Finance in Motion, KfW and the US non-governmental organization Conservation International (CI) together founded the eco.business fund. The fund enables businesses in Latin America to make investments that contribute towards preserving biodiversity and the sustainable use of natural resources - for example, in agriculture, forestry and fishing, as well as in eco-tourism.
The Federal Ministry for Economic Cooperation and Development (BMZ) provides seed capital of EUR 17 million that KfW incorporates in the fund. CI together with Finance in Motion will also invest in the fund at the start of 2015. The eco.business fund is launched as a public-private partnership (PPP) and allows the various investors to invest in capital tranches with a diversified risk-return profile. With this structure, public as well as private funds can be mobilized for protecting biodiversity.
Besides the fund, a development facility is also created, which will provide specialist support to the financial intermediaries and their customers. This should secure the sustainable implementation of the fund's investments. The Federal Ministry for Economic Cooperation and Development plans up to EUR 3 million for this purpose. Both the fund as well as the development facility are open to further investors to participate in the development policy direction of "eco business".
Innpact collaborated in the implementation phase of Eco-Business Fund SA Sicav-SIF under close collaboration with the fund Manager, Finance in Motion, and the initiator of the fund KfW. Currently Innpact acts under a management support mandate for Eco-Business Fund.
Source: eco.business Fund