SDG Frontier Fund
The SDG Frontier Fund is a self-managed fund-of-funds that seeks to co-invest with BIO in private equity funds in Asia and Africa.
The SDG Frontier Fund, set up at the initiative of BIO in March 2020, reached a total fund size of EUR 36 million, thanks to the participation of fourteen Belgian institutional and private investors, including BIO.
The fund aims to support sustainable economic growth in African and Asian frontier markets and offers an attractive financial return.
Key facts
Fund concept
- SDG Frontier Fund aims to invest in 10 to 12 private equity funds and will only invest in funds in which BIO has invested.
- Middle and back-office services provided by BIO.
Investment Strategy
Impact and assessment of sustainable development goals will be equally important as financial targets.
Risk Management
- Risks are mitigated by the Fund of Funds structure offering a wide diversification around 100 SMEs spread over different sectors and countries.
- Co-investments with BIO.
Investors
In its first closing the SDG Frontier Fund has partnered with nine institutional and private investors, including AG Insurance, Belfius Insurance, King Baudouin Foundation, Volksvermogen, vdk bank, several family offices, and BIO.
For its final closing in February 2022, the fund has welcomed four additional investors, including Ghent University and Ethias.
Press
- SDG Frontier Fund final closing, Press Release, 29 April 2022
- Groener Geld, MT Magazine, August 2021
- Repousser les frontières des investissements durables, L'Eventail, 10 December 2020
- 25.3 million euros investments for Africa and Asia, Federal Public Service Foreign Affairs, 14 July 2020
- Belgian private investors participate in The SDG Frontier Fund first closing of US$28m, Africa INC. Magazine, 7 July 2020
- Belgian impact fund hits first close bringing together nine private investors, Africa Global Funds, 7 July 2020
- PME: Le SDG Frontier Fund cherche à investir, Libre Entreprise, 2 July 2020
- SDG Frontier Fund haalt 25 miljoen op voor investeringen in ontwikkelingslanden, Kanaal Z - Knack, 2 July 2020
- Le Fonds Frontière ODD lève 25 millions pour les pays en développement, Canal Z - Le Vif, 2 July 2020
- You'll never make the world sustainable with only public money, Trends, 2 July 2020
- SDG Frontier Fund first closing, Press Release, 2 July 2020
Sustainable Development Goals
The SDGs are a call for action by all countries – poor, rich and middle-income – to promote prosperity while protecting the planet. They recognize that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.
Current investments
African Rivers Fund III
The SDG Frontier Fund has invested USD 1.7 M in equity in the African Rivers Fund III, an SME fund which invests in small and medium-sized enterprises in Central and Eastern Africa.
AfricInvest Financial Inclusion Vehicle
The SDG Frontier Fund has committed EUR 3.2 M in equity in FIVE, an evergreen investment fund focusing on financial inclusion in Africa.
Ascent Rift Valley Fund II
The SDG Frontier Fund has invested USD 2.3 M in equity in Ascent Rift Valley Fund II, an SME Fund targeting fast-growing SMEs in Eastern Africa. A follow-on investment of USD 1.7 M was made in June 2022, bringing the total commitment to USD 4 M.
Cathay Africinvest Innovation Fund
The SDG Frontier Fund has invested EUR 4 M in Equity in the Cathay Africinvest Innovation Fund Ltd, a Pan African Venture Capital Fund.
Excelsior Capital Vietnam Partners
The SDG Frontier Fund has invested USD 2.2 M in Excelsior Capital Vietnam Partners, a private equity fund focused on Vietnam.
Ezdehar Mid-Cap Fund II
The SDG Frontier Fund has invested USD 1.7 M in the Ezdehar Mid-Cap Fund II, a Private Equity Fund focused on Egypt.
Incofin India Progress Fund
The SDG Frontier Fund has invested EUR 2 M in equity in the Incofin India Progress Fund, a Financial Inclusion and Agribusiness Fund focused on India. A follow-on investment of EUR 1.5 M was signed in February 2023,
bringing the total commitment to EUR 3.5 M.
Navis Asia Credit Fund LP
The SDG Frontier Fund has invested USD 5 M in equity in the Navis Asia Credit Fund, a generalist private credit fund to be invested in Southeast Asia.
Omnivore Agritech & Climate Sustainability Fund III
The SDG Frontier Fund has invested USD 2,5 M in equity in the Omnivore Agritech & Climate Sustainability Fund III, an Indian VC fund specialized in the Agritech sector. A follow-on investment of USD 1 M was signed in October 2023, bringing the total commitment to USD 3.5 M.
South Asia Growth Fund II
The SDG Frontier Fund has invested USD 2.2 M in the South Asia Growth Fund II LP (SAGF II), a 10-year closed-end investment fund that will invest in energy efficiency and clean energy sectors.
TIDE Africa II Fund
The SDG Frontier Fund has invested USD 2.5 M in equity in the TIDE Africa II Fund, a venture capital fund focusing on technology-enabled services and innovation for Africa.
Uhuru Growth Fund I-A SCP
The SDG Frontier Fund has invested USD 2.5 M in equity in the Uhuru Growth Fund I, a PE fund focused on the Ecowas region
Sustainability Related Product Disclosure
This statement is published by the SDG Frontier Fund (the “Fund”), a self-managed fund co-investing with the Belgian Investment Company for Developing Countries NV (“BIO”), the Belgian Development Finance Institution, in private equity funds active in Africa and Asia, in accordance with Article 10 of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (“SFDR”).