Private credit can be a powerful tool in promoting economic growth and fostering prosperity in the world, while providing investors with income potential over a fixed term. Set up in 2005, the European Fund for Southeast Europe (EFSE), seeks to make a positive impact on society by providing finance to underserved geographies. The fund helps support businesses and individuals on revenue generation, improving living conditions, and creating employment.
As the private markets landscape continues to evolve, we believe opportunities in the space are becoming increasingly attractive for investors such as pension funds. Beyond the diversification and possible outperformance benefits, investing in private assets could play an important role in improving the world we live in. This is exactly what KfW Development Bank set out to do when it established EFSE in 2005, receiving significant support from the European Union, as well as the German, Swiss, and Austrian governments.
“EFSE is a microfinance fund with a mission. It is categorised as Article 9 under Europe’s Sustainable Finance and Disclosure Regulation meaning that the fund has sustainable investment at the core of its objectives.”
Since its launch, the impact fund has had a strong track record for contributing to economic development in countries across eastern and southeast Europe, including Ukraine, Albania, Romania and Kosovo to name a few. It is one of the longest running microfinance funds of its kind, with over €1 billion of capital in its outstanding portfolio.
You can now read the full whitepaper at the link below
