In brief: Netherlands launches DFI with €833m

Invest International will invest directly and via funds into Dutch SMEs contributing to the UN’s Sustainable Development Goals.

The Netherlands has set up a development finance institution, Invest International, with €833 million for private equity and debt investments. Invest International will invest directly and as an LP in externally managed funds and will seek net-positive, below-market rate returns, a spokesperson told New Private Markets.

The DFI is 51 percent owned by the Dutch state and 49 percent by the Netherlands’ existing development bank, FMO. It is targeting Dutch start-ups and SMEs that contribute to the UN’s Sustainable Development Goals, focusing on the agriculture, food, healthcare, water, infrastructure, sustainable production, climate and energy sectors.

The institution is set to serve as a vehicle for several other development financing initiatives by the Dutch government: managing a €300 million fund for Dutch start-ups and SMEs; acquiring FMO’s NLBusiness portfolio – which invests in the food, water, education, health and climate sectors in developing markets; and a €165 million annual budget to invest in public infrastructure in developing markets.