Luxembourg, 8 May 2024 - The European Fund for Southeast Europe (EFSE) has received an investment of over 100 million euros from M&G Investments, a leading global asset manager. The investment was anchored by Catalyst – M&G‘s £5 billion purpose-led flexible private markets mandate managed on behalf of the £129 billion Prudential With-Profits Fund.
EFSE was initiated by KfW Development Bank in 2005 and is advised by Finance in Motion. Hauck Aufhäuser Lampe provides various services for the fund. Through investing in the region’s financial infrastructure, the Fund provides local businesses the opportunity to thrive through the provision of financial products, technical assistance and access to finance for underserved communities.
The fund is now one of the largest development financiers in the world with assets under management totalling more than 1.3 billion euros. It was one of the first impact investment vehicles to pioneer a public-private partnership model. This layered and blended finance structure leverages public contributions as a risk cushion to mobilize private investments and thus unleashing more resources for impact. As a result, public investors can achieve more social and economic development for their money, and private investors can enter markets that may otherwise have been viewed as too risky to enter alone.
“Partnering with EFSE enables us to channel impactful capital towards empowering households and micro-SMEs in the region” says Eoin O’Shaughnessy, Co-Head of Structured Credit Research at M&G Investments. “Our investment isn’t just about seeking financial returns; it’s about helping to make a tangible difference in people’s lives. By leveraging our expertise in PPP models, we’re able to amplify the flow of private capital to institutions that share our vision of fostering inclusive and sustainable economic growth. This investment isn’t just a financial decision; it’s a commitment to creating positive change on the ground.”
"This is the largest single investment by a private investor in the fund to date," says Andrea Hagmann, EFSE Board Chairperson. "We are thus able to multiply the capital provided by public institutions through private capital and significantly increase the overall impact." M&G is a major institutional investor participating in impact investing. It brings an important new partnership with the private sector to the fund and complements existing partnerships with renowned investors."
About EFSE
The European Fund for Southeast Europe (EFSE) is an impact fund that takes a comprehensive approach to fostering economic development and prosperity in Southeast Europe and the EU Eastern Neighbourhood Region. By investing in local financial infrastructure that provides dedicated financing to micro, small and medium enterprises, the Fund supports the backbone of these regions' economy. As one of the largest MSME funds worldwide, it has a long and successful track record in building strategic partnerships with local financial players, providing tailored debt financing solutions, including local currency loans and targeted agri-financing. The Fund's investment activities are complemented by the nonfinancial support of the EFSE Development Facility, which builds capacities, facilitates knowledge exchange, and nourishes an environment for entrepreneurs to grow.
EFSE is advised by impact asset manager Finance in Motion and a private bank and asset manager Hauck Aufhäuser Lampe. More at: www.efse.lu; www.finance-in-motion.com. www.hal-privatbank.com.
About M&G Investments
M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £343.5 billion of assets under management (as at 31 December 2023). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.
For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.
M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.
M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.
Media contact EFSE
Louise Daruwalla-Nielsen
Marketing & Communications
Email: press@efse.lu
Phone: +352 691 336 439
M&G Media contact details
M&G Media Relations
Rebecca Grundy
rebecca.grundy@mandg.co.uk
+44 (0)7827 820428
M&G Media Relations
George Greenstreet
george.greenstreet@mandg.com
+44 (0)7900 511020
