Investing in governance and capacity building to optimize impact and create an enabling investment environment
BlueOrchard is working to make a twofold impact in the areas of investee governance and investee capacity building through (a) the use of fund-specific Technical Assistance Facilities (TAFs) and (b) through its private equity investment practice.
Technical assistance support
A TAF is a dedicated pool of funds, generally donated in the form of a grant, which are then applied as Technical Assistance (TA) to help investees build capacity and develop their operations in pursuit of broader impact. Investees are able to tap into a wide range of tailored capacity building measures which are designed to meet the needs and preferences of the investees and thereby leverage the investments provided by the respective funds. Tailored TA services are designed to complement funding with the knowledge and skills required for offering new or adapted products. In addition, TA services can precede the investment by providing market intelligence through country studies or the creation of relevant datasets and reporting tools. A wide range of services exists to support institutional strengthening, such as the quality of the credit process, risk management and internal audit, strategic and business planning, operational efficiency, social performance management, marketing and product rollout, and training of the investees’ employees on several topics.
Private equity value creation
As part of its duties as a shareholder in partner companies in connection with its private equity activities, BlueOrchard contributes to capacity building and governance enhancement in these companies. This is an integral part of BlueOrchard’s private equity practice. BlueOrchard uses a comprehensive set of actionable measures resulting in a powerful toolkit for value creation. By working closely alongside its investees, BlueOrchard seeks to pursue the impact objectives of its mandate by cooperating with its partner companies, to define and foster its partners’ environmental and social mission and support their pursuit thereof, and to assist the measurement and reporting of progress towards these objectives. BlueOrchard helps its investees to grow their business and enhance their social and environmental outreach right from the start of the investment.
Read our latest Impact Report here.