Accion Frontier Inclusion Fund
United States of America
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50)
Accion Frontier Inclusion Fund ("Frontier") is a growth-stage impact investing fund focused on catalyzing new approaches to financial inclusion. Frontier's mandate is to invest in disruptive business models and technologies that will radically enhance the efficiency, reach and scope of products and services for the financially underserved.
Frontier intends to invest globally, with a focus on certain core markets in Africa, Asia and Latin America that have attractive enabling environments, entrepreneurial ecosystems and large market opportunities.
Accion International, a global leader in microfinance with five decades of experience in emerging markets, is Frontier's sponsor and anchor investor. Frontier will leverage Accion’s on-the-ground presence and institutional relationships, operating management strength in each of its regional hubs, global recognition as a leading impact investor and technical specialists in Frontier’s target sectors. Frontier draws on the Accion relationship and the Frontier team’s sector- and market-specific domain expertise, its experience investing in similar companies as well as its strong global network to actively support the growth of its portfolio companies.
Accion's important role in impact investing was recognized for the second consecutive year in 2013 by Impact Assets 50, a database of experienced impact investment fund managers.
Frontier seeks to generate appropriate risk-adjusted financial returns, by investing in early- and growth-stage companies with disruptive business models that promote financial inclusion for financially underserved populations primarily at the BoP.
Frontier expects to make 12 to 15 equity or equity-like investments of between US$1 and US$5 million each, with additional reserves for follow-on investments, in scalable early- and growth-stage businesses. Frontier will typically make significant minority investments, where possible alongside complementary co-investors, and will seek board representation to enable active governance and portfolio management.
Frontier targets companies that can be scaled to create both competitive financial returns and innovation in financial inclusion, and seeks to create a demonstration effect so that new investors are encouraged to deploy capital that results in the expansion of financial inclusion.
of track record
the year funded
Headquarters location: United States of America
Other funds managed by this asset manager: Global Bridge FundAccion Frontier Investments GroupACCION Investments in Microfinance, SPC (Accion Investments)
Key performance indicators
Asset manager: Accion
Product track record: Fund has 9 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Style/Stage: Growth Stage
Inception year: 2014
Vintage year: n.a.
Target region: Africa, Eastern Africa, Emerging countries
Target close date: 01/12/2014
Product term: Ten years, subject to two one-year extensions
Assets under management: 100,000,000 USD (US Dollar)
Investment size: Min: 1,000,000; Max: 5,000,000; Avg: 0
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 2.5%
Carried interest: 20%
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: Accion International
Limited Partner / Investor Type: n.a.
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Through its investments, Frontier will seek to catalyze breakthrough innovation in financial inclusion that will radically enhance the efficiency, reach and scope of products and services for the globally underbanked. This social mission is integral to every aspect of Frontier’s investment activities and is aligned with Accion’s vision of building a financially inclusive world with access to economic opportunity for all.
Frontier will target the following high-growth sectors that address inefficiencies in the delivery of financial services to the underbanked while tapping into the growing demand for financial services in emerging markets:
Technology: Information management systems and platforms that enhance efficiency in financial services (e.g. big data analytics, P2P lending and payment platforms and machine-to-machine technology).
Channels: Delivery mechanisms that extend the reach of financial services (e.g. agent networks, mobile point-of-sale and online remittances).
Products: Financial products and services focused on unmet demand beyond microcredit (e.g. alternative lending, microinsurance and prepaid card services).