Finnfund

Finnfund is a Finnish development finance company headquartered in Helsinki, dedicated to providing long-term risk capital for private sector projects in developing countries. Operating as an impact investor, Finnfund's core mission is to foster sustainable development and economic growth by channeling funds into businesses that align with the United Nations Sustainable Development Goals (SDGs). The organization prioritizes creating positive environmental and social impact alongside financial returns, aiming to improve livelihoods and promote responsible business practices in emerging markets.

Finnfund's investment strategy focuses on sectors critical for sustainable development, including renewable energy, sustainable forestry, financial institutions, and digital infrastructure. They typically invest through equity, mezzanine financing, and long-term loans, often acting as a co-investor alongside other development finance institutions and private sector partners. Geographically, Finnfund's portfolio spans across Africa, Asia, and Latin America, with a strong emphasis on countries where its capital can make a significant difference in fostering local economies. By the end of 2023, Finnfund's total investments and commitments amounted to approximately EUR 1.35 billion, showcasing its substantial role in global development finance.

The company's commitment to impact is evident in its rigorous assessment of environmental, social, and governance (ESG) factors for all potential investments. Finnfund aims to generate tangible benefits such as job creation, increased access to essential services, and climate change mitigation. For example, Finnfund's investments were reported to have generated 180,000 jobs in 2022, highlighting its significant contribution to employment in developing regions. While the specific investment size can vary based on project needs and risk profiles, Finnfund typically provides first cheques ranging from EUR 1 million to EUR 20 million, demonstrating its flexibility to support a diverse range of projects from smaller enterprises to larger infrastructure initiatives.

Finnfund often leverages its expertise and capital by forming partnerships with local and international financial institutions, private companies, and other development organizations. This collaborative approach allows Finnfund to mobilize additional capital and expertise, amplifying the overall impact of its investments. Its long-term vision is to contribute to a more sustainable and equitable world by empowering private sector growth in regions that need it most, thereby addressing critical development challenges through commercially viable and socially responsible ventures.