• Lendable raises over $300 million at first close of two funds

• Funds target fintech credit, transport, energy SMEs in emerging markets

• IFC commits $86 million, signalling investor backing for blended finance

London-based asset manager Lendable said on Wednesday it has reached a first close on two blended finance funds, raising more than $300 million in total.

The vehicles are the Lendable MSME Fintech Credit Fund 2 (LMFCF2) and the Lendable Transportation and Energy Fund (LTEF).

LMFCF2 is a seven-year closed-end private debt fund targeting $250 million. It provides asset-backed financing to fintechs and other digital finance providers in emerging markets.

LTEF will invest in small and medium-sized enterprises and mid-cap companies in sectors including electric mobility, renewable energy and climate-resilient agriculture across emerging economies.

Lendable said it is targeting a final close of more than $500 million for the two funds.

Emerging markets are expected to generate about two-thirds of global economic growth by 2035, according to S&P Global. Lendable said it aims to back companies that could become key providers of financial services, energy and transport in those economies.

The funds will use technology to track borrower performance in real time, including integrated data systems designed to improve credit risk assessment, portfolio monitoring and capital allocation.

Beyond financing, Lendable said it will provide fintechs with data and analytics support, as well as technical assistance, to strengthen capabilities and expand access to credit for micro, small and medium-sized enterprises (MSMEs), which remain underfunded.

A signal to investors

The International Finance Corporation (IFC) has committed $86 million to the two funds, a move Lendable said could help attract additional investors and underscores development finance institutions’ interest in models built around fintech, energy and transport infrastructure in emerging markets.

Other investors include a U.S.-based public financial institution, development finance institutions such as FinDev Canada, family offices and foundations.

Lendable’s initiative reflects a broader shift in capital toward strategies seeking to combine financial returns with real-economy financing. Daniel Goldfarb, Lendable’s co-founder and executive chairman, said the goal is to mobilise large volumes of capital for impact-focused asset classes while staying focused on performance.

Chamberline Moko