VICTORY Park Capital (VPC) has launched a new fund focusing on fintech companies in emerging markets.
The investment firm, which manages alternative finance-focused investment trust VPC Specialty Lending, has partnered with the International Finance Corporation (IFC), a World Bank member providing capital in developing markets.
The fund will aim to improve access to debt capital for fintech firms lending to small businesses and consumers in emerging markets.
It will focus on financial infrastructure, products and services.
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“Our partnership with IFC, the largest global development institution focused exclusively on the private sector and a leading investor in financial technology in developing countries, opens a world of opportunities to fill the growing need for capital in emerging markets and scale our existing exposure,” Brendan Carroll, senior partner and co-founder of VPC, said.
“We are a long-standing investor to companies that provide innovative financial solutions, often overlooked by traditional investors despite generating attractive returns, and we are eager to continue identifying high-quality opportunities alongside IFC.”
Kai Schmitz, principal investment officer at IFC, said there are many funding opportunities in emerging markets.
“Over the past few years, IFC has become a leading investor in financial technology companies in emerging markets which offer new solutions that expand access to finance,” Schmitz said.
“At the same time, we have seen a lack of growth capital available to these companies, both debt and equity financing to support new lending solutions.
“Partnering with Victory Park Capital allows us to bring the expertise of one of the leading specialised investors in this area to emerging markets and will encourage other investors to follow.”