Original Source: ICCO
Capital 4 Development Partners, a Dutch fund manager, announced today the first closing of the USD 30 million Capital 4 Development Asia Fund (C4D Asia Fund). The Fund invests in innovative growth stage SMEs in India, Indonesia and the Philippines which aim to bring positive social, environmental and economic change in the lives of marginalized communities and targets a final closing at USD 50 million by end of 2019. The Fund will contribute to inclusive local economies by supporting SME companies that address and solve for local challenges and / or industry inefficiencies. Based upon a strong belief in the advancing effects of diversity, the Fund integrates a gender lens in its investment strategy and aims to invest at least 30 percent of its capital in SMEs owned or led by women. A variety of financing instruments, including private equity and mezzanine financing, will be used. The Fund benefits from a launching portfolio of 21 investments as well as an Investee Support Facility.
ICCO Cooperation, a leading Dutch NGO, is the sponsor investor of the Fund, providing de-risking features, such as a USD 10 million first loss facility and a preferred return rate for other investors. Besides ICCO, the first closing investors are the Dutch Good Growth Fund, FCA Investments and Investing in Women, an initiative of the Australian Government.
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