India-based Northern Arc Investments recently completed the first close of its eighth fund, the Northern Arc India Impact Fund, which is its first fund to accept investments from outside the country. The firm plans to use the five-year debt fund to support Indian lenders for microenterprise, small business, agri-business and vehicles. Northern Arc Investments has raised USD 23 million for the India Impact Fund and will look to increase this to a total of USD 100 million to USD 150 million. By 2021, the company plans to execute 15 to 20 investments from the fund, with an average deal size near USD 4 million. The anchor investors in the fund include the Netherlands’ Anthos Fund & Asset Management, US-based Calvert Impact Capital, and Switzerland-based PG Impact Investments. The names of the other investors have not been released.
Established in 2014, Northern Arc Investments is a wholly owned subsidiary of Northern Arc Capital. Prior to this close, Northern Arc Investments was managing INR 1,800 crore (USD 260 million) deployed in the financial inclusion sector via seven debt funds. Founded in 2008, Northern Arc Capital is a non-banking financial company that has raised INR 55,000 crore (USD 8 billion) for 157 partners since its inception.
PG Impact Investments was founded in 2015 and is an affiliate of Partners Group (PG), an investment management firm. PG Impact Investments focuses on emerging markets, where it seeks to “invest in the growth of attractive social enterprises with a proven business model, high development potential and a measurable and scalable social or environmental impact.” During 2018, PG Impact Investments held committed capital of USD 98.8 million and completed 20 investments.
Anthos is an asset management company that was established in 1929. The firm is a member of Cofra Holding AG, a Swiss company owned by the Brenninkmeijer family. Neither of these firms publishes the volume of its holdings.
Calvert Impact Capital is a nonprofit institutional investor active in affordable housing, agriculture, community development, education, environmental sustainability, health, microfinance and renewable energy. The organization’s portfolio was valued at USD 400 million at the end of 2018.
By Ng Chee Meng, Research Associate
Sources and Additional Resources
Norther Arc press release
https://www.northernarc.com/assets/uploads/pdf/Fund-8-First-Close—Final-Press-Release-1583741865.pdf
Northern Arc homepage
https://www.northernarc.com/
PG Impact Investment webpage
http://pg-impact.com/
PG Impact Investment 2018 annual report
http://pg-impact.com/2019/06/26/pgii-annual-impact-report-2018/
Cofra Holding homepage
https://www.cofraholding.com/
Calvert Impact Capital homepage
https://www.calvertimpactcapital.org/
Anthos Fund & Asset Management Linkedin page
https://www.linkedin.com/company/anthos-fund-&-asset-management-b.v./about/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Sanad Fund for MSME Raises $26m from ASN Bank, Calvert Impact to Boost Financial Inclusion, Resilience in MENA
- MICROCAPITAL BRIEF: Accion, Sturgeon Lead $6.4m Equity Round for Trukkr, Fintech Serving Trucking SMEs in Pakistan
- MICROCAPITAL BRIEF: DPAM, Korys Buy Equity in Incofin Investment Management to Boost Impact, Including Via Climate, Gender Funds
- MICROFINANCE EVENT: Global Impact Investing Network (GIIN) Impact Forum; October 4-5, 2023; Copenhagen, Denmark
- MICROCAPITAL BRIEF: Ilu Women’s Empowerment Fund Invests $1m in Acceso Financiero for Microfinance in Honduras
