Triple Jump is proud to announce the launch of the Triple Jump Financial Inclusion Resilience Fund (FIRF). The fund will focus on providing subordinated debt to financial intermediaries serving Micro, Small and Medium-sized Enterprises (MSMEs) and low-income borrowers in emerging markets. FIRF aims to serve as a catalyst to improve the solvency position of these financial intermediaries, allowing them to continue and increase their lending activity to MSMEs and low-income borrowers.
Access to appropriate financial services allows low-income entrepreneurs – women in particular – to improve their financial resilience and seize opportunities to grow their businesses.
At first closing, FIRF reached USD 72M, with a target final size of USD 120M. The fund is currently building up its portfolio and targets to disburse USD 15M during the first quarter of 2023.
Orsolya Farkas, Equity Manager at Triple Jump: “The financial inclusion sector has a strong track record of resilience, and quickly moved to successfully manage the liquidity crisis triggered by Covid-19. However, in the aftermath of the pandemic, solvency challenges have emerged, delaying recovery and hindering the growth of lending to MSMEs. We saw an unmet capital need in the market, and FIRF has been created in order to deploy subordinated debt quickly and at scale to strengthen the capital buffers of financial institutions, allowing them to respond to the financing needs of their clients.”
FIRF is powered by the Dutch Good Growth Fund (DGGF). The DGGF supports FIRF as a cornerstone investor as FIRFs objectives strongly align with DGGF’s mandate in building back an inclusive financial sector and offering a Covid intervention with a systemic change angle. Furthermore, DGGF endorses the provision of subordinated debt as it offers a leverage effect and builds lender confidence.
For the first closing, DGGF’s investment was leveraged by the ASN Microkredietfonds, that entered as a Noteholder. The U.S. International Development Finance Corporation (DFC) has committed to providing a USD 48M senior loan to the Fund.
Clemens Gerteiser, Director Fund Investments at Triple Jump: “DGGF is proud to have anchored this initiative. Taking risk in these volatile times is the core of our mandate, and it needs a pioneering initiative like FIRF to contribute to Covid recovery at scale. This project wouldn’t have been possible without fantastic work of our client and our Consortium Partner PwC.”
Sascha Noé, Fund Manager ASN Microkredietfonds: “After over 15 years of collaboration with Triple Jump in the MSME finance sector, we are excited to support the Financial Inclusion Resilience Fund. Subordinated debt is a high impact financing instrument and we see added value for a dedicated fund in the market. We are particularly pleased to see FIRF’s focus on empowering women.”
“DFC has had a long and productive relationship with Triple Jump,” said James Polan, DFC Vice President for Development Credit. “Our commitment to the innovative Financial Inclusion Resilience Fund will reach vulnerable populations that were heavily hit by COVID-19, including women and rural borrowers.”
- Contact Triple Jump via [email protected]
About Triple Jump
Triple Jump is a Dutch impact-focused investment manager with local presence in Lima, Mexico City, Nairobi, Tbilisi and Bangkok. We provide meaningful investment opportunities in emerging markets, contributing to a more responsible and inclusive financial sector which, in turn, can help solve some of the biggest challenges of our time. With over USD $1 billion in Assets Under Management, funds managed and advised by Triple Jump provide financing across development themes such as financial inclusion, affordable housing, missing middle finance (SMEs), and climate and nature.
About the Dutch Good Growth Fund (DGGF)
The DGGF aims to improve the access to finance for ‘missing middle’ SMEs in selected countries by investing through funds and other financial intermediaries that have the relevant capacity and local presence to directly reach out to companies in the DGGF’s target markets. The ‘missing middle’ refers to entrepreneurs whose financing needs are neither served by microfinance nor by conventional capital market players. In addition, the DGGF aims to reach out to underserved markets, foster innovative financing products, and invest in vulnerable target groups (young and female entrepreneurs and entrepreneurs in fragile states that face high barriers to attracting capital). Since 2014, a consortium of Triple Jump and PwC is responsible for managing the Dutch Good Growth Fund (DGGF) Part: ‘Investment Funds local SMEs’ on behalf of the Dutch Ministry of Foreign Affairs.
About ASN Microkredietfonds
The ASN Microkredietfonds provides access to financial services for people with low incomes and micro-, small and medium-sized enterprises in low- and mid-income countries so that they can earn a larger income and strengthen their financial resilience. The fund focuses particularly on improving the position of women entrepreneurs and the disbursement of loans in rural areas. The fund invests in approximately 85 microfinance institutions throughout the world, which together issued 15.5 million microcredits in 2022. In its 26 years of its existence, the fund has helped reduce poverty, increase employment opportunities and develop local economies.
U.S. International Development Finance Corporation (DFC) is America’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.