The European Investment Bank is considering making a $20 million commitment to ShoreCap III, a planned $150 million private equity fund which will target equity and quasi-equity investments in small and medium-size enterprise banks, microfinance institutions, micro-insurance and financial technology companies. The fund will be managed by Equator Capital Partners, a Chicago-headquartered impact investor.
Along with providing its investors with competitive returns, the fund will look to back companies with scarce equity funding, improve their corporate governance processes and help them comply with environmental, social and corporate governance standards.
Equator Capital Partners’ first impact investment fund, ShoreCap International, has invested in and exited fifteen financial institutions. ShoreCap II, which has $80.3 million in committed capital counts twelve institutional investors including development finance institutions and foundations from Europe, the USA and Asia among its investor base. The Fund’s strategy is to partner with forward-looking management teams to invest in situations where there is a demonstrable market and social development opportunity.