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Palladium
Global investment consultancy Palladium has launched its first impact investment fund to help close the financing gap for small businesses in sub-Saharan Africa.

The Palladium Impact Fund I is expected to raise $40 million and provide capital for SMEs in emerging markets. Its focus will be on agribusiness and off-grid clean energy in Nigeria, Ghana and Kenya, with the aim of economically supporting around half a million rural households. The goal is to create at least 3,500 full-time jobs - more than half of those going to women - the group said.

The New York-based investment firm’s chief executive, Christopher Hirst ,three years of investing its own capital was enough runway, and the time was ripe to raise the first impact fund from outside capital. “Our relationships with USAID, DfID (UK), DFAT (Australia), governments and private sector clients are directly relevant as we seek to ultimately bridge the gap between aid and impact investing, with Palladium as the intermediary,” he said.

Investors will include family offices, foundations, pension funds, and institutional investors. Palladium will manage the fund, starting with $5 million of its own capital, and make debt and mezzanine investments of between $250,000 and $2 million into small companies.

Andrew Tillery, the group's head of impact, said it has chosen to invest in supporting African women as they perform most of the agricultural tasks, own a third of all firms, and are key carers for their families. “Gender equality and empowerment in the region can raise productive potential and boost the continent’s development,” he said.

Palladium has already made two direct impact investments, including a mother and daughter-owned shea-nut processing business in Ghana. The firm said it has a further 10 investments under review.