Impact investor Incofin Investment Management (IM) has launched a new global fund dedicated to invest in microfinance firms in developing and emerging countries. Although the firm has not stated a target corpus for the fund, it said this is being specifically targeted at institutional investors as against many impact funds which tend to source money from high net-worth individuals and families.
Christened ProPulse Fund, it is designed to make debt investments in microfinance institutions and will address the large demand for local currency loans.
It will invest in developing countries in Africa and Middle East, South America, Central America and the Caribbean, Central and Eastern Europe, Newly Independent States (NIS) besides South Asia and Southeast Asia. The ProPulse Fund plans to make its first investments in the Caucasus region and in Central America.
The fund has already received investment from a large European pension fund and it is chasing stable single digit returns with low volatility and offers frequent redemption possibilities in combination with exposure to a diversified portfolio in terms of regions, countries and investees.
“This marks an important step in Incofin IM’s history, as we continue to expand and diversify our investor base,” said Sara Vermeir, director business development of Incofin IM.
Incofin IM advises investment funds with a double bottom line which pursue social and financial results and has more than $550 million under advice. It invests in microfinance institutions besides organisations and companies in developing countries which generate developmental impact.
Other similar funds in the impact/social investment sphere include Acumen, Lok Capital, Khosla Impact Fund, Aavishkaar, Unitus and Omidyar.
Incofin has in the past backed Annapurna Micro Finance, Fusion Microfinance, Arman Financial Services, Hope MicroCredit Finance and Asomi Finance in India, according to VCCEdge, the data research platform of VCCircle.
The Belgian investment firm had also previously invested in Grameen Koota and recently exited the company.
(Edited by Joby Puthuparampil Johnson)