Cardano-FMO SME Finance Fund I

The Cardano-FMO SME Finance Fund I has a sustainable investment objective. The fund provides capital to financial institutions in emerging and developing countries with the clear goal of improving access to credit for SMEs. These financial institutions, in turn, offer loans and other financial services to SMEs in these markets. The SME sector in these countries is relatively underdeveloped, and one of the main barriers to its further development is limited access to financial services. Seventy percent of SMEs in emerging markets are underserved. To improve access to capital for SMEs, Cardano Impact Investing collaborates with FMO. Cardano Impact Investing acts as the fund manager, while FMO is responsible for identifying and selecting suitable investments, conducting due diligence, monitoring the investments, and reporting on them.

The investment committee of Cardano Impact Investing is responsible for making investment decisions and communicating with and maintaining relationships with (institutional) investors. Decisions are based on both financial and social or societal criteria. Proposals must meet the investment policy of Cardano Impact Investing in both areas. Once an investment decision is made, FMO ensures the timely and regular monitoring of investments and, if a financial institution encounters difficulties, finds adequate solutions that are socially and financially viable. Cardano Impact Investing reports to fund participants on a quarterly and annual basis.