Risk capital in the form of private equity and mezzanine finance is crucial for helping businesses grow. As an equity investor in higher-risk environments, FMO has a clear role to play. We bring more to the table than financing alone: we stay close to the companies we invest in, supporting the integration of ESG into their operations. Private equity and mezzanine also offer attractive returns, which contribute to our long-term financial strength.
Our private equity model is based on partnerships with fund managers. We invest in a wide range of funds and co-invest directly in projects alongside these funds.
We select our investments primarily based on impact and return potential. FMO also actively seeks out investments where we can play a supporting role, for example when working with (often first-time) fund managers in our focus sectors, in low-income countries and in frontier markets. Our experience shows we can have the highest relevance and development impact in these sectors and markets, where we can put our substantial network and knowledge of best practices to good use.