MAPFRE AM, the investment management arm of insurance company MAPFRE, and Global Social Impact Investments SGIIC (GSI) announced today that they are launching the Global Social Impact Fund (GSIF), to provide financing to companies with high social impact on both frontier and emerging markets.
GSIF will be a open private debt fund, initially focusing on consolidated business models in sub-Saharan Africa and potentially expanding to Latin America. MAPFRE Compromiso Sanitario was recently launched, in order to finance the Community of Madrid in the fight against COVID-19.
The companies announced a 50 million euro initial funding goal. GSIF will be managed by GSI, with Santa Comba and MAPFRE as its main investors. MAPFRE AM will take on the role of investment advisor.
The fund will have an annual profitability target of between 5 and 8 percent and annual liquidity from 2024. It will focus on three main sectors – agriculture, energy and financial inclusion – with most of the investment taking place directly in short-term loans and debt structures, and a margin of up to 25 percent of capital is left for investment through funds.
MAPFRE noted that the new fund adds another element to its portfolio of responsible investment instruments, which cover all three elements of ESG through its 3 funds, including MAPFRE Good Governance, MAPFRE Capital Responsable and MAPFRE Inclusión Responsible. The company also recently launched MAPFRE Compromiso Sanitario, in order to finance the Community of Madrid in the fight against COVID-19.
José Luis Jiménez, Chief Investment Officer at MAPFRE, said:
“We are very excited about this project and we couldn’t have wished for a better partner for this. We believe that impact investment has a long way to go and, after the pandemic, socially responsible investment is going to emerge stronger, particularly investment made with social criteria.”
María Ángeles León, founder and Chair of GSI, added:
“Few Spanish companies have incorporated social awareness from the outset but MAPFRE is one of them. Ignacio Larramendi himself said that the company is not only obliged to efficiently provide its own service, but is subject to institutional obligations resulting from its influence on social life and its contribution to the national heritage.
“GSI is grateful to be part of this project and to contribute our knowledge in order to expand and deepen our impact among vulnerable groups, who just need to be given an opportunity.”