(Ecofin Agency) - The coronavirus reduced credit offers in emerging markets. In this risk aversion context, Partners for Growth wants to stimulate the private debt market.  

US-based fund manager Partners for Growth (PFG) will soon set up an investment vehicle dedicated to innovative firms operating in emerging markets, including Africa. 

The fund, whose target size has not been disclosed, will receive its first commitment (US$30 million) from the International Finance Corporation (IFC). It will specifically target mid-stage and early-stage companies focused on the fintech, software, logistics, health, and life sciences sectors. The amount to be allocated to each company was also not specified.

"Our partnership with PFG will play a key role in improving access to finance for deserving high growth technology businesses," said Paulo de Bolle, Global Senior Director of IFC's Financial Institutions Group

The coronavirus pandemic heightened uncertainty and risk aversion in emerging markets. It, therefore, reduced the volume of credits available for SMEs in those markets. But, for PFG, the said markets host some of the most compelling opportunities since firms can “create new categories and pioneer solutions that deliver impact.”  

So, the investment vehicle is expected to stimulate the private debt market in the countries targeted. 

Chamberline MOKO