Schroders has competed its acquisition of a majority stake in BlueOrchard Finance, an impact investment manager.
BlueOrchard manages approximately USD3.5 billion in assets and operates in emerging and frontier markets worldwide and offers its investors premium impact investment solutions across multiple asset classes, including credit, private equity, and sustainable infrastructure. Blue Orchard specialises in blended finance mandates.
Founded in 2001, it was the world’s first commercial manager of microfinance debt investments.
Schroders’ Group Chief Executive, Peter Harrison, says: “BlueOrchard’s business demonstrates the positive impact financial markets can have on improving society. I am delighted that Schroders will be able to help support the many initiatives BlueOrchard has in targeting the United Nations’ Sustainable Development Goals.
“BlueOrchard’s work in microfinance and with development agencies both provides investors with the potential for financial returns, and demonstrably benefits millions of people in emerging markets.
“Impact investing will be a mega trend, as our clients want to use their assets to do more than just earn returns and Schroders is now at the leading edge of this.”
Schroders’ Global Head of Private Assets, Georg Wunderlin, says: “This partnership demonstrates our commitment to the increasingly important sustainability and broader impact investing space. BlueOrchard is a pioneer in impact investing in emerging markets and operates a range of capabilities across microfinance, impact bonds, private equity and infrastructure investments. We are looking forward to supporting BlueOrchard’s further growth path as part of the Schroders Group.”
Peter A Fanconi, Chairman of BlueOrchard, says: “Being pioneers in microfinance and impact investing, we have built a high-quality, specialist impact investment solutions business over the past 20 years.
“BlueOrchard’s Board of Directors, which in its new composition will consist of both BlueOrchard and Schroders representatives, will support the firm to further flourish its business and provide an excellent service to BlueOrchard’s clients over the long term.”
BlueOrchard’s Chief Executive Officer Patrick Scheurle (pictured), says: “Impact investing is about merging the best of two worlds; achieving attractive investment returns but also achieving a social or environmental goal such as tackling climate change or reducing poverty.
“Schroders has a long-term and strong commitment to sustainability and we are confident that this partnership will further enable BlueOrchard to bring impact investing into the mainstream market.”
Schroders and BlueOrchard announced in July that they had entered into an agreement under which Schroders would acquire a majority stake in BlueOrchard.
