SDG Frontier Fund
Impact investing in developing economies
The SDG Frontier Fund (SDG FF) is a Belgian self-managed fund-of-funds (FoF) that invests in private equity funds active in Africa and Asia, with the objective of generating positive social and environmental impacts alongside financial returns. Established in December 2019 at BIO’s initiative, the fund has a total size of EUR 36 million, contributed by 14 Belgian institutional and private investors, including BIO.
Recent developments
In 2024, the SDG FF signed a USD 5 million investment in the Navis Asia Credit Fund, marking it as the twelfth and final investment, making the fund fully committed.
This private credit fund provides debt financing to underserved companies in Southeast Asia, with a 60% climate finance target. It's a great final addition to the SDG FF’s portfolio, helping to create a well-balanced exposure between Asia and Africa.
Meanwhile, the other 11 portfolio funds continued to deploy capital during the period, reaching 56% effective deployment into 124 SMEs—well above the initial target of indirectly supporting 100 SMEs.
Another significant achievement was that 2024 marked the first year SDG FF realized a positive net income, driven by some advantageous early exits at the level of its portfolio funds.
Investments of the SDG FF
The SDG Frontier Fund has committed EUR 3.2 M in equity in FIVE, an evergreen investment fund focusing on financial inclusion in Africa.
The SDG Frontier Fund has invested USD 1.7 M in equity in the African Rivers Fund III, an SME fund which invests in small and medium-sized enterprises in Central and Eastern Africa.
The SDG Frontier Fund has invested USD 2.3 M in equity in Ascent Rift Valley Fund II, an SME Fund targeting fast-growing SMEs in Eastern Africa. A follow-on investment of USD 1.7 M was made in June 2022, bringing the total commitment to USD 4 M.
The SDG Frontier Fund has invested EUR 4 M in Equity in the Cathay Africinvest Innovation Fund Ltd, a Pan African Venture Capital Fund.
The SDG Frontier Fund has invested USD 2.2 M in Excelsior Capital Vietnam Partners, a private equity fund focused on Vietnam.
The SDG Frontier Fund has invested USD 1.7 M in the Ezdehar Mid-Cap Fund II, a Private Equity Fund focused on Egypt.
The SDG Frontier Fund has invested EUR 2 M in equity in the Incofin India Progress Fund, a Financial Inclusion and Agribusiness Fund focused on India. A follow-on investment of EUR 1.5 M was signed in February 2023,
bringing the total commitment to EUR 3.5 M.
The SDG Frontier Fund has invested USD 5 M in equity in the Navis Asia Credit Fund, a generalist private credit fund to be invested in Southeast Asia.
The SDG Frontier Fund has invested USD 2,5 M in equity in the Omnivore Agritech & Climate Sustainability Fund III, an Indian VC fund specialized in the Agritech sector. A follow-on investment of USD 1 M was signed in October 2023, bringing the total commitment to USD 3.5 M.
The SDG Frontier Fund has invested USD 2.2 M in the South Asia Growth Fund II LP (SAGF II), a 10-year closed-end investment fund that will invest in energy efficiency and clean energy sectors.
The SDG Frontier Fund has invested USD 2.5 M in equity in the TIDE Africa II Fund, a venture capital fund focusing on technology-enabled services and innovation for Africa.
The SDG Frontier Fund has invested USD 2.5 M in equity in the Uhuru Growth Fund I, a PE fund focused on the Ecowas region
The goal of the SDG Frontier Fund is to generate an attractive financial return combined with a high development impact.