Swiss Investment Fund for Emerging Markets

Organizational profile: The Swiss Investment Fund for Emerging Markets (SIFEM ) is the development finance institution of the Swiss Confederation. SIFEM promotes long-term, sustainable and broad-based economic growth in developing and emerging countries by providing financial support to commercially viable small and medium-sized companies (SMEs) as well as fast-growing enterprises which in turn helps to create secure and permanent jobs and reduce poverty. SIFEM is a private limited company, the shares of which are 100% owned by the federal government. The fund management and portfolio management functions were outsourced to the specialized investment adviser Obviam in 2011.

SIFEM invests its money in local, regional or global funds. These funds in turn select local small- and medium-sized and fast-growing companies, and encourage their growth with financial support and experienced advice. SIFEM makes use of this indirect investment model, as do most other development finance institutions. SIFEM will occasionally make direct investments in financial institutions. SIFEM invests primarily in sectors that are particularly important for the economic development of partner countries. This includes sectors such as the manufacturing industry, transport, storage, communication, wholesale and retail trade, production of renewable energies, health and education. SIFEM  is an impact investor, as all investments are made with the intent to generate a measurable development impact, based on specific indicators and corresponding targets in developing and emerging countries, including job creation, skills development, tax payments, financial sector deepening and diversification, and implementation of international best practice environmental, social and governance standards.

Financing Instrument: Equity, Loans

Project scale: A total of approximately USD1059.3 million has been invested in 141 investments to date. Forestry related investments have included a USD7 million and USD10 million investment.

Recipient countries regions/country groups: Global (Emerging Markets)

Recipient categories: Businesses

Eligibility Criteria: SIFEM invests in developing and emerging countries, i.e countries whose GNI per capita is below a set threshold ($US6,975 per capita as of 2018) as defined by the International Bank for Reconstruction and Development. The partner countries of the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO) are given a priority status. At least 60% of SIFEM's investment volume in any year must be allocated to these priority countries.

Application guidelines: The Swiss Investment Fund for Emerging Markets (SIFEM) invests via local and regional private debt and equity funds in small, medium and fast-growing companies in developing and emerging countries. Obviam, the management company of SIFEM, will be pleased to look into your proposal for an investment in a private equity fund. To apply, send your enquiry to info@obviam.ch