Two Belgian fund managers, Inpulse Investment Manager and Funds For Good, are jointly launching the ImpaktEU investment fund, which aims to support the development of players in microfinance and social entrepreneurship in Europe and specifically in Belgium. The Federal Holding and Investment Company (FPIM) will invest in the fund as soon as it reaches a size of 20 million euros, the initiators report in a press release.
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The two initiators point to major challenges for society, such as the poverty risk and the increasing inequality that leads to social tensions and the rise of populism. Ecological challenges, in turn, are climate change and the loss of biodiversity. The economic consequences of the corona crisis only exacerbate those challenges, it sounds.
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There are players who are working to build a more inclusive, fairer and more sustainable society and economy, but they don’t have enough resources to grow, they say. Inpulse Investment Manager and Funds For Good want to support these initiatives.
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economy
Microfinance and social entrepreneurship are important levers for creating or maintaining jobs in volatile economies. The ImpaktEU investment fund aims to support the development of players in microfinance and social entrepreneurship. The fund will primarily offer debt financing solutions.
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The FPIM, the government investment company, will invest in the fund as soon as it reaches a size of 20 million euros. In particular, the FPIM will release two tranches of EUR 5 million for each tranche of EUR 20 million raised from private investors. In exchange, the fund will invest at least 10 million euros in Belgium.
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ImpaktEU invests in direct lines (shares, loans, convertible loans) in microfinance institutions, ethical banks or financial intermediaries targeting social enterprises. It can also invest in small-scale private equity funds.
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The fund’s anticipated launch date is July 2021. The expected annual return is 2.5 percent to 3.5 percent net of fees.
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