Dear Clients, Partners and Colleagues,
We are pleased to announce that Sustainability | Finance | Real Economies – the Company, for which Enclude acted as designer, structuring advisor and placement agent, was launched in Paris last Wednesday. The announcement was made during the annual meeting of the Global Alliance for Banking on Values (GABV), Enclude’s client and the initiator of the fund. We share a few highlights below; the GABV press release can be found at this link.
- The first close of just over $40 million attracted a group of 21 private sector investors including Church of Sweden, Skopus Impact Fund, The F.B. Heron Foundation and 15 member banks of the GABV.
- The open-ended fund, known as SFRE and pronounced “Sapphire,” is the first global investment company created to deploy long-term capital to real economy banks with a commitment to meeting the needs of individuals and enterprises while delivering steady financial returns (www.sfrefund.com).
- Research by the GABV, with assistance from Enclude, shows that real economy banks emerged from the global financial crisis in better shape than 29 “too big to fail” banks that had strayed from funding the real economy. Find the report here.
- SFRE will invest equity and subordinated debt in small to medium size banks which in turn are investing most of their assets in individuals and enterprises in the communities in which they operate. Every dollar of equity invested into SFRE is expected to be leveraged 10 times into the real economy.
- Prospective investee financial institutions will be identified and evaluated with a proprietary scorecard that will provide a tool for reporting on quantitative and qualitative performance. A key consideration is the institution’s impact on local entrepreneurs and the communities in which they live and operate.
- The portfolio manager for SFRE’s first compartment is MicroVest, selected via global search for its strong track record investing in regulated financial institutions serving low income communities and in liquidity management.
- SFRE will enable community banks around the globe to be key players in building more inclusive and sustainable local economies – financing the enterprises and entrepreneurs who create jobs, produce goods and services, ensure clean water and promote solar energy and sustainable waste management.
SFRE is poised to support the growth of real economy financial institutions through its investments and to prove the value of sustainability-focused financial institutions in the global debate about the role of banks in society.
For more information, please contact me or Steven van Weede, Enclude’s Capital Advisory Services Director at email@example.com.