ABOUT THE GEOTOURISM INVESTMENT FUND

The Geotourism Investment Fund was launched in 2008 as an innovative way to use private equity investments to stimulate international development. The fund provides seed capital to finance sustainable tourism accommodations—primarily small, upscale ecolodges—in countries where the Global Sustainable Tourism Alliance (GSTA) is working. Unlike traditional private equity funds that pool capital, the Geotourism Investment Fund works with individual investors on project-specific basis—providing them with exciting joint-venture opportunities and a total return on investment. In the future, the Geotourism Investment Fund will evolve into an actively managed private equity fund—organized by shares instead of individual projects.

The Geotourism Investment Fund is helping to advance GSTA objectives of poverty alleviation and biodiversity conservation through providing an important source of joint-venture investment capital to develop sustainable accommodations options. The fund has already created a network of both traditional and philanthropic investors willing to commit equity to projects identified by the GSTA. In return, the GSTA provides technical assistance to address the principal causes of failure of small, locally owned accommodations and works in partnership with local communities to promote and provide a distinctive and authentic visitor experience. The seed investment capital provided through the fund combined with local entrepreneurship and technical assistance support from the GSTA has the ability to achieve powerful results.

The Geotourism Investment Fund coined the term “Philanthropic Investor” to describe socially and environmentally conscious investors with both moral and financial objectives. Their typical investment objective is to earn a modest financial rate of return for risks incurred while using capital in shared pursuits with local entrepreneurs (or communities) to better the lives of individuals living in developing countries.

Another defining characteristic of philanthropic investors is the desire to rapidly exit from their investments so that funds can be reinvested in new start-ups. Once equity has been provided to a project, the goal is to transfer 100% ownership to the local community as quickly as possible so that local residents may experience the greatest economic benefits. There are two principle strategies for investors:

1) return of investment, and return on investment, through project cash flows, and/or

2) buy-out, through purchase of shares by local communities.

If you are interested in learning more about how you can support the Geotourism Investment Fund, please contact us at info@geotourismfund.com.