PG Impact Investments, the global impact investment firm, has made its first investment in the financial inclusion sector on behalf of its clients through an investment with BlueOrchard Finance Ltd (“BlueOrchard”).
PG Impact Investments will support microfinance institutions (MFIs) worldwide through an investment in the BlueOrchard Microfinance Fund. In addition, PG Impact Investments has agreed a bespoke joint-venture arrangement with BlueOrchard to jointly invest directly in select MFIs. These investments will enable MFIs to strengthen their capital structures, develop new loan products, and responsibly expand their reach to underserved market segments.
Access to basic financial services is a challenge for over two billion people worldwide. As a result, they are constrained in their productivity, unable to invest in solutions to meet basic needs, and remain vulnerable to small financial shocks. Globally, there are hundreds of MFIs, at varying stages of development, engaged in the provision of affordable services to the “unbanked” in a responsible manner.
Patrick Scheurle, CEO of BlueOrchard Finance Ltd, says: “We are proud to be a partner of choice for PG Impact Investments’ initial financial inclusion activities and look forward to working together towards our shared vision of a fairer and more accessible financial services industry worldwide.”
Urs Baumann, Co-Founder and CEO of PG Impact Investments, adds: “We recognize the importance of client protection and social performance management while supporting MFIs in their growth. Through leveraging the respective strengths of our organizations, PG Impact Investments and BlueOrchard are well positioned to support the further, responsible development of this important social impact sector.”
About PG Impact Investments
PG Impact Investments was founded in 2015 with the vision that private investment, innovation and entrepreneurial talent can provide solutions to the challenges faced by our society, as well as create sustainable growth. PG Impact Investments is a private sector, mission-driven, global investment firm specializing in investment solutions aimed at delivering financial returns as well as creating a positive social and/or environmental impact. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges. All profits from the business activities of PG Impact Investments are transferred to PG Impact Investments Foundation. The Foundation supports social initiatives and social businesses ventures that otherwise would not receive funding through commercial investors or investment funds. Whilst being independent from Partners Group, PG Impact Investments entities are backed by Partners Group and its employees, and benefit from the global infrastructure, investment know-how and specialist resources of this leading global private markets investment manager. www.pg-impact.com
About BlueOrchard Finance
BlueOrchard Finance Ltd. is one of the world’s leading impact investment managers and is specialized in fostering inclusive finance and sustainable growth. BlueOrchard was founded in 2001 by initiative of the UN as the first commercial manager of microfinance debt investments worldwide. To this day, the company has invested USD 3.5 billion in institutions across 60 emerging and frontier markets, providing access to financial and other services to over 26 million individuals at the bottom of the pyramid. BlueOrchard-managed funds drive attractive double-bottom line returns for private and institutional investors, supranational institutions as well as renowned foundations. BlueOrchard Finance Ltd is a licensed asset manager authorized by the FINMA and its Luxembourg entity is a licensed alternative investment fund manager (AIFM) authorized by CSSF. www.blueorchard.com