MICROCAPITAL BRIEF: BlueOrchard Raises $140m for “COVID-19 Emerging and Frontier Markets MSME Support Fund” from Schroders, Japan, UK, US

BlueOrchard Impact Investment Managers, a member of the UK-based Schroders Group, recently partnered with Schroders and three development finance institutions to launch an initiative to fund lenders serving micro-, small and medium-sized enterprises (MSMEs) in developing countries that have been disrupted by the COVID-19 pandemic. The group of investors, which has committed a total of USD 140 million to the fund, comprises asset manager Schroders; the Japan International Cooperation Agency; the UK-based CDC Group, formerly known as the Commonwealth Development Corporation; and the US International Development Finance Corporation. The target size of the fund is USD 350 million, and the plan is for it “to finance 20 institutions, serve 3 million microentrepreneurs and maintain 60 million jobs per each USD 100 million” raised. Switzerland’s State Secretariat for Economic Affairs is funding an associated technical assistance fund “to fast track the recovery of MSMEs even in the most vulnerable sectors and geographies.”

CDC Group CEO Nick O’Donohoe said “it is vital that financial support is made available to help preserve, strengthen and assist MSMEs to rebuild, in order to contribute to the long-term growth and economic stability in emerging markets.”

BlueOrchard was founded in 2001 and has eight active funds as of 2020. The firm has invested approximately USD 7 billion in 500 microfinance institutions and other impact-oriented organizations in 80 emerging markets since its inception. This includes USD 1 billion deployed in education and health as of 2020.

By Nathan Kiplagat, Research Associate

Sources and Additional Resources

Direct contact with BlueOrchard

BlueOrchard news release
https://www.blueorchard.com/blueorchard-announces-the-launch-of-a-covid-19-support-fund-that-aims-to-support-more-than-200-million-jobs-in-emerging-and-frontier-markets/

BlueOrchard homepage
https://www.blueorchard.com

BlueOrchard Impact Report 2019 – 2020
https://www.blueorchard.com/wp-content/uploads/BlueOrchard-Impact_Report_2019-2020.pdf

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