Finnfund Digital Access Impact Fund

Finnfund is preparing a fund that will focus on digital solutions and infrastructure in emerging and frontier markets. The fund, which will be launched in 2025, will voluntarily aim to meet the criteria for the Dark Green Funds according to the Article 9 of the European Sustainable Finance Disclosure Regulation (SFDR) ¹⁾.

Promoting gender equality in the digital sector is a priority for the fund. At least 30 % of new investments will be targeted to meet the 2 X Criteria, the global industry standard for assessing and structuring investments that provide women with leadership opportunities, quality employment, finance, enterprise support, and products and services that specifically target or disproportionately benefit women and enhance their economic participation and access to services and products.

Finnfund Digital Access Impact Fund in brief

Finnfund Digital Access Impact Fund is an equity fund focused on digital infrastructure and solutions in emerging and frontier markets. The investments are targeted towards the regions and digital subsectors with the most attractive risk-return potential²⁾ while focusing on creating positive social impact. In addition to financial return, the Fund aims to increase digital, financial, and gender inclusion with its investments.

The Fund’s general partner is Finnfund GP Ltd. The Fund voluntarily aims to meet the criteria for the Dark Green Funds according to the Article 9 of the European Sustainable Finance Disclosure Regulation (SFDR).

Attractive market opportunity

The persistent challenges in the digital sector in emerging and frontier markets present a clear investment opportunity for impact-minded investors. Digital infrastructure is a crucial part of the critical backbone of modern societies but about a third of the global population still lacks access to essential digital services. The Fund’s investments will target to bridge this digital divide by:

Closing the coverage gap and connecting the unconnected, especially in rural areas and unserved or underserved communities.
Closing the usage gap by promoting affordability and enabling reliable, affordable and meaningful internet access for all by improving critical infrastructure.
Promoting meaningful access and digital, gender, and financial inclusion by investing in scalable high impact technology solutions.

Finnfund’s experience in working in the digital sector and emerging and frontier markets overall allows the Fund to target its investments towards the regions and digital subsectors with the most attractive risk-return potential while focusing on creating positive social impact.

Focus on digital infrastructure and solutions

The investments focus is on providing expansion and growth capital to companies in the following sectors, among others:

Submarine connectivity
Fiber and mobile networks
Data centers
Telecom towers and shared infrastructure, such as tower energy services
Digital services such as fintech, insurtech, healthtech, edutech and agtech and others.

The geographical scope of the fund focuses on Africa, Latin America, and Emerging Asia, the operating companies being located in OECD DAC ODA countries.

_{1) Neither the General Partner, the Manager, nor the Fund is subject to regulatory oversight by the Finnish Supervisory Authority or any other regulator. The Manager operates under an exemption provided in Chapter 1, Paragraph 4 of the Finnish AIFM Act, allowing it to manage an alternative investment fund without being a registered or authorized alternative investment fund manager as defined by the Finnish AIFM Act. Consequently, the European Sustainable Finance Disclosure Regulation (SFDR) does not apply to this fund. Nevertheless, the General Partner and the Manager have voluntarily chosen to comply with the SFDR and aim to manage the fund as an SFDR Article 9 financial product.}

_{2) This is not a guarantee of future performance. Investment outcomes are subject to various risks and uncertainties, and actual returns may differ. Investors should conduct their own research and consult with financial advisors before making investment decisions.}

Finnfund Digital Access Impact Fund