Commitment to Action

Essential Capital Consortium

Commitment by

Deutsche Bank Americas

In 2012, Deutsche Bank committed to structuring an innovative seven-year investment fund - the Essential Capital Fund - that provides crucial catalytic funds to socially responsible investment funds and enterprises that support the microfinance and social enterprise sectors. The Fund represents a pioneering effort in the impact investing field because it provides risk mitigation mechanisms for others investors. Specifically, by deferring a portion of its management fee, generating a savings reserve via a step coupon mechanism for investor returns and offering a 10 percent guarantee, the Fund promises to unlock significant capital currently reluctant to engage in unproven sectors. Slated to reach $50 million in portfolio size by 2015 and designed in collaboration with leading social impact stakeholders,the Essential Capital Fund will invest in: 1) first loss positions of debt funds, 2) guarantees on loan syndications, 3) loans to impact investments, and 4) other innovative opportunities.

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Overview
Summary

Commitment

Essential Capital Consortium

Launched

2012

Est. Duration

6 Years

Estimated Total Value

$50,000,000

Region

Latin America & Caribbean, Asia

Countries

BOLIVIA, CAMBODIA, CHILE, COLOMBIA, ECUADOR, EL SALVADOR, GHANA, GUATEMALA, HONDURAS, INDIA

Commitment by

Deutsche Bank Americas