With support from Schroders, BlueOrchard aims to expand its opportunities in emerging and frontier markets

Schroders

Image: Schroders to acquire stake in BlueOrchard. Photo: Courtesy of Schroders plc

British asset manager Schroders has signed an agreement to acquire a majority stake in Swiss microfinance and impact investor BlueOrchard Finance for an undisclosed amount.

Founded in 2001, BlueOrchard is a commercial manager of microfinance debt investments. It offers investors impact investment solutions across asset classes such as credit, private equity and sustainable infrastructure, with expertise in new blended finance mandates. Operating internationally, it presently has $3.5bn (£2.83bn) in assets under management.

Subject to customary closing conditions including regulatory approvals, the deal is expected to be closed in the second half of this year.

Benefits of the acquisition:

Support from Schroders can offer opportunities for BlueOrchard to expand its capabilities, the Switzerland-based firm said. It includes better services to its clients seeking investments with a positive impact on society and environment along with generating positive financial returns.

It can also accelerate the BlueOrchard’s growth in private debt and private equity investments across emerging markets.

BlueOrchard also aims to bring innovation and growth to increase its impact across emerging and frontier markets. The Swiss firm also stated that its long-term investment philosophy aligns with the stable ownership structure of Schroders.

Schroders Group CEO Peter Harrison 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, recognising 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.”

BlueOrchard CEO Patrick Scheurle 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.”

Upon closing of the deal, there will not be any changes to the management team, processes or strategies within BlueOrchard. Peter Fanconi will continue with his post as chairman of the Board of Directors and Patrick Scheurle as the CEO.

Schroders will appoint Peter Harrison, private assets global head Georg Wunderlin and Schroder Adveq executive chairman Stephen Mills to the board.