Verdant Capital, a pan-African specialist investment bank and investment manager, has announced a new investment advisory partnership with Invest in Visions GmbH (“IIV”) of Germany. Under the partnership, Verdant Capital will originate, prepare for the execution, and monitor investments for IIV’s funds investing in inclusive financial institutions (“IFIs”). Such inclusive financial institutions however include microfinance banks, non-banking financial institutions, credit-only institutions, leasing businesses, innovative or technology-driven credit businesses, as well as commercial banks that credibly serve Small Medium Enterprises.
This partnership is important to Africa because, in addition to microfinance, IIV invests in renewable energy and the financing of small and medium-sized enterprises (SME). Indeed, IIV focuses on investing in newly industrialized and developing countries and have funds under management in excess of USD 1 billion globally. It was founded in 2006 with the aim of providing access to impact investments to institutional and private investors.
The partnership will provide an important additional pathway of capital for Verdant Capital’s Specialist Funds platform. The principal aim of this platform is to alleviate the impediments to access to finance for micro, small and medium-sized enterprises across Africa by providing innovative and impactful funding solutions to inclusive financial institutions. Each funding solution targets meaningful financial and social returns. The partnership with IIV fits alongside the Verdant Capital Invoice Discounting Facility, a USD 30 million facility for financial institutions to grow their SME-focused receivables finance portfolios, and Verdant Capital Hybrid Fund, a USD 100 million fund to invest hybrid capital and subordinated debt into African financial institutions. Verdant Capital is seen as a stable investor aligned with globally recognized principles and best practices for impactful investing.
Edda Schröder, founder and managing director of IIV, described the newly formed partnership with Verdant Capital as a milestone for IIV’s expansion to Africa. He remarked that Verdant Capital shares IIV’s “values and fosters impactful funding solutions with social returns.” According to Schröder, the partnership helps IIV to further diversify its investment portfolio and expand its impact to African countries.
This article was adapted from a press release distributed by APO Group. You can start earning money by becoming our Independent Reporter or Contributor.
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