I think there are two considerations. CIV can be the right choice if
- there is a unique business model or an innovation – that can’t be easily replicated by oneself but the likelihood and the potential for scalable impact is considerable. However, investments on a majority basis can be difficult since it requires strong and clear accountability structure in the buying company to manage this investment well.
- a company recognizes a need for systems strengthening that is required to make the own business work. Such an investment would however only make sense if the investment would be catalytic and on a minority basis since otherwise the management of the investment requires too much resources and can also create conflicts of interests.