A new global social impact fund managed by FIA Asset Management, which will invest in companies delivering positive social impact in Latin America and East Africa, is set to launch in April 2019. The fund is backed by Francisco García Paramés with a minimum LP commitment of €20,000.
(Citywire Selector) Francisco García Paramés is promoting a Luxembourg-domicilled AIFMD-compliant global social impact fund, which will invest in companies delivering positive social impact alongside positive financial returns.
Paramés will not manage the fund itself but he has created it alongside his family and is personally investing in it as part of his commitment to give one third of his income to philanthropic causes.
The fund will be managed by FIA Asset Manegement and will deploy most its capital in East Africa and Latin America. So far, its investment pipeline includes four direct investments and three funds. Arturo García Alonso will be an advisor on the fund on behalf of Global Social Impact, Paramés’ philanthropic vehicle.
Alonso was previously an independent financial consultant and author. He also served as a strategist at Spanish government-owned bank Sareb. From 2004 to 2007 he was head of finance at Grupo Gestesa.
The fund is aligned with the Global Sustainable Development Goals and seeks to contribute to these through its investments while providing an income for its investors.
For example, it has loaned $500,000 to Tugende, a Ugandan company that provides financing service to motorcycle taxi drivers so that they can own – rather than rent – their motorcycle. This service allows the drivers to roughly double their income and own their bike debt-free after a 20-month financing period.
The fund will be available to investors on 30 April 2018. The minimum investment will be €20,000 and the management fee will be around 1% with a maximum of 2.5%.