MICROCAPITAL BRIEF: BlueOrchard, Luxembourg Ministry of Finance, Schroders Partner on Public-private Environmental Sustainability, Biodiversity Fund

The Luxembourg Ministry of Finance, the UK-based Schroders Group and its Switzerland-based unit BlueOrchard Finance recently agreed to initiate a fund to raise public and private capital to promote “climate mitigation, climate adaptation, and the protection of water and biodiversity.” Finance Minister Yuriko Backes stated that the plan “supports sustainable investments and contributes to resilient economies in emerging markets.” BlueOrchard will serve as the fund’s investment manager, and Schroders will provide “portfolio and risk management services.” Additional details on the new fund – such as its target size – have not yet been released.

Founded in 2001, BlueOrchard’s goal is “generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors.” As of March 2022, the firm has disbursed USD 8 billion in private debt. Of the clients served by BlueOrchard’s investees, 80 percent are women, two thirds live in rural areas and 130,000 are students and educational institutions.

Founded in 1804, UK-based asset manager Schroders is a publicly traded firm with operations in 32 countries. As of 2021, it reports assets valued at GBP 732 billion (USD 991 billion).

By Hasnat Aslam, Research Associate

Sources and Additional Resources

BlueOrchard press release
https://www.blueorchard.com/luxembourg-ministry-of-finance-appoints-schroders-and-blueorchard-to-accelerate-climate-action-with-a-landmark-partnership/

Luxembourg Ministry of Finance homepage
https://mfin.gouvernement.lu

Schroders homepage
https://www.schroders.com

BlueOrchard homepage
https://www.blueorchard.com

Previous MicroCapital story on BlueOrchard
https://www.microcapital.org/microcapital-brief-blueorchard-launches-2nd-private-equity-fund-seeking-to-invest-300m-in-financial-inclusion-of-30m-poor-households-msmes/

Previous MicroCapital story on Schroders
https://www.microcapital.org/microcapital-brief-shroders-buying-controlling-stake-in-microfinance-investor-blueorchard/

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