Dutch fund manager Privium, development bank FMO and ABN Amro have launched a fund to help small and medium enterprises (SMEs) in developing countries access credit.
The new FMO Privium Impact Fund will offer clients of ABN Amro, starting from those of its private bank in the Netherlands, ABN Amro MeesPierson, the opportunity to co-invest in loans to private-sector companies in emerging markets.
“The FMO Privium Impact Fund is a solution from which clients can expect both financial and social returns, with regular liquidity. It is a very interesting opportunity for our clients to co-invest with a bank like FMO, which has a good track record in emerging market loans,” explains Solange Rouschop, global head of investment services and sustainability at ABN Amro Private Banking.
“By providing a loan to a local bank in Bangladesh, for example, this bank has the opportunity to offer credit to more local SMEs. This increases the chances of these entrepreneurs to be successful and to create jobs within their companies. So one loan does not only help the local bank, but an entire community,” says Yvonne Bakkum, managing director of FMO Investment Management, which will act as investment advisor to the fund manager. “‘The impact is scalable because of the business volumes of FMO and the significant unmet demand for long-term finance in emerging markets,” she adds.