Nordic Impact Fund I

Nordic Impact Fund I makes investments that improve the quality of life for low-income people in East Africa through funding local entrepreneurs in agribusiness, healthcare, education and basic services and providing necessary support to scale their businesses.

The first fund managed by Nordic Impact Funds is registered and raised in 2017. The aim is a EUR 50-75 million fund with a targeted financial return above 12% (IRR EUR). The fund focuses on creating social impact for low income people in East Africa by capitalizing enterprises with a scalable and economically viable model for impact. Investments will prioritize social impact along with a financial return. The fund provides either debt or equity to enable businesses to scale their model for improving the quality of life for low-income people. Investees must have a proven scalable business model and proof of social impact. The fund measures social impact, using international standards and external evaluators. The fund takes an active role in the companies they invest in and add value through a systemic and practical approach to making markets work for the poor, combined with leveraging the expertise of a network of Nordic and African business people.

Financial description

The fund targets an above 12% IRR financial return. The fund is managed by Nordic Impact Funds Ltd that receives a 2 % management fee and a carried interest of 20%. 25% of the carried interest is directed into a Social Impact Facility that later on can provide technical assistance, market research, technology enabling and other value creating activites for the social enterprises.