Incofin cvso fund manager, Incofin Investment Management (Incofin IM) raises fresh capital from new shareholders Degroof Petercam Asset Management (DPAM) and Korys (the Colruyt family’s investment company). This transaction allows Incofin to accelerate its growth and increase its impact in emerging countries. The new investors join Incofin’s two founding shareholders: on the one hand Incofin cvso, from which Incofin emerged in 2009, and on the other Incoteam, the vehicle in which Incofin’s employees hold a majority stake.

A recent landmark research estimates the current impact investment market in Belgium between EUR 6 billion to EUR 16 billion, representing 1% to 2.5% of Belgium’s total assets under management and projects the Belgian impact investing market has the potential to double within five years. The entry of two new shareholders for Incofin shows that interest in impact investing is also growing among investors in Belgium.

Chairman of Incofin cvso, Michiel Geers, is excited about the greater impact that can be created with the new capital: “Ever since Incofin cvso was founded in 1992 – now more than 30 years ago – its mission has been to support entrepreneurs in emerging economies by offering them appropriate financing.  Incofin cvso is proud that this trajectory has made it possible to now attract new like-minded shareholders in Incofin Investment Management  This will enable Incofin IM to continue its strong growth path in the coming years, with even more positive impact for entrepreneurs in emerging economies.”

Pioneering into new territories, both in terms of asset classes and geographies, has always been core to Incofin’s entrepreneurial approach. The capital increase will boost the company’s capacity to launch new initiatives, including funds integrating a smart climate and gender lens.  In addition, Incofin is at the forefront of developing best practices in impact measurement and reporting.

“The company’s’ unique strengths are attributable to the management’s drive and independence. However, in 2020, we realized we needed to boost our growth trajectory by attracting fresh capital and team up with partners, as we saw immense untapped investment opportunities. We wanted partners contributing to excellence in governance and capitalizing on our company culture. DPAM and Korys were the winning combination. With them on board we proudly remain a company rooted in Belgium but with unlimited global outreach.”  – Loïc De Cannière, Oprichter en Voorzitter van Incofin Investment Management

For DPAM, its first ever investment in an impact investing firm feels like a natural next step in line with the company’s longstanding commitment to sustainability.

“We have been thinking about broadening our offer for a long time, especially in the direction of impact investments in private debt and equity. We also perceive a growing demand from customers in this direction that we would like to meet. Today, we are a reference partner on responsible investments in emerging markets. This cooperation is fully in line with our commitment to sustainable development and strengthens the social component of it.” – Peter De Coensel, CEO DPAM

For Korys and Incofin this is not the first partnership.

“We are happy to deepen this partnership with Incofin,” says Frederik Bauwens, Investment Director at Korys. “After a first investment in agRIF[1] in 2016, Korys became a cornerstone investor in the India Progress Fund[2] in 2021. We are a long-term investor focusing on sustainability, we particularly enjoy working with partners who share our core values and aim to make a positive impact. Together with the existing shareholders and DPAM, we make sure Incofin remains an independent investor anchored in Belgium, yet with a global impact. Furthermore, we love the idea that this partnership will expand our network and help us to connect with new players active in areas close to our heart.”

All parties involved underline how this new partnership brings a tremendous opportunity to leverage more sustainable impact and financial inclusion for low-income people in emerging countries. A major new initiative is already at an advanced stage and will be officially launched within a few months.

Argo acted as transaction counsel, advising both Incofin IM as issuer and Incoteam and Incofin cvso as existing shareholders of the company, in relation to the capital increase.

[1] AgRIF (Agricultural and Rural Impulse Fund) is a multiregional debt and equity microfinance investment fund with a specific focus on agricultural and rural outreach.

[2] Incofin India Progress Fund is an impact fund for rural development in India launched in 2021.