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Fonds

AfricaGrow Fund

The AfricaGrow Fund, launched in 2019, provides EUR 200 million in financing for small and medium-sized enterprises (SMEs) and start-ups in Africa. Investments are made through private equity and venture capital funds. The regional focus is on partner countries of the Compact with Africa (CwA) initiative.

Compact with Africa was launched in 2017 under Germany’s G20 Presidency. Participating countries include Egypt, Ethiopia, Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo, and Tunisia.

The fund-of-funds is complemented by a Technical Assistance Facility (TAF) with a volume of EUR 15 million. The objective of the fund was to invest in 14 to 18 funds, with up to 10% allocated to co-investments.

The AfricaGrow Fund is now fully invested, with commitments made to 16 funds and successful partnerships established with 15 general partners.

The AfricaGrow Fund is the result of a public-private partnership between KfW Development Bank, acting on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), Allianz, and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. The fund is managed by Allianz Global Investors GmbH.

DEG Impact’s Role

DEG Impact serves as the exclusive advisor to the AfricaGrow Fund and its associated Technical Assistance Facility (TAF).

The TAF was established as a complementary instrument to the AfricaGrow Fund with the objective of further strengthening both the performance of the portfolio investments through business support services and the African private equity and venture capital ecosystem through ecosystem-building activities.

Global Growth Guarantee Fund

Our new fund advisory mandate is the Global Growth Guarantee Fund (3xG Fund). Further information is available here.

Co-Investments

EB-EREFEM & EB-SME

The EB Renewable Energy Fund Emerging Markets (EB-EREFEM) and the EB SME Finance Fund Emerging Markets (EB-SME) are two co-financing vehicles established in cooperation with EB – Sustainable Investment Management GmbH (EB-SIM), the asset management subsidiary of Evangelische Bank. EB-SIM is responsible for investment advisory, asset management of the underlying projects, as well as product management and fundraising, while DEG is responsible for project sourcing and monitoring. DEG Impact coordinates the collaboration between the partners and serves as the central point of contact and interface between EB-SIM and DEG.

Both vehicles participate alongside DEG in financing transactions through senior loans (secured and unsecured) as well as subordinated loans. Typical investment volumes range from EUR 5 million to EUR 10 million. The EB-EREFEM focuses on renewable energy projects, while the EB-SME supports financing for banks and financial institutions with a strong emphasis on lending to small and medium-sized enterprises (SMEs).

The objective of both funds is to make a sustainable contribution to economic development in emerging and developing markets by advancing the energy transition or respectively improving access to financing for businesses and local communities.

Development Finance

DEG Impact provides comprehensive strategic and operational advisory services for the funding programs ImpactConnect and the Global Innovative Investment Fund (GIIF), which were developed jointly by the Federal Ministry for Economic Cooperation and Development (BMZ) and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG).

We support the entire investment process, from concept development and structuring through implementation to supporting ongoing management. Particular focus is placed on advising on currency and liquidity management, financial planning, and the structuring of investment vehicles.

Our Services for the GIIF

Established in 2019, the Global Innovative Investment Fund (GIIF) facilitates the co-financing of private sector projects with elevated risk profiles that generate significant development impact. To this end, DEG’s own funds are combined with GIIF resources, which are provided by the BMZ through a budget-efficient revolving fund structure in Germany.

Within the framework of the GIIF, we primarily support co-financing transactions with a high development impact. Our services include:

  • Support in the acquisition, due diligence, and execution of transactions
  • Administrative management of co-financings throughout their entire lifecycle
  • Responsibility for liquidity planning and cash management

Advisory Services

Within its mandates, DEG Impact acts as advisor, manager, and architect of investment strategies. We drive the development and implementation of new investment approaches and solutions. Depending on the mandate, our services may include the following:

Market Access, Research and Portfolio Construction for Emerging Markets Investments From market mapping and manager selection to transaction sourcing and portfolio construction, we provide comprehensive solutions for investments in emerging markets.

Our focus is on private equity, private debt, and infrastructure, implemented through fund investments, direct investments, and co-investments. In this way, we enable institutional investors to access attractive growth and return opportunities in selected target markets

Due Diligence (Financial, Commercial und Environmental & Social) Our advisory services include due diligence support for investments in emerging markets as well as ongoing support for managed accounts.

Managed accounts can be tailored to specific regions or sectors and are typically structured for mandates with a minimum volume of EUR 50 million. These mandates may be composed of fund investments, direct investments, or development finance transactions.

Local Currency Solutions A specific element of our activities within our development finance programs is the development and implementation of local currency financing solutions.

These solutions help reduce foreign exchange risks for end borrowers while supporting the development of local financial markets. From a development perspective, they can generate substantial impact.

Potential fields:

  • Advisory, structuring, and implementation of local currency hedging solutions, including for currencies such as the Uzbekistani So’m (UZS) and the Brazilian Real (BRL)
  • Advisory services relating to hedging transactions, including non-deliverable cross-currency swaps

Ongoing portfolio and risk management of existing hedging arrangements

Medium- to Long-Term Financial Planning We develop robust financial models and support their continuous refinement across our fund, development finance, and managed account mandates.

Our services include:

  • Preparation and maintenance of integrated financial and liquidity planning models
  • Cash management and oversight of capital deployment and inflows
  • Support for strategic financial decision-making
Structuring and Operational Support To ensure efficient and scalable investment processes, we provide the following services across our fund, development finance, and managed account mandates:

  • Structuring of investment vehicles, as well as support for their administration
  • Monitoring and management of project pipelines and related costs
  • Preparation and provision of reporting for investors and funding institutions
  • Selection and coordination of external service providers
  • Continuous enhancement of processes and governance structures
Impact Measurement and Engagement Using the DERa (Development Effectiveness Rating) tool, we assess the development contributions of financed companies and projects based on their alignment with the Sustainable Development Goals (SDGs) and five overarching impact categories.

In addition, we maintain an ongoing active engagement approach with target funds and portfolio companies through formats such as Environmental & Social (E&S) Sub-Committees, USAP Progress Calls, and other ad hoc engagement and dialogue initiatives

ESG, impact and long-term success in harmony.

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