The Gutmann OeEB Impact Fund - a joint project of the Development Bank of Austria (OeEB) and Bank Gutmann - announces the end of its fundraising period. A total of EUR 72 million were mobilised from the private sector. The key objective of the fund is to sustainably improve the living conditions of people in developing and emerging countries.
Impact investing – the pursuit of both return of investment and pre-defined social and/or environmental goals – has become increasingly important in recent years. The fund initiated by OeEB and Bank Gutmann was launched in December 2019 with the first capital commitments. "We are pleased that this joint approach has enabled us to gain access to clients despite the pandemic, so that we were able to mobilise a total of around EUR 72 million from 48 private and institutional investors," says Friedrich Strasser, Member of the Board of Management of Bank Gutmann AG.
"Especially with regard of the Covid-19 pandemic, developing and emerging countries are facing enormous challenges. For the first time in decades, the number of people living in extreme poverty is rising again. In order to achieve the UN Sustainable Development Goals, which include ending poverty, around 3 trillion US dollars are missing each year. This sum has again increased massively in recent years and cannot be raised by the public sector alone - private investors are also needed. We are pleased to be able to give private investors the opportunity to invest capital profitably and at the same time meaningfully with the Gutmann OeEB Impact Fund," says Hannes Manndorff, Managing Director of the Equity department at OeEB.
Assisting in a targeted manner
The overarching goal of the Gutmann OeEB Impact Fund is to improve the living conditions of people in developing and emerging countries. In particular, the fund contributes to the creation of good and fair employment, the growth of local income and the development of markets and sectors, while at the same time acting in a responsible and environmentally friendly manner and providing benefits to local communities. These indicators and the contribution to the Sustainable Development Goals are measured annually on the basis of the "Development Effectiveness Rating" (DERa©) tool developed by the German Investment and Development Corporation (DEG) in order to be able to quickly initiate suitable measures to ensure that the goals are achieved.
Investments with an impact
Within the fund life, ten investments are to be made in target funds, which in turn invest directly in small and medium-sized companies in the private sector or financial institutions. The focus regions of the fund are Asia, Africa and Latin America. So far, investments have been made in an SME fund in Africa, a global fund in the fintech sector and another SME fund in Southeast Asia. As of the end of 2021, these three funds had invested in 24 companies, giving 3.4 million previously underserved private customers and 900,000 SMEs new access to financial services. By 2025, these three funds are expected to create more than 25,000 new local jobs. The Gutmann OEB Impact Fund is expected to invest in four additional target funds in the SME and financial inclusion sectors by the end of 2022.
This is a promotional message. The Gutmann OeEB Impact Fund is licensed in Austria for distribution to professional investors and qualified private customers only. The Fund is already fully closed for new investors. This brief information on the cooperation between OeEB and Bank Gutmann does not constitute investment advice, a recommendation to buy or sell, or an offer or an invitation to make an offer to buy or sell private equity shares.