SDG Frontier Fund

Overview

SDG Frontier Fund is a Belgian self-managed fund-of-funds established in December 2019, focusing on investing in private equity funds operating in Africa and Asia. The fund aims to generate positive social and environmental impacts alongside financial returns by supporting small and medium-sized enterprises (SMEs) in frontier markets. It has a total size of EUR 36 million, contributed by 14 Belgian institutional and private investors, including BIO. The fund's investment strategy involves co-investing with BIO in private equity funds that target sectors such as agriculture, technology, healthcare, and financial services. It seeks to invest in 10 to 12 funds, each of which will invest in a dozen local SMEs, thereby supporting over a hundred SMEs across various industries. The SDG Frontier Fund emphasizes compliance with international environmental, social, and governance standards by its portfolio funds and their local investees. Since its establishment, the SDG Frontier Fund has made several investments, including commitments to the African Rivers Fund III, the Ascent Rift Valley Fund II, the Excelsior Capital Vietnam Private Equity Fund, and the South Asia Growth Fund II. These investments aim to provide growth capital to SMEs in regions with limited access to financing, thereby promoting sustainable economic growth and job creation in developing countries. In 2024, the SDG Frontier Fund signed a USD 5 million investment in the Navis Asia Credit Fund, marking it as the twelfth and final investment, making the fund fully committed. This private credit fund provides debt financing to underserved companies in Southeast Asia, with a 60% climate finance target. This addition helps create a well-balanced exposure between Asia and Africa in the SDG Frontier Fund's portfolio. The SDG Frontier Fund operates as an impact fund, seeking to generate significant and measurable beneficial development impact combined with financial return. It contributes to the implementation of the Sustainable Development Goals (SDGs) by supporting SMEs that promote job creation and sustainable economic growth in frontier markets. The fund also offers a unique counter-cyclical opportunity to diversify an investor's portfolio, especially during times when emerging markets are affected by declines in foreign direct investments.

Investment Focus

• Investments must be in private equity funds operating in Africa and Asia
• Focus on sectors such as agriculture, technology, healthcare, and financial services
• Compliance with international environmental, social, and governance standards

Portfolio Companies