Nina Freudenberg und Andreas Nilsson

Sonanz launches global impact fund with commitments from SEB, H&M Foundation and other European investors

December 11, 2017

MUNICH, Germany — Sonanz Management GmbH (“Sonanz”), a new boutique fund manager, today announced the first close of Sonanz Impact 1 GmbH & Co. KG (the “Fund”), an impact-focused private equity fund-of-funds, at U.S.$ 10 million. Investors include Swedish pension fund SEB Stiftelsen, H&M Foundation and a group of German and Swedish private investors.

The Fund will invest in 4-6 private equity funds targeting the largely underserved low-income segment in emerging markets. Target funds will invest in early- and growth-stage companies that serve the growing demand for essential products and services in these regions. Sectors include financial services, clean energy, affordable healthcare and education as well as sustainable food & agriculture.

Sonanz has screened more than 600 fund managers globally that apply social or environmental criteria. From these, more than 100 private equity funds have been identified as potential targets. “A fund-of-funds of this type is a much-needed instrument in the growing field of responsible investing”, says Andreas Nilsson, founder and Managing Director of Sonanz. “Most of these fund managers have been around for years, but are unknown to mainstream investors.”

Investment thesis

80% of the world’s population have an income of less than $10 per day and lack access to products and services which people in wealthier countries take for granted. This large unmet demand is best served by local entrepreneurs who understand their markets and the specific needs of their customers. New technologies also play an important role in reaching the target customers in a cost-efficient way. “Innovative companies that address the low-income segment have the potential to do exceptionally well – both financially and socially”, says Nina Freudenberg, Investment Manager at Sonanz.

In addition, environmental, social and governance (ESG) issues are deeply embedded in the investment strategy. Sonanz applies strict ESG standards to protect investors, society and the environment against risks and to create opportunities for companies.

First investment

The Fund further announced its first investment, Lok III, a fund managed by Indian private equity firm Lok Capital. Lok III invests in companies active in financial services, healthcare and agriculture serving the Indian low-income segment. Founded in 2004, Lok Capital has a strong track record and played a major role in building the country’s microfinance sector.

About Sonanz

Sonanz is a fund manager registered with the German financial supervisory authority (BaFin). The goal is to offer investors new opportunities to invest in business solutions to social and environmental problems. Andreas Nilsson, founder and Managing Director of Sonanz, has worked many years in private equity at EQT Partners and UBS. He holds a PhD in social finance from Stockholm School of Economics and spent two years as a Visiting Fellow at Harvard Business School.

For more information please contact:

Andreas Nilsson, Sonanz +49 89 411 511 51, nilsson@sonanz.com