Spanish insurance group MAPFRE is set to launch a new find aimed at supporting economic growth in emerging nations.
MAPFRE AM, the manager of the insurance group, and Global Social Impact Investments (GSI) are combining to provide financing to companies with high social impact on both frontier and emerging markets.
The have created an open private debt fund, the Global Social Impact Fund (GSIF), which will initially focus on consolidated business models in sub-Saharan Africa and will potentially expand to Latin America.
The vehicle, which aims to reach €50 million euros initially, will be managed by GSI and has Santa Comba and MAPFRE as its main investors. MAPFRE AM will take on the role of investment advisor.
The fund, which has an annual profitability target of between 5 and 8 percent and with annual liquidity from 2024, will focus on three main sectors: agriculture, energy and financial inclusion.
More specifically, most of the investment will take place directly in short-term loans and debt structures, although a margin of up to 25 percent of capital is left for investment through funds. MAPFRE goes one step further in its commitment to socially responsible investment.
“We are very excited about this project and we couldn’t have wished for a better partner for this. We believe that impact investment has a long way to go and, after the pandemic, socially responsible investment is going to emerge stronger, particularly investment made with social criteria,” says José Luis Jiménez, (pic) Chief Investment Officer at MAPFRE.