Developing World Markets (DWM) has secured commitments of US$90.4 million from three Nordic financial institutions to invest in low-income countries, many hit hard by the global pandemic.
Its investments will fall within the framework of the UN Sustainable Development Goals (SDGs), a set of 17 goals designed to stimulate action through 2030 in areas of critical importance for humanity and the planet.
The commitments come from three of the largest insurance and pension providers in the Nordic region -- Skandia Mutual Life Insurance Company, Kåpan Pensioners and Nordea Life & Pensions – and will be deployed using DWM's impact investment strategy focused on sectors and themes aligned with the UN SDGs guidelines.
Through this investment strategy, DWM, a U.S.-based impact asset manager, will provide local currency debt financing to benefit low-income communities in emerging and frontier markets .
The loans will be extended to 'inclusive' financial institutions for on-lending to SDG-aligned sectors, or in some cases directly to companies providing SDG-aligned products or services. Inclusive financial institutions are banks, microfinance institutions, SME lenders and other financial institutions that serve low-income or underserved segments of the population.
Target beneficiaries are mainly clients of the inclusive financial institutions, --micro, small and medium-sized enterprises as well as women and minority-owned businesses across various sectors and thematic areas including sustainable agriculture, education, housing, health, renewable energy, displacement and water and sanitation.
These 'impact investments' will seek commercial, risk-adjusted returns into high impact, socially responsible businesses.
The $90.4 U.S. million anchor investment in DWM's impact strategy comes as the health and economies of many emerging and frontier markets are under stress from COVID-19. It demonstrates the commitment of Skandia, Kåpan and Nordea Life & Pensions and a growing interest across the Nordic region to impact investing. They seek investment returns alongside social or environmental benefits.
"DWM is very pleased to work with our partners, Skandia, Kåpan and Nordea Life & Pensions, to support productive investment, at a moment of critical need for the economies and people of the developing world to help them build more resilient and equitable societies," said Peter Johnson, co-managing partner of Developing World Markets.
"DWM's impact investment strategy aims to do so, with measurable results."
About Developing World Markets
Developing World Markets is an impact asset manager with more than two decades of experience in emerging and frontier markets. Through DWM Asset Management, LLC, the firm's SEC-registered investment adviser, DWM has originated and managed more than $2 billion of private debt and private equity in impact-oriented enterprises.
This includes more than 600 loans and 25 private equity stakes in more than 40 emerging and frontier countries. The firm operates from its headquarters in Stamford, Conn., and is supported by offices and team members in Delhi, Lima, Managua, Nairobi, Quito, San Jose (Costa Rica) and Singapore as well as in Japan, France, Germany and the Netherlands.
It is a non-EU AIFM, with vehicles regulated by Luxembourg's CSSF and Germany's BAFIN, and long-standing partnerships in the Netherlands and Germany. It also has relations with institutional investors across the continent. DWM is dedicated to serving its European investor partners, with a shared commitment to impact.
