The Luxembourg Microfinance and Development Fund (LMDF) embarks on new growth phase of EUR 20 Million targeting EUR 60 Million in social impact investments in microfinance in three years. The Finance Minister, Pierre Gramegna announced support for the next growth phase by enhancing the risk mitigation mechanism for Luxembourg private investors.
On the 27th June, Investing for Development SICAV and its sub-funds, the Luxembourg Microfinance and Development Fund (LMDF) and the Forestry and Climate Change Fund (FCCF) held their annual general meeting of shareholders.
Since its inception in October 2009, LMDF has established its track record as an impact finance fund accessible for Luxembourg investors. LMDF has seen significant growth from a net asset of EUR 5 million to EUR 40 million today and reaching 230,000 micro-entrepreneurs over the years. After nearly ten years of activity – and after exceeding the initial target size of EUR 25 million – the Finance Ministry sets the scene for the next stage in LMDF’s growth by strengthening the risk mitigation available through public shares, by converting EUR 4 million public shares, for the benefit of Luxembourg private investors and not-for-profit entities.
The expanded risk capital allows a further EUR 20 million of Class C (share class dedicated to retail investors) investments in LMDF.
Private foundations, private banking, family offices and individuals have driven the growth of the Fund in the past years. Last financial year, LMDF grew by 22% in net assets through inflows from Luxembourg based investors.
We wish to thank the Ministry of Finance for the continued support and trust in the Luxembourg Microfinance and Development Fund!
"I am pleased to announce this new support to LMDF which has come as a consequence of its successful track-record in the last years. LMDF is a good example of a blended finance model which has allowed for substantial mobilization of private investment from Luxembourg investors for sustainable development."− Pierre Gramegna, Minister of Finance
"We have now run blended finance vehicles for nearly 10 years. Our main Fund, the Luxembourg Microfinance and Development Fund (LMDF) has used both public and private capital to provide opportunities to over 230,000 micro-entrepreneurs in low income countries. We are excited to move forward into a new growth phase of LMDF driven by our banking and investment partners."− Kaspar Wansleben, Executive Director of LMDF
"Financial institutions should take “Investing for Development “as an inspiration when it comes to integrate Social Development Goals into their core corporate strategy."− Rudi Belli, Senior Vice President, Secretary General, Spuerkeess