Global Growth Guarantee Fund
The Global Growth Guarantee Fund (3xG Fund) is a private equity fund-of-funds that provides professional investors with access to emerging markets. The fund pursues both a broadly diversified and sustainable investment strategy and is supported by the European Union's EFSD+ Garantie.
By investing in the 3xG Fund, investors such as pension funds, family offices, and insurance companies are given the opportunity to invest in these markets alongside DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), which has decades of investment experience across Asia, Africa, and Latin America. At the same time, the combination of the EU guarantee and broad diversification may help reduce potential loss risks.
Together with DEG and other institutional investors, the 3xG Fund invests in target funds across Asia, Africa, and Latin America. Based on growth prospects, impact potential, and the availability of investment opportunities, the fund has a particular focus on Sub-Saharan Africa, Brazil, India, Indonesia, Malaysia, Mexico, the Philippines, and Vietnam.
The fund offers investors an attractive opportunity to participate in the growth of locally established companies in emerging markets. The 3xG Fund follows a generally sector-agnostic investment approach. However, when selecting portfolio companies, the target funds focus in particular on the healthcare, consumer goods, services, financial services, education, and technology sectors.
The fund-of-funds was established by DEG and HANSAINVEST LUX S.A., with the support of the European Union. The European Union provides a partial capital guarantee covering potential losses of the fund-of-funds.
The fund is managed by HANSAINVEST LUX S.A., while legal counsel is provided by Orbit Fund Boutique. DEG Impact serves as the exclusive advisor to the 3xG Fund.
The impact of the 3xG Fund
The 3xG Fund's investment process is aligned with the Sustainable Development Goals (SDGs). The objective is to support environmental and social transformation within companies, enabling positive contributions to climate protection, environmental sustainability, and social development, while ensuring that local economies and communities benefit from the investments. For this reason, the fund-of-funds seeks to invest exclusively in funds that share the core principles of the DEG Group:
- Environmental protection and compliance with fundamental social standards are indispensable pillars of sustainable development.
- Environmental stewardship and social responsibility are strategically important for the long-term resilience and performance of companies.
- Compliance with international environmental, social, health, safety, and technology standards plays a key role in integrating partner countries into the global economy.
Measuring Impact
The impact generated by the 3xG Fund must be measurable. Impact measurement is conducted using DERa (Development Effectiveness Rating), the impact measurement framework developed by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG).
The assessment focuses in particular on five environmental and social impact dimensions:
- Decent jobs
- Local income
- Market and sector development
- Environmental stewardship
- Community effects
In addition, the investment strategy seeks to promote progress in the areas of young businesses, women’s empowerment, digital initiatives, and SMEs.
SFDR Disclosures
The 3xG Fund qualifies as a financial product under the Sustainable Finance Disclosure Regulation (SFDR; Regulation (EU) 2019/2088) and complies with the disclosure requirements applicable to Article 8 SFDR financial products, as well as the transparency requirements under Articles 10 and 11 SFDR.
As a financial market participant within the meaning of the SFDR, HANSAINVEST LUX S.A. is therefore responsible for the relevant SFDR disclosure obligations.
Contact
Interested in learning more about 3xG Fund? Please contact us: moritz.baldsiefer@degimpact.de
