IIV Sustainable SME Debt Fund

The Missing Middle

Microfinance is often the key to success for micro-entrepreneurs in developing and emerging countries. But what happens when these businesses grow into small and medium-sized enterprises? Then there is often a lack of follow-up financing, as the financial requirements are too large for microfinance institutions and too small for traditional commercial banks.

The IIV Sustainable SME Debt Fund EM – Finance for Future provides unsecuritized loan receivables to selected financial institutions in developing and emerging countries that focus on financing small and medium-sized enterprises (SMEs for short). Through the fund, you can make a comprehensive contribution to the Sustainable Development Goals (SDGs) of the United Nations – primarily SDGs 8, 9 and 10.

THE ECONOMIC BACKBONE

Small and medium-sized Enterprises

600 million new jobs need to be created in the developing and emerging countries by 2030 in order to feed the the growing population. SMEs play an important role as the economic backbone of society. They create jobs and help people achieve greater financial security. However, according to the World Bank, they lack financing capital of around 4.5 trillion US dollars. In developing and emerging countries, 44 percent of all SMEs – no less than nine million companies – have insufficient access to the capital market.

This is where our idea comes in: The fund helps to close this financing gap in these countries. This is to be achieved through the refinancing of financial institutions that grant loans to SMEs.

Lending Criteria

The selected financial institutions are thoroughly analyzed by us as the fund’s outsourced financial portfolio manager with respect to ESG factors and financial ratios.

Loan amount max. 10 percent of assets under management or max. 50 percent of equity of the financial institution/bank
Market-based interest rates for local financial institutions and SMEs.

In selecting SMEs, the financial institutions are required to consider qualitative criteria of SDGs 8, 9 and 10 as well as quantitative criteria.

Loan size to the sub-borrower/SME (between USD 50.000 and USD 2.000.000).
Size of the SME supported (10 to 250 employees).

IIV Sustainable SME Debt Fund EM – Finance for Future

Facts

The fund is classified as a sustainable financial product under Article 9 of the EU Sustainable Finance Disclosure Regulation.
Fund Domicile	Germany
Fund Type Legal (KAGB)	Special fund/open special AIF with fixed investment conditions
Base Currency	USD
Currency Share Class	EUR
Investment Instruments	Unsecuritized loan receivables
WKN/ISIN	A3C548 / DE000A3C54891
Minimum Investment	EUR 200,000
Distribution Type	Distributing
Launch Date	July 1, 2022
Issue of Shares	Monthly at the end of the month
Redemption of Shares	Period of 12 months before the end of the fiscal year. In the event of unit redemption before the end of 36 months from the date of a unit purchase, a redemption fee of 2.5 % of the unit value will be charged and credited to the special AIF.
Administration Fee	0.5 % p.a. ¹
Capital Management Company	HANSAINVEST Hanseatische Investment-GmbH
Fund Manager	Invest in Visions GmbH
Custodian	Donner & Reuschel AG

Fund Domicile

Germany

Fund Type Legal (KAGB)

Special fund/open special AIF with fixed investment conditions

Base Currency

USD

Currency Share Class

EUR

Investment Instruments

Unsecuritized loan receivables

WKN/ISIN

A3C548 / DE000A3C54891

Minimum Investment

EUR 200,000

Distribution Type

Distributing

Launch Date

July 1, 2022

Issue of Shares

Monthly at the end of the month

Redemption of Shares

Period of 12 months before the end of the fiscal year. In the event of unit redemption before the end of 36 months from the date of a unit purchase, a redemption fee of 2.5 % of the unit value will be charged and credited to the special AIF.

Administration Fee

0.5 % p.a. ¹

Capital Management Company

HANSAINVEST Hanseatische Investment-GmbH

Fund Manager

Invest in Visions GmbH

Custodian

Donner & Reuschel AG

1 This seed share class is to be closed at a volume of EUR 100 million or after three years at the latest. Further inflows of funds will then take place in a newly launched unit class.