PRESS RELEASE: Dutch Pension Fund ABP to Invest $75m in BlueOrchard

Source: BlueOrchard.

Original press release available here.

GENEVA and AMSTERDAM, August 28 – Pension fund ABP, one of the world’s largest pension funds, has committed USD 75 million to the Private Equity Fund managed by BlueOrchard, the world’s leading commercial microfinance investment manager.

ABP, the leading European private investor in microfinance, chose to partner with BlueOrchard and invest in its first private equity microfinance fund. “The rare experience and accumulated knowledge of BlueOrchard in this very specific industry and its professional team clearly defined BlueOrchard as a partner of choice”, remarked Mr Jan van Roekel, portfolio manager with the asset manager of the pension fund ABP.

ABP has already invested USD 40 million in BlueOrchard Debt Funds since 2005. “These investments are particularly fit for a pension fund as a risk diversifier. They have so far proven to be relatively non-correlated with most other asset classes and it appeared natural to follow-up with an investment in private equity, a most needed form of financing in this industry”, added Jan van Roekel.

Jean-Philippe de Schrevel, CEO of BlueOrchard Investments, the private equity advisory arm of the BlueOrchard group, said: “We are very proud to be working alongside ABP to fight poverty in the world through microfinance, a grassroots sustainable market-based approach for delivery of financial services to the working poor.”

Indeed, through this investment, ABP’s money will reach hundreds of thousands of micro-entrepreneurs in Latin America, Asia, Eastern Europe and Africa. “With this investment we expect to achieve high financial returns through responsible investments”, Jan van Roekel declared.

The BlueOrchard Private Equity fund is incorporated as a Special Investment Fund in Luxembourg and is capitalized at USD 111 million following ABP’s recent commitment. The Fund targets USD 220 million by the final closing date at the end of 2008.

The BlueOrchard Private Equity fund seeks to forge long-term partnerships with microfinance organisations across the world. It acquires minority stakes in their capital while playing an active governance role by sharing international experience, information, networks, knowledge and taking active part at board level. It is committed to achieve strong tangible social returns along with market economic returns.

The BlueOrchard Private Equity Fund is advised by BlueOrchard Investments, a microfinance private equity advisory company based in Geneva, Switzerland.

Investor confidence in the microfinance sector is increasing thanks to the impressive results it produced over recent years. In a volatile environment, the microfinance sector remained stable and productive.

As Jean-Philippe de Schrevel, co-founder of BlueOrchard explains, “at the heart of BlueOrchard’s success lie thorough risk and rewards analyses as well as long-term and in-depth relationships with microfinance institutions. The aim is a win-for-all outcome through a responsible and sustainable approach. Everyone at BlueOrchard cares deeply about this industry and its purpose: enabling the working poor to get access to financial services and thereby forge for themselves a brighter future. Our private equity fund will do no less than that.”

ABP is the pension fund for employers and employees in service of the Dutch government and the educational sector. With assets of more than EUR 200 billion, ABP ranks among the top three pension funds in the world. All of ABP’s assets are managed by a separate pension asset management company.

The BlueOrchard Private Equity Fund is a SICAV registered in Luxemburg in December 2007. It is entirely managed by its General Partner BlueOrchard Capital Sarl, Luxembourg. BlueOrchard Investments Sarl, Geneva, is the investment advisor of the General Partner. As at September 1, 2008, total assets under management of the Fund are USD 111 million.

The parent company, BlueOrchard Finance S.A. is a Swiss company based in Geneva whose mission is to manage microfinance investment funds. It helps investors gain access to investment opportunities in the microfinance sector through a diversified range of products and services.

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