MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--TriLinc Global Impact Fund (TGIF) announced today funding of $25 million from existing investor, Luxembourg–based Blue Orchard Impact Investment Managers (“Blue Orchard”) and $25 million from a new investor, the Cologne, Germany based investment group KfW DEG. Blue Orchard previously provided capital to two funds sponsored by TriLinc Global, LLC (“TriLinc Global”) for a combined total of $43 million. This initial tranche of $50 million for TGIF will be dedicated to financing growth-stage, small and medium-sized enterprises (“SMEs”) primarily in select developing economies. SMEs are significant contributors to the economies of developed countries and developing economies. SMEs represent the most developmentally critical sector for those markets, yet lack of access to capital is one of their biggest hurdles preventing them from growing, creating quality jobs and contributing to the further development of local healthcare, education and other community services.
“This investment from Blue Orchard Impact Investment Managers and KfW DEG confirms our strategy of investing in developing economies and significantly helps support our mission to harness the power of capital markets in solving global challenges facing our society,” commented Gloria Nelund, CEO and Founder of TriLinc Global. “By intentionally selecting investments with the potential for market-rate financial returns and positive measurement impact, TriLinc Global seeks to meet its goals to do well by doing good.”
According to World Bank figures, small and medium-sized enterprises as a group generate approximately 40% of national income in the developing world but the global credit gap for these enterprises totals $5.2 trillion1. KfW DEG and Blue Orchard will add $50 million to the funding TGIF can lend to SME’s in emerging markets.
TGIF currently has a net asset value of about $325 million and substantially all of the capital has already been lent to small and medium-sized enterprises. With the new facility provided by KfW DEG and Blue Orchard, TGIF will be able to lend to more companies, extending the Fund’s impact which includes the ability to provide medium-term capital needed by small and medium-sized enterprises in order to improve their operations, hire more people and expand their reach.
“We believe the socially responsible lending to small and medium-sized companies in emerging economies can strike a reasonable risk-return profile for investors. Our partnership with TriLinc Global supports our mutual goals of fostering smart and sustainable growth.” said Rolland Siller, CEO of KfW DEG.
Normunds Mizis, Chief Credit Officer of Blue Orchard said, “We believe by supporting TGIF, we can increase impact investing for a sustainable world. We are delighted to be partnering with the dedication and hard work of the TriLinc team in emerging markets.”
About TriLinc Global LLC
TriLinc Global (www.trilincglobal.com)
TriLinc Global is a female-founded, majority female-owned impact investing fund sponsor with a mission to link market-rate returns, positive impact, and scalable solutions. Through its deal origination and servicing partners, TriLinc Global has invested over $1.3 billion in private debt globally and seeks to demonstrate the power of capital markets in helping solve some of the world’s pressing socioeconomic and environmental challenges. The TriLinc Global funds provide growth-stage loans and trade finance to established small and medium enterprises (SMEs) in select developing economies where access to affordable capital is limited. Borrower companies must demonstrate the ability to pay market rates, pass TriLinc Global’s environmental, social, and governance (ESG) screens, and commit to tracking and reporting on self-identified impact metrics.
TriLinc Global complements its global macroeconomic portfolio organization and management with investment services from experienced deal origination and servicing partners that have established track records on target asset-classes and geographies, and access to high quality investment pipeline.
1 World Bank Group “Improving SME’s Access to financing and finding innovative solutions to unlock sources of capital” pulled July 2022