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Medical Credit Fund

Netherlands

Last updated 11 May 2020, by Impactyield.

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The Medical Credit Fund (MCF) was established in 2009 by the PharmAccess Foundation to support Small and Medium Enterprises (SMEs) in health in Africa with obtaining capital and technical assistance to strengthen and improve the quality of their operations. This is aimed to contribute to enhancing access to affordable private quality healthcare for low-income Africans, thus complementing and offloading the public sector. Private health SMEs include smaller (district) hospitals, health centers, dispensaries, maternity homes, health shops and nurse-driven clinics, but also companies supplying to the health sector, e.g. medical equipment and pharmaceuticals, and companies active in medical/nursing education.

In November 2010 MCF won the prestigious G20 SME Finance Challenge award for its innovative financing model to improve African health systems. MCF was selected for ImpactAsset50 in 2013, 2014 and 2016, received the OPIC Impact Award in 2014 and the second prize in the SME Finance Innovation Award launched by DEG, FMO and Proparco in 2014.

MCF’s loan program is executed in collaboration with local financial partners and its Technical Assistance (TA) program is implemented by local TA Partners. MCF works closely with PharmAccess and SafeCare to evaluate, improve and certify the incremental increases in quality of services of the healthcare providers.

The number of loans issued and recouped by MCF can be tracked at www.medicalcreditfund.org


Asset class

Fund style

Not listed


Financial description

The MCF is a hybrid fund: financed by blending grants, equity and debt financing from both public and private parties, which are used for technical assistance (grants), first loss (equity-grants) and debt financing (loans).
Investments are made in local currency.

12 years

of track record

2012

the year funded

n.a.

AUM

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Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.

Asset manager

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Universal access to sexual and reproductive care, family planning and education

Promote policies to support job creation and growing enterprises

Develop sustainable, resilient and inclusive infrastructures

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Stichting Medical Credit Fund

Product track record: Fund has 12 years of track record

Target IRR: n.a.

Committed Capital: n.a.

Target return category: Below risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 2012

Vintage year: 2009

Target region: , ,

Target close date: n.a.

Product term: Open

Assets under management: n.a.

Investment size: Min: 1,000; Max: 2,500,000; Avg: 20,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 1

Fund investments to date exited or repaid: 699

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: www.medicalcreditfund.org/partners/investors-and-contributors/

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Other Institutional Investors

Contact

E-mail: n.a.

Website: http://www.medicalcreditfund.org

Phone number: +31 (0)20 566 8420

If you wish to have your details removed from this database please email gdpr@impactyield.com


Arjan Poels

Managing Director

Dorien Mulder

Investment Manager

Nada Coici

Portfolio Analyst

Impact Performance

n.a.

Impact thesis

The Medical Credit Fund's primary objective is to increase the delivery of affordable quality healthcare services by reducing the investment risk. To achieve this objective, the Medical Credit Fund works with local financial partners to provide debt financing to eligible health SMEs in combination with technical support. In addition, the selected health facilities participate in a medical and business quality improvement program which will strengthen their business case and debt servicing capacity, and reduce credit and medical risk.
Overall, the MCF pursues a triple bottom line:
• Financial: the total available amount of capital for healthcare is increased, at a return for investors
• Developmental: strengthening the healthcare value chain and improve quality, scale and efficiency
• Social: more low-income people receive access to more and improved healthcare services

Impact Management

n.a.

Financial benchmark

Term Description:

Keywords