Incofin raises fresh capital from new shareholders Degroof Petercam Asset Management (DPAM) and Korys. The transaction allows Incofin to accelerate its growth and to expand its impact in emerging countries. The new investors join the two founding shareholders of Incofin: Incoteam, the vehicle holding the staff members’ majority stake and Incofin CVSO, a social investment company with more than 30 years of existence, out of which Incofin Investment Management spun off in 2009.
According to a survey (GIIN, 2022) the size of the global impact investment universe amounts to EUR 1 trillion. These investment play a vital role in achieving the Sustainable Development Goals (SDGs). However, a funding gap to reach the SDGs by 2030 still exists. According to OECD, reallocating 1.1% of the total assets held by banks, institutional investors or asset managers – almost EUR 4 trillion – would be sufficient to fill the gap in SDG financing. This is why impact investments are key for the future of our planet and why impact fund managers such as Incofin IM play a vital role.
Pioneering into new territories, both in terms of asset classes and geographies, has always been core to Incofin’s entrepreneurial approach. The capital increase will boost the company’s capacity to launch new initiatives, including funds integrating a smart climate and gender lens. In addition, Incofin is at the forefront of developing best practices in impact measurement and reporting.
“The company’s’ unique strengths are attributable to the management’s drive and independence. However, in 2020, we realized we needed to boost our growth trajectory by attracting fresh capital and team up with partners, as we saw immense untapped investment opportunities. We wanted partners contributing to excellence in governance and capitalizing on our company culture. DPAM and Korys were the winning combination. With them on board we proudly remain a company rooted in Belgium but with unlimited global outreach.” – Loïc De Cannière, Founder and Chair of Incofin Investment Management
For DPAM, its first ever investment in an impact investing firm feels like a natural next step in line with the company’s longstanding commitment to sustainability.
“We have been thinking about broadening our offer for a long time, especially in the direction of impact investments in private debt and equity. We also perceive a growing demand from customers in this direction that we would like to meet. Today, we are a reference partner on responsible investments in emerging markets. This cooperation is fully in line with our commitment to sustainable development and strengthens the social component of it.” – Peter De Coensel, DPAM CEO
For Korys and Incofin this is not the first partnership.
“And we are happy to deepen this partnership with Incofin,” says Frederik Bauwens, Investment Director at Korys. “After a first investment in agRIF in 2016, Korys became a cornerstone investor in the India Progress Fund in 2021. We are a long-term investor focusing on sustainability, we particularly enjoy working with partners who share our core values and aim to make a positive impact. Together with the existing shareholders and DPAM, we make sure Incofin remains an independent investor anchored in Belgium, yet with a global impact. Furthermore, we love the idea that this partnership will expand our network and help us to connect with new players active in areas close to our heart.”
Incofin CVSO, a long-time shareholder since it split off its management activities into Incofin Investment Management, welcomes the two new shareholders.
Ever since Incofin CVSO was founded in 1992 – now more than 30 years ago – its mission has been to support entrepreneurs in emerging economies by offering them appropriate financing. Incofin CVSO is proud that this trajectory has made it possible to now attract new like-minded shareholders in Incofin IM This will enable Incofin to continue its strong growth path in the coming years, with even more positive impact for entrepreneurs in emerging economies.” Michiel Geers, Chair of Incofin CVSO
All parties involved underline how this new partnership brings a tremendous opportunity to leverage more sustainable impact and financial inclusion for low-income people in emerging countries. A major new initiative is already at an advanced stage and will be officially launched within a few months.
Argo acted as transaction counsel, advising both Incofin IM as issuer and Incoteam and Incofin CVSO as existing shareholders of the company, in relation to the capital increase.
