Schroders and BlueOrchard Finance have entered an agreement for Schroders to take a majority stake in the microfinance and impact investing pioneer. Founded in 2001, it was an early commercial manager of microfinance debt investments.
It now offers investors impact investment tools across asset classes, including credit, private equity and sustainable infrastructure and supports blended finance mandates. The Switzerland-headquartered impact investment business has approximately US$3.5bn in assets under management and operates internationally.
Schroders’ partnership with BlueOrchard is intended to support the expansion of its sustainability capabilities to help to better serve clients who are increasingly seeking investments which have a beneficial impact on society and the environment, as well as generating positive financial returns.
Financial terms of the transaction are not disclosed and the acquisition is expected to complete in the second half of 2019 subject to usual closing conditions, including regulatory approvals.