Key Takeaways
- • GuarantCo, part of the Private Infrastructure Development Group (PIDG), provided a $75 million partial credit guarantee that helped secure a $100 million private capital raise for a gender-lens debt fund managed by US-based impact investor ALMA.
- • Anchor investor Aegon Asset Management and other institutional investors are funding Nava Capital 1, a special purpose vehicle, with ALMA adding a $10 million subordinated tranche to absorb first losses.
- • The fund will lend to financial institutions, fintechs and SMEs in emerging markets, particularly Asia and sub-Saharan Africa, targeting women-owned businesses and lenders financing female borrowers under the 2X Challenge framework.
- • Through capital recycling, the fund expects to deploy up to $240 million, according to the article.
- • The transaction is the third fund financing to reach close across GuarantCo's broader portfolio, and the structure is intended as a template for future emerging market debt vehicles.
Summary
GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a $75 million partial credit guarantee to secure a $100 million private capital raise for a gender-lens debt fund managed by US-based impact investor ALMA, according to Dealroom. The capital comes from anchor investor Aegon Asset Management and other institutional investors and flows into Nava Capital 1, a special purpose vehicle. The transaction is the third fund financing to reach close across GuarantCo's broader portfolio.
The fund will lend to financial institutions, fintechs and small and medium-sized enterprises in emerging markets, with a particular focus on Asia and sub-Saharan Africa. Its targets include women-owned businesses and lenders financing female borrowers, aligned with the 2X Challenge. The fund will also back climate-positive firms, including electric vehicle leasing and small-scale renewable energy.
The structure has three layers. GuarantCo's $75 million guarantee covers senior investors, while ALMA contributed a $10 million subordinated tranche to absorb first losses. The investments were arranged through a platform run by Symbiotics, a repeat GuarantCo partner. Through capital recycling, the fund expects to deploy up to $240 million.
George Nijborg of Aegon Asset Management said the guarantee "solves a critical part of the puzzle as our clients benefit from capital protection, stable returns and a capital efficient solution." Dave Chalila, head of Africa investments at GuarantCo, described the transaction as "an important transaction for us," noting that ALMA's emerging markets-focused climate finance vehicle is innovative for having gender-lens investing as its primary objective.
The article characterizes the deal as part of a broader push to use blended finance to channel institutional capital toward gender-lens investing. GuarantCo and ALMA expect the structure to serve as a model for future emerging market debt vehicles, potentially reducing the need for guarantee support over time. The article notes, however, that the approach eases investors' perceived risk rather than demonstrating that the funding gap is closing.
The fund will lend to financial institutions, fintechs and small and medium-sized enterprises in emerging markets, with a particular focus on Asia and sub-Saharan Africa. Its targets include women-owned businesses and lenders financing female borrowers, aligned with the 2X Challenge. The fund will also back climate-positive firms, including electric vehicle leasing and small-scale renewable energy.
The structure has three layers. GuarantCo's $75 million guarantee covers senior investors, while ALMA contributed a $10 million subordinated tranche to absorb first losses. The investments were arranged through a platform run by Symbiotics, a repeat GuarantCo partner. Through capital recycling, the fund expects to deploy up to $240 million.
George Nijborg of Aegon Asset Management said the guarantee "solves a critical part of the puzzle as our clients benefit from capital protection, stable returns and a capital efficient solution." Dave Chalila, head of Africa investments at GuarantCo, described the transaction as "an important transaction for us," noting that ALMA's emerging markets-focused climate finance vehicle is innovative for having gender-lens investing as its primary objective.
The article characterizes the deal as part of a broader push to use blended finance to channel institutional capital toward gender-lens investing. GuarantCo and ALMA expect the structure to serve as a model for future emerging market debt vehicles, potentially reducing the need for guarantee support over time. The article notes, however, that the approach eases investors' perceived risk rather than demonstrating that the funding gap is closing.
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