Maj Invest Announces First Closing of
Maj Invest Financial Inclusion Fund III – USD 137m
Maj Invest Financial Inclusion is pleased to announce the first closing of MIFIF III with total commitments of USD 137 million. After a decade of experience this is the third fund with the same consistent financial-first impact investment strategy. The two predecessor funds both have excellent track in terms of financial return and ESG impact.
The fund has received strong support from Danish investors, in particular PKA as cornerstone investor.
Maj Invest Financial Inclusion will continue its strategy of investing directly with growth equity in the top segment of financial institutions servicing a client group of 3-4 billion people below the middle class in selected countries in Latin America, Africa and Asia, with focus on India. The financing gap between demand and supply in the financial inclusion sector is huge, with only a fraction of the potential trillion-dollar market served, creating a significant potential of growth in the industry.
Kasper Svarrer, Managing Partner for Financial Inclusion at Maj Invest, says: “the sector is growing significantly and becoming increasingly efficient because of the FinTech and digitization development, improving the potential for outreach to new clients and lowering distribution costs.”
The pipeline is very attractive due to the team’s well-established position in the market. Targets must have a high portfolio quality with an effective credit policy and loan collection procedures and have a well-established ESG impact strategy adhering to international standards.
The fund focuses on the environmental impact in terms of climate change adaptation and mitigation measures. The client group is particularly vulnerable to the effects of climate change, especially clients living in rural areas, and the provision of adaptation measures by the portfolio companies is key. The social impact is measured via social indicators such as outreach, client protection, employment and community development, whereas good corporate governance is ensured via board participation and internal controls.
Kasper Svarrer, Managing Partner Financial Inclusion
+45 33 38 73 60