British asset manager Schroders agrees to acquire a majority stake in Swiss impact investor BlueOrchard. The deal gives the Schroders access to BlueOrchard’s about US$3.5b assets under management as of May 30, 2019. BlueOrchard is active in Latin America out of their Lima, Peru office.
(Press Release) BlueOrchard is the pioneer in microfinance and impact investing. Founded in 2001, it is the world’s first commercial manager of microfinance debt investments. Today, the firm offers investors premium impact investment solutions across asset classes, including credit, private equity and sustainable infrastructure and is an expert in innovative blended finance mandates. The Switzerland-headquartered impact investment business has approx. USD $3.5billion* in assets under management and operates internationally.
Schroders’ partnership with BlueOrchard supports the expansion of its sustainability capabilities. This will help to better serve clients who are increasingly seeking investments which have a beneficial impact on society and the environment, as well as generating positive financial returns. It also accelerates the growth of Schroders in private debt and private equity investments in emerging markets.
Partnering with Schroders enables BlueOrchard to further drive innovation and growth and increase its impact across emerging and frontier markets. Schroders’ stable ownership structure and heritage is aligned with BlueOrchard’s long-term investment philosophy. Sharing values and the desire to generate substantial impact together, Schroders is BlueOrchard’s preferred strategic partner.
There will be no changes to the management team, processes or strategies that BlueOrchard manages. Peter A. Fanconi will remain as Chairman of the Board of Directors and Patrick Scheurle as CEO of BlueOrchard. Schroders will appoint Peter Harrison (Group Chief Executive), Georg Wunderlin (Global Head of Private Assets), and Stephen Mills (Executive Chairman of Schroder Adveq) to the board. BlueOrchard’s Board of Directors, consisting of both BlueOrchard’s and Schroders’ representatives will adopt joint strategic decisions.
*as at 30 May 2019
Peter Harrison, Group Chief Executive of Schroders, said:
“Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard’s expertise in this area is exceptional. They share our values, recognizing that through our combined contributions, we can purposefully affect positive change. They are a blueprint for the future of our industry and we are delighted to partner together.”
Peter A. Fanconi, Chairman of BlueOrchard, said:
“For nearly 20 years it has been BlueOrchard’s vision and mission to reduce poverty and protect the planet, while providing attractive returns for investors. With Schroders we have found the ideal strategic partner with whom we will further increase our impact and jointly contribute to the achievement of the UN Sustainable Development Goals. We are very pleased that amongst others, Peter Harrison, Schroders’ Group Chief Executive, will join BlueOrchard’s Board of Directors and look forward to jointly develop our business and ultimately drive the growth of the impact investing industry.”
Patrick Scheurle, CEO of BlueOrchard, said:
“We are delighted with today’s announcement. Schroders’ stable ownership structure and heritage, which is closely aligned with BlueOrchard’s long-term investment philosophy makes them an excellent partner for our business. With the backing of such a strong and like-minded institutional partner, we will be able to further drive innovation and growth and increase our impact substantially, while retaining our investment and operational autonomy. We look forward to continuing to provide an excellent service and the best possible impact investment solutions to our clients.”
Financial terms of the transaction are not disclosed and the acquisition is expected to complete in the second half of 2019 subject to usual closing conditions, including regulatory approvals.