Partners for Growth will create an investment vehicle targeting emerging markets

(Ecofin Agency) – The coronavirus has reduced credit offers in emerging markets. In this context of risk aversion, Partners for Growth wants to boost the private debt market.

The American fund manager Partners for Growth (PFG) will soon set up an investment vehicle dedicated to innovative companies operating in emerging markets, including Africa.

The fund, whose target size has not been disclosed, will receive its first commitment ($30 million) from the International Finance Corporation (IFC). It will specifically target start-up and start-up companies focused on the fintech, software, logistics, healthcare and life sciences sectors. The amount to be allocated to each company was also not specified.

Our partnership with PFG will play a key role in improving access to finance for deserving high-growth technology companiessaid Paulo de Bolle, Global Senior Director of IFC’s Financial Institutions Group.

The coronavirus pandemic has increased uncertainty and risk aversion in emerging markets. It therefore reduced the volume of credit available to SMEs in these markets. But, for PFG, said markets harbor some of the most exciting opportunities since companies can “creating new categories and pioneering solutions that make an impact.

Thus, the investment vehicle should stimulate the private debt market in the targeted countries.

Chamberline MOKO

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