PRESS RELEASE: Social Investor responsAbility and Swiss Investment Fund for Emerging Markets (SIFEM) to Offer New Private Equity Vehicle Investing in SMEs in Poor Countries

Source: responsAbility.

Original press release available here.

ZURICH, December 6 – Zurich-based social investment specialist responsAbility has joined forces with the Swiss Investment Fund for Emerging Markets (SIFEM) to add a new private equity investment to its offering. Credit Suisse, Switzerland’s State Secretariat for Economic Affairs (SECO), and Basel private bank Baumann & Cie are all taking part in the initial closing.

Small and medium-sized enterprises (SMEs) are often excluded from access to financial services in developing and transition countries. While they are large enough to qualify for loans, what they really need to expand is an adequate equity base – which means venture capital. At present most do not have access to this type of funding, especially from private international sources. responsAbility, the Zurich social investment specialist, is now partnering the Swiss Investment Fund for Emerging Markets (SIFEM) to close this gap and create a new investment opportunity for institutional investors. The market launch has the support of strong financial partners such as Credit Suisse, Baumann & Cie, Banquiers, and the Swiss State Secretariat for Economic Affairs (SECO). More than USD 30 million has already been raised in the initial closing. SIFEM, which acts as co-manager, brings outstanding expertise in the private equity business in the countries targeted by the partnership.

Microfinance has highlighted in impressive fashion the significant economic potential that exists at the base of the pyramid. Like microfinance, investments in SMEs in developing and transition countries are doubly interesting: as an investment in the growth markets of tomorrow, with the attending diversification benefits, and as a means of making a concrete contribution to development. This is because SMEs also play an important role in developing and transition countries in terms of providing jobs and driving local value creation.

Klaus Tischhauser, CEO of responsAbility, says: “The difficulty of accessing long-term is inhibiting the development of small and medium-sized businesses in developing and transition countries. But these companies are an attractive future market with sustainable potential for both sides – potential that has so far gone largely untapped by international investors.”

Claude Barras, Managing Director of SIFEM, comments: “By combining our private equity know-how with responsAbility’s expertise in the field of microfinance we have been able to create a new option for institutional investors that will enable them to diversify at attractive terms.”

Dr. Arthur Vayloyan, Head of Private Banking Investment Services and Products at Credit Suisse, says: “With this investment we want to help build a sustainable economic foundation in developing and transition countries. This extends our engagement in microfinance – an area in which we have been involved for many years – and makes an attractive diversification opportunity available to our qualified investors.”

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