MICROCAPITAL BRIEF: Canada’s Desjardins Group Launches Aequitas Fund with $38m to Advance UN Sustainable Development Goals Including Gender Equity, Climate Change Readiness

The Canadian cooperative Desjardins Group recently invested CAD 50 million (USD 37.9 million) to create the Aequitas fund, a private investment fund aimed at achieving gender equality, advancing climate change solutions and meeting other UN Sustainable Development Goals (SDGs). The fund will promote financial inclusion through provision of patient capital to marginalized groups. Fonidi Management, a subsidiary of Desjardins Group member Développement international Desjardins (DiD), will manage the fund. Desjardins Group plans to invest a supplemental amount of CAD 15 million (USD 11.4 million) upon the equity investment of the first external investor.

Aequitas’ impact investments – which may be combined with technical assistance in the future – are targeted at financially disadvantaged populations, with a focus on women, youth, farmers, and micro- and small enterprises (MSEs) across Africa, Asia and Latin America. “By focusing on marginalized populations and helping to channel capital to those who need it most, the fund will simultaneously support sustainable economic recovery and foster diversity and inclusion,” noted Guy Cormier, the President and CEO of Desjardins Group.

Desjardins Group serves 7 million members and clients with services such as retail banking, wealth management, securities brokerage, venture capital and asset management. As of June 2020, the group reports total assets of CAD 350 billion (USD 266 billion), a gross loan portfolio of CAD 207 billion (USD 157 billion) and deposits of CAD 220 billion (USD 167 billion).

Founded in 1970, DiD is a Canadian nonprofit corporation that seeks “to provide disadvantaged communities around the world with access to secure, diversified financial services.” It specializes in providing technical support and investment for the community finance sector. The NGO has worked in 65 nations across Africa, Asia, the Caribbean, Central and Eastern Europe and Latin America. DiD is engaged in projects worth approximately CAD 30 million (USD 22.7 million) annually and has CAD 35 million (USD 27 million) in funds under management as of 2020.

By Romil Pandey, Research Associate

Sources and Additional Resources

Desjardins press release
https://blogues.desjardins.com/press_release/2020/10/desjardins-launches-a-new-50-million-impact-fund-for-developing-countries.php

Desjardins homepage
https://www.desjardins.com/

DiD home page
http://did.qc.ca/

UN SDGs homepage
https://www.un.org/sustainabledevelopment/

Past MicroCapital brief on DiD
https://www.microcapital.org/microcapital-brief-abaco-savings-credit-cooperative-of-peru-borrows-1-5m-from-desjardins-fund-for-inclusive-finance/

Desjardins Group Financial Report, June 2020
https://www.desjardins.com/ressources/pdf/d50-rapport-trimestriel-mcd-2020-2-e.pdf?resVer=1597161584000

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