The fund's investment-grade rating supports the deployment of institutional capital into emerging markets. Investors include FinDev Canada, AXA XL and African bank Absa.
Lendable is proud to announce the final close of Lendable MSME Fintech Credit Fund II (LMFCF II), its blended-finance vehicle backing next-generation financial services companies across emerging markets. The fund closed oversubscribed at $255mm, surpassing its original target and underscoring strong demand across Lendable’s investor base.
The final close saw continued conviction from Lendable’s existing partners, alongside significant new capital commitments, signalling growing appetite for the strategy from both returning and first-time investors.
Unlocking institutional capital for impact investing
LMFCF II’s senior tranche carries an investment-grade rating, a rare distinction in the blended-finance space. That rating was subsequently upgraded following the initial deployment of the portfolio. Lendable’s disciplined capital structuring, uncompromising investment fundamentals, and consistent track record of credit performance drove this upgrade.
Opening new investment frontiers
Among the new investors joining at final close are AXA XL, the P&C and speciality risk division of the international insurance group AXA, through first close investor FinDev Canada, and ABSA, marking Lendable’s first African bank investor in the fund. Their participation broadens the fund’s investor base both by geography and by investor type, bringing new institutional and, notably, domestic African capital into the strategy.
This brings the total number of large private commercial investors in the fund to three: ABSA, AXA XL and the US-based, publicly owned financial institution that joined at first close. This is a rare feat for a blended-finance strategy, where private commercial capital at this scale has historically been difficult to mobilise.
The fund is complemented by a TA facility
Alongside the fund’s final close, Lendable is finalising the set-up of a Technical Assistance (TA) facility of USD 1.6m, funded by some of the LMFCF II investors. This TA facility is designed to complement the fund’s capital with hands-on support, strengthen the impact and sustainability of the businesses LMFCF II finances, and further strengthen Lendable’s internal processes to keep delivering on its mission.
Chris Wehbé, CEO of Lendable, commented: “We set out to prove that high-impact asset classes could meet institutional standards without compromise. An investment-grade rated senior tranche and an oversubscribed final close are the clearest evidence yet that we’re getting there, and that investors are ready to back this strategy at scale.”
LMFCF II provides asset-backed capital to next-generation financial services companies leveraging Lendable’s technology and data to expand financial access for underserved populations, and forms part of Lendable’s broader mission to back high-impact, technology-enabled businesses driving inclusive and sustainable growth across developed and emerging markets.