The leading global impact investment manager BlueOrchard Finance Ltd (“BlueOrchard”), part of the Schroders Group, has launched the BlueOrchard Financial Inclusion Fund (“the Fund”), a private equity strategy aiming to foster the accessibility of financial services to low-income individuals and connecting millions of entrepreneurs in growth markets with investors. The SFDR Article 9 compliant Fund will invest in companies operating in the fields of microfinance, MSME financing, (micro-)insurance, and technology.
The Fund builds on BlueOrchard’s experience and track record of more than 20 years of investing in financial inclusion. By leveraging BlueOrchard’s unmatched network, dataset, and sourcing capabilities in emerging markets economies, the Fund will provide expansion capital to leading institutions in some of the fastest growing markets. With an active network of over 1000 financial institutions, deep sector and country expertise, and best-practice impact management framework, BlueOrchard possesses unparalleled visibility and know-how to accelerate financial inclusion whilst generating competitive returns for investors.
“Our latest private equity fund offers investors the opportunity to invest in high-quality institutions, that we have identified during our 20-year journey of driving financial inclusion in some of the fastest growing markets. This strategy enables us to further accelerate the expansion and digitization of leading financial institutions, while driving the inclusion of millions of entrepreneurs and individuals in the financial system,” said Philipp Mueller, BlueOrchard’s CEO.
This is BlueOrchard’s second private equity fund, having fully deployed a climate insurance focused private equity strategy earlier this year. The new Fund is targeting to extend financial services to up to more than 30 million low-income individuals and MSMEs, contributing to the achievement of the UN Sustainable Development Goals.
“We see increased interest from investors in financial inclusion and for good reasons: Emerging market financial services have been growing strongly for most of the past two decades. This is particularly true for firms that are active in financial inclusion, providing services to previously unserved and underserved populations and businesses. On average the firms in BlueOrchard’s portfolio have grown their assets more than fivefold over the last decade. By providing the expertise and capital for growth, private equity offers excellent access to these predominantly unlisted companies. The Fund, managed by a highly experienced team, is well positioned to leverage this potential for impact and return,” said Felix Hermes, Head of Private Equity and Sustainable Infrastructure at BlueOrchard.
