The secondaries market will draw capital into impact

Impact investing, especially in emerging markets, is a new frontier for most investors; secondaries transactions will ease them in.

By Snehal Shah

Secondaries transactions are typically used by LPs as a way to exit an otherwise illiquid investment. But for British International Investment , the UK’s development finance institution, it is a way of crowding new investors into impact.

BII and Blue Earth Capital AG , a private markets impact firm, are breaking new ground in this area with a landmark secondaries transaction designed to do just that. Last week affiliate title New Private Markets broke the news that Blue Earth has a secondaries strategy in the works for its forthcoming third pooled fund. The first transaction from this is the acquisition of a portfolio of emerging markets impact fund stakes from BII.

For BII, the transaction was not driven by a desire for liquidity, John Owers, the DFI’s head of fund solutions told NPM. “We’re doing this…"

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