Schroders has taken a majority stake in BlueOrchard, an impact investment manager that manages approximately £2.3bn in assets and operates in emerging and frontier markets worldwide.
BlueOrchard impact investment solutions across multiple asset classes, including credit, private equity, and sustainable infrastructure and is an expert in innovative 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.”
BlueOrchard chairman Peter A. Fanconi 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 chief executive officer Patrick Scheurle 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.”