Project detail - DOLMA IMPACT FUND 1

DOLMA IMPACT FUND 1

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Who is our client

Dolma Impact Fund is the first international private equity fund for Nepal, providing growth capital to small- and medium-sized enterprises (SMEs) in Nepal's underserved energy, finance, healthcare and agriculture sectors. The fund was established to generate private sector-led growth and jobs while creating positive social and environmental impact.

Funding objective

The fund achieved a first close in fundraising of US$21 million in 2014. FMO invested US$8 million in Dolma through the government fund MASSIF, which targets first-time fund managers in post-conflict markets such as Nepal, where both the risks and the potential impact are high. Being a first time fund manager, Dolma also received capacity development funding to support the fund's managers in their professional development. The fund managers will receive specialized training on private equity in emerging markets.

Why we fund this project

As anchor investor in the first international private equity fund for Nepal, FMO is contributing to the country's economic recovery by providing high-risk development financing. Strengthening SMEs in emerging markets contributes directly to economic growth and is a cornerstone of FMO's strategy. As well as boosting access to finance for entrepreneurs and creating jobs, the fund's success has the potential to encourage additional investors into Nepal by showing that high risk investing can go hand in hand with viable returns. Innovative deals often creates challenges – in this case because Nepal lacks an established regulatory framework for processing international private equity funds. FMO and Dolma have asked the local government to enact a smoother investment approval process, which could ultimately boost efficiency, ease bureaucracy and pave the way for future impact investors in Nepal.

More investments

Date Total FMO financing
6/29/2020 EUR 0.10 MLN
Region
Asia
Country
Nepal
Sector
Infrastructure, Manufacturing and Services
Signing date
9/15/2014
Total FMO financing
USD 11.10 MLN
Fund
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A