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BlueOrchard launches Impact Credit Fund

BlueOrchard launches Impact Credit Fund
  • The BlueOrchard Impact Credit Fund (“BOIC” or “the Fund”) complements BlueOrchard´s existing offering in financial inclusion.
  • Building on an extensive network and expertise in the fastest-growing regions and the significant capital needs in emerging markets, the strategy offers institutional investors the opportunity to invest in a multi-credit portfolio that seeks an attractive risk-adjusted return and offers diversification benefits.
  • As an SFDR Article 9 fund, BOIC aims at contributing to social inclusion and reduced inequalities by capturing “3D” megatrends in emerging markets: demographics, digitalisation, and decarbonisation.

BlueOrchard, the global impact investment manager and member of the Schroders Group, today announces the launch of its Impact Credit Fund. This new fund aims to further increase financial inclusion in underserved regions worldwide, strengthening BlueOrchard’s commitment to making a positive social and environmental impact.

The BlueOrchard Impact Credit Fund (BOIC) focuses on investing in a diverse portfolio of smaller financial institutions that play a crucial role in social and environmental development, encompassing a range of critical sectors such as SME lending, digital payment solutions, renewable energy, and energy efficiency as well as climate adaptation solutions, amongst others.

Building on BlueOrchard’s outstanding investment platform in financial inclusion, it will also engage in direct lending to medium-sized businesses that are significant players in their respective market segments, hereby helping to build and enhance the re-financing market for SMEs. To achieve this, BOIC leverages BlueOrchard’s extensive network and well-established relationships with local banks, development financial institutions, specialised investment funds or other professional private debt investors.

As an SFDR Article 9 fund, BOIC aligns with BlueOrchard’s mission to contribute to social inclusion and reduced inequalities. By capturing the “3D” megatrends in emerging markets, the BlueOrchard Impact Credit Fund addresses critical global challenges and contributes to sustainable development. The fund’s focus on demographics, digitalisation, and decarbonisation aligns with the growing demand for financial services, the increasing adoption of digital banking, and the substantial opportunities in green finance.

Philipp Mueller, CEO at BlueOrchard, commented:
We see three megatrends shaping fast-growing emerging markets today: demographics, digitalisation and decarbonisation. These developments are accompanied by significant capital needs and investment opportunities, which our regional teams are seeing first-hand. We are excited to have launched an investment strategy that captures these opportunities, fills a gap in terms of both funding and impact, and complements our investment platform.”

Michael Wehrle, Head of Investment Solutions at BlueOrchard, added:
“Our team of experienced portfolio managers, impact managers, and investment officers follow a rigorous and structured investment process, drawing on our 20+ year track record in financial inclusion to ensure effective investment strategies. We are proud of our team’s expertise and look forward to continuing to provide our investors with impact investment solutions tailored to their risk/return appetite.”

Through its strategic investments, BOIC aims to drive positive change and create a more inclusive and sustainable future. It is open to qualifying investors (subject to local regulation) through a range of share classes denominated in different currencies.

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About BlueOrchard Finance Ltd

BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 10 billion across more than 100 countries. Over 280 million underserved people and MSMEs in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of December 2022. For additional information, please visit: www.blueorchard.com.