BlueOrchard’s specialized expertise leverages more than 15 years of global experience in impact investing
As a leading global impact investor, BlueOrchard has acquired unparalleled and specialized expertise in attracting, managing and providing capital. BlueOrchard offers impact investments across a various range of asset classes and across a variety of sectors. Global sustainability and development challenges addressed by our mandates include financial inclusion, climate change, education, job creation and women’s empowerment.
BlueOrchard’s investment universe encompasses:
Core Areas of Expertise
Private debt has become one of the most preferred financial instruments for impact investing, providing a means to invest in a wide range of investees, large and small. A significant amount of assets under management in impact investing are invested in loans to microfinance institutions and lenders to small- and medium-sized enterprises, generating substantial impact through the creation of jobs and poverty reduction. Moreover, such private debt investments have a low correlation with other asset classes and attractive, stable returns, making this an excellent component in building a diversified and robust portfolio.
Investments in private debt form the origin of BlueOrchard’s activities. BlueOrchard was the first commercial manager of microfinance debt investments worldwide and has accumulated an unparalleled track record and expertise in private debt investments in frontier and emerging markets.
Bonds are popular impact investments, offering stable income with greater liquidity than private debt, across a wide choice of sectors, industries, geographies and impact areas. Common instruments in impact investing are, for example, Green Bonds, Microfinance Bonds, Social Impact Bonds, and Environmental Impact Bonds. With its local presence and longstanding relationships with major global players, BlueOrchard has excellent access to opportunities in frontier market impact bonds. BlueOrchard’s local investment teams have unique insights on local economies, policies, regulatory developments and risks. By taking advantage of this industry-wide unparalleled approach, BlueOrchard’s partners around the world are granted access to attractive investment opportunities in frontier and emerging markets.
Private equity offers a means for direct, ongoing engagement with investees, making it a highly effective instrument for impact investing. Through board involvement and shareholder engagement, equity investors can directly transfer expertise and create social and environmental impact beyond the provision of capital. Tapping into BlueOrchard’s wide and longstanding experience in impact investing, our Private Equity Team, with a combined experience of over 50 years, is well positioned to navigate the challenges of investing in emerging and frontier markets.
Significant investments in sustainable and climate-resilient infrastructure in areas such as energy, buildings, transportation, and waste management are needed to meet the global climate and sustainability goals. The growing demands of frontier and emerging markets undergoing substantial economic transformations and rapid urbanization further add to the pressure to take action. Drawing on its strong international network, BlueOrchard works together with its partners worldwide to support initiatives and projects aimed at creating sustainable solutions for infrastructure and climate challenges.
Without improvements in energy efficiency, global climate and sustainability goals are out of reach. According to the International Energy Agency, the building sector is the largest energy-consuming sector, accounting for over one-third of final energy consumption globally and an equally important source of CO2 emissions. BlueOrchard’s Real Estate investment professionals make investments into environmentally responsible and energy efficient properties, aiming at expanding the numbers of green buildings in emerging and frontier markets helping to mitigate climate change. BlueOrchard’s Real Estate team has a combined management experience of over 20 years in emerging markets, with a proven track record in areas of real estate, finance and banking.
BlueOrchard implements its expertise and experience in four main areas:
Fund management lies at the core of BlueOrchard’s services, marked by our state-of-the-art investment process, portfolio management and risk management.
Rigorous investment process
BlueOrchard’s investment process is centered on rigorous assessments of all potential investees, with well-established procedures applied across all local offices, a strong emphasis placed on-site due diligence and finely tuned proprietary assessment tools.
The vast majority of investment staff is located in regional offices, bringing a wealth of local expertise and on-the-ground knowledge.
Established portfolio management
BlueOrchard has built a recognized expertise in portfolio management of impact investments. The team has developed portfolio management tools to ensure appropriate diversifications, to monitor and plan the fund liquidity, and to monitor and enhance the risk adjusted return.
State-of-the-art risk management
Strong risk management procedures are in place throughout the investment process, from origination through monthly monitoring of all investment exposures. Risk management procedures are incorporated company-wide with a specific focus on investment risk and fund and portfolio management.
Public-Private Partnerships and Blended Finance
Mobilizing our unique and extensive network of development financial institutions (DFIs) and private investors, BlueOrchard is specialized in designing and managing successful and innovative blended finance and public-private partnership (PPP) mandates.
Collaboration between public and private sectors creates win-win solutions: Public funds are leveraged by catalyzing private investments. Private investors on the other hand benefit from:
- The market knowledge and expertise of DFIs
- Credit enhancement provided by junior tranches
- Best practices in combining financial and social returns
Tailored Advisory Services
Leveraging extensive experience in impact investment management, BlueOrchard offers premium advisory services. Our advisory services target exploring new impact investing opportunities or enhancing performance and impact, focused around market research and strategy, investment process and fund design:
Advisory services are tailored to the specific needs and goals of each client.
Specialized Technical Assistance Management
Technical Assistance (TA) and investment activities go hand-in-hand in order to optimize investment impact and create an enabling investment environment, ultimately facilitating responsible, sustainable and innovative (market) development. As such, BlueOrchard offers specialized and customized technical assistance (TA) management services. TA aims to:
- Strengthen the funds’ investees
- Establish market intelligence through applied research
- Support the respective sector infrastructure with trainings and workshops
Benefits for investors
- Ensuring the invested funds are used for the targeted impact objective
- Reducing the funds’ credit risk through tailored capacity building within the target investee
TA Facilities are always customized to the objectives of each individual fund. TA funds are raised from international public and private donors