The Palestinian Impact Initiative (PII) is a rapid-response catalytic capital fund whose purpose is to be a source of economic stabilization and recovery for entrepreneurs in the West Bank, with expansion to Gaza as future conditions allow. Addressing vulnerabilities in the Palestinian economy, particularly through support to small- and medium-sized enterprises, is essential to lay the foundation for a resilient and equitable economic future.
Highlights
$5M pilot fund that will invest integrated capital – primarily patient equity – into early stage and growth enterprises owned by Palestinian entrepreneurs in the West Bank.
$5 million
target pilot fund
30+ investments
small – and medium – sized enterprises
7 years
fund term
West Bank
geography
Stabilizes
the economy
Preserves
jobs
Fills the
capital gap
Strengthens productivity
Innovative Finance to Fill the Gap
PII utilizes an innovative financing instrument called a Shareholder Loan Investment that includes both debt and equity components, essentially functioning as revenue-based finance. This approach aligns the interests of investor and investee, helping to overcome the mismatch in capital supply and demand. The initial source of capital is a philanthropic special purpose vehicle that pools grants and low-interest debt to provide catalytic, risk-tolerant investment.
Investment Themes With High Social Impact
PII Fund I is sector agnostic, but priority will be given to enterprises that have a high social impact, such as: retaining and growing jobs, particularly for vulnerable populations; strengthening climate resilience; and offering community-centered products and services.
Sector Priorities
- Agriculture and Food Processing
- Climate, Energy and Ecology
- Education and Childcare
- Manufacturing and Construction
- Technology and Innovation
Social Impact Factors
- Number and profile of employees
- Women-owned or run businesses
- Youth-owned or run businesses
- Economic inclusion
- Ecological sustainability
Three Organizations,
One Shared Initiative
Impact Charitable is a 501c3 nonprofit and donor-advised fund platform that offers philanthropic tools and capital-ready investment opportunities. It is dedicated to filling the gaps by collaborating with public and private funders who want to mobilize assets into communities in creative and impactful ways.
Principles for Peace (P4P) is a Swiss-based global peacebuilding foundation dedicated to shaping the future infrastructure of peace: advancing legitimacy-based standards, building tools for real-time course correction and convening coalitions that connect local actors with regional and global decision-making.
The Middle East Investment Initiative (MEII) is a 501c3 dedicated to stimulating economic growth and job creation through sponsoring and managing development finance. Its Ramallah office is staffed with multi-disciplinary, multi-lingual and multi-cultural professionals with program management, legal and finance expertise.