?

Reference IMD-7-2545

Copyright owner IMD Copyright

Organization IG4 Capital Partners

Industry Finance and Insurance, Private Equity

Available Languages English

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Related topics

Finance

Emerging Market

Entrepreneurship

Sustainability

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Case Study

Rede Mulher Empreendedora: Navigating mission integrity and financial sustainability

The case focuses on Rede Mulher Empreendedora (RME), Brazil’s largest support platform for female entrepreneurship, and its founder, Ana Fontes. Founded in 2010, RME had grown into a significant network by 2023, impacting the livelihoods of over 12 million women in Brazil, a country with substantial gender disparities. The platform offers initia…

Entrepreneurship Sustainability Diversity and Equity and Inclusion

By Vanina Farber, María Helena Jaén, Jose Mello, Lilian de Miranda, Patricia Araripe, Peter Munk Laursen and Rabia Chishti

Case Study

Not so black and white: Grupo Inca’s black alpaca dilemma (A)

Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regarding the conservation and commercialization of black alpaca fiber. Historically, black alpacas were as common as their lighter-colored counterparts, but market preferences drove them to near extinction…

Social Innovation Business Ethics Sustainability

By Vanina Farber, Carolina Duran Silva, Baris Silahcioglu, Hugo ten Zijthoff and Shih-Han Huang

Case Study

Not so black and white: Grupo Inca’s black alpaca dilemma (B)

Picking up where Case A ends, Case B reveals that Grupo Inca decided to innovate internally and develop a new fabric from the rare black alpaca fiber. After nearly three years of effort, the Inoue brothers’ dream of creating a luxury collection from undyed black alpaca fiber became a reality. The collaboration between the Inoue brothers, Incalpa…

Social Innovation Business Ethics Sustainability

By Vanina Farber, Carolina Duran Silva, Baris Silahcioglu, Hugo ten Zijthoff and Shih-Han Huang

Case Study

Pasona: Well-being through regional revitalization

Pasona Group, a Japan-based human resources company, is committed to driving social change through business and supporting individuals to find “ikigai” (fulfillment) through work. The company has promoted flexible work and equitable workplaces and created employment opportunities for minorities. Pasona now wanted to tackle the overconcentration …

Social Innovation Diversity and Equity and Inclusion Sustainability

By Alyson Meister and Naoko Jinjo

Case Study

Decathlon’s circular revolution: Scaling sustainable business models

The case focuses on Decathlon’s journey from 2023 onwards as it seeks to scale its circular business models and transform from a successful pilot phase to large-scale industrialization. Anna Turrell, Decathlon’s chief sustainability officer, is tasked with achieving ambitious growth targets – to increase circular sales by 6 to 10 times. The case…

Sustainability Innovation Value Creation

By Julia Katharina Binder and Manuel Braun

Case Study

La Marzocco: Espresso perfection

In July 2024 Guido Preti, La Marzocco’s sustainability manager, was preparing his three-year plan to combine La Marzocco’s ESG program with that of its new owners, the De’Longhi Group. Since its inception in 1927, the company had relentlessly sought to produce the perfect espresso machine through exceptional craftmanship, user centric designs an…

Sustainability Entrepreneurship Growth

By Benoit F. Leleux and Jan Van der Kaaij

Case Study

Ragn-Sells: From company in crisis to circular sustainability champion

This case highlights Ragn-Sells’ remarkable journey from facing financial difficulties to establishing itself as a global authority on the circular economy and sustainability. In 2015, Pär Larshans joined the Swedish waste management company during a period of financial uncertainty, prompting a re-evaluation of its business strategy. Through a c…

Sustainability Family Business

By Florian Hoos and Valerie Keller-Birrer

Case Study

Inspiring sustainability in sports: Carbon emission management at the International Olympic Committee

The case highlights the significant role played by the International Olympic Committee (IOC) in reducing its environmental footprint and promoting sustainability in sports. As the leader of the Olympic movement, the IOC bore the responsibility of setting a positive example to inspire the broader sports community. With ambitious climate targets a…

Sustainability Accounting Strategy

By Florian Hoos, Giovanni-Battista Derchi and Valerie Keller-Birrer

Case Study

Should Unilever pivot from being purpose-led?

The case study delves into strategic transformation and leadership transitions at Unilever since 2009. Unilever has been an industry leader of business sustainability. Paul Polman was a pioneer who introduced the idea that, by addressing social and environmental problems, a company can unlock new growth opportunities. Polman launched a 10-year S…

Strategy Marketing Purpose Sustainability Diversity and Equity and Inclusion

By Goutam Challagalla and Samaja Penumaka

Should Unilever pivot from being purpose-led?

By Goutam Challagalla and Samaja Penumaka
Case reference: IMD-7-2578 ©2024

Summary

The case study delves into strategic transformation and leadership transitions at Unilever since 2009. Unilever has been an industry leader of business sustainability. Paul Polman was a pioneer who introduced the idea that, by addressing social and environmental problems, a company can unlock new growth opportunities. Polman launched a 10-year Sustainable Living Plan with three objectives: to enhance health and well-being, livelihoods and environmental sustainability. Alan Jope followed in Polman’s path and launched a novel plan for the new decade called The Unilever Compass, focused on sustainability. Unilever took a strategic turn during Jope’s tenure and asked the brands to use their products to solve social issues. He called this “purpose-led branding,” which confused investors. They believed social branding would take the company’s focus away from growth. Tensions were high at Unilever and resulted in a change in leadership. The company wants to focus on growth, which raises questions about the future of corporate sustainability at Unilever.

Reference IMD-7-2578

Copyright owner IMD Copyright

Organization Unilever

Industry Consumer Goods

Available Languages English

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Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Marketing

Purpose

Sustainability

Diversity and Equity and Inclusion

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Case Study

From grease to green: Impact investing due diligence on ZhanaSolutions

Fatbergs and grease waste from industrial kitchens are hardly the most enticing topics for a business school case study. Yet ZhanaSolutions, the start-up examined in this impact investment due diligence case, is all about grease waste. At least, on the surface. When one dredges deeper, the case reveals a compelling story about how to embed impac…

Social Innovation Entrepreneurship Finance Sustainability

By Vanina Farber and Shih-Han Huang

Case Study

Nespresso: Strategy reset for growth: The youth market (Abridged)

Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company’s current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certain shortfall, the company needs to attract young coffee drinkers among Millennials and Generation Z, …

Marketing Strategy Sustainability

By Kamran Kashani and Goutam Challagalla

Case Study

Ikea Belgium Welcome Home Project: From ad hoc to deep social impact

The case describes IKEA’s new approach to making an impact through IKEA Belgium’s “Welcome Home Project,” dedicated to assisting single-parent families. The idea for the program came about during a cross-functional brainstorming session and initially involved donating funds and furniture to centers and shelters supporting such families. The proj…

Social Innovation Sustainability

By Sophie Bacq and Valerie Keller-Birrer

Case Study

Galeneo Health: Scaling the hospital@home platform

MADRID (SPAIN), MARCH 2023. Jaime Garcia-Prieto, founder and CEO of Galeneo, was polishing the deck for the fundraising for his healthcare start-up. The seed round of €1 million would take him to the institutional A round scheduled for Q3-2024, a comfortable 18-month+ runway. His proposal to decentralize healthcare through a tech-enabled hospita…

Digital Transformation Disruption Entrepreneurship Operations Sustainability

By Benoit F. Leleux

Galeneo Health: Scaling the hospital@home platform

By Benoit F. Leleux
Case reference: IMD-7-2496 ©2023

Summary

MADRID (SPAIN), MARCH 2023. Jaime Garcia-Prieto, founder and CEO of Galeneo, was polishing the deck for the fundraising for his healthcare start-up. The seed round of €1 million would take him to the institutional A round scheduled for Q3-2024, a comfortable 18-month+ runway. His proposal to decentralize healthcare through a tech-enabled hospital@home platform offered the solution people were looking for not only in Spain but also in most advanced economies. According to a recent Economist article, the NHS, like many healthcare systems, had become a sickness service, not a health service. To live up to the promise of its name would require a shift in focus, away from hospitals to the community, from centralized treatment to community-based prevention and bedside medicine. In other words, health systems needed to be investing in smoke alarms, not fire extinguishers. In 2020, as the Covid pandemic began, Jaime envisioned the future of in-home care for patients with chronic treatment needs. In 2021, he embarked on developing a platform to coordinate bedside medical care anywhere, anytime, in minutes. Galeneo was born. By 2023, it had integrated 200+ healthcare providers (HCPs) and 11+ institutional partners in the Madrid region, enabling the provision of general high-value services outside hospital. Revenues of €1.6 million in 2023 were expected, with a growth rate of about 8% every month and net profit breakeven reached in February. Things looked positive, but there were issues around scaling fast – although Jaime had found solutions. To counter the limited availability of qualified healthcare workers, he developed the Galeneo Academy to train future in-home bedside specialists. Tech-enabled standardization reduced operational complexity through an easy-to-use app and included real-time monitoring and quality control. Finally, the whole concept of community-based bedside medicine was still nascent, which meant market participants needed to adopt original approaches. But it was a large market with great potential.

Reference IMD-7-2496

Copyright owner IMD Copyright

Organization Galeneo

Industry Healthcare, Health and Medical Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications