Lendable secures $300m for two private credit funds

Lendable has announced the first close of two blended-finance private credit funds, raising more than $300m (£223.7m).

The asset-backed credit provider, which manages around $1bn in assets, confirmed the first close of Lendable MSME Fintech Credit Fund 2 (LMFCF2) and the Lendable Transportation and Energy Fund (LTEF). The firm said both funds are on track to secure $500m in total commitments.

Lendable said the World Bank Group’s International Finance Corporation (IFC) has committed $86m across both funds, alongside a US-based publicly owned financial institution, international development finance institutions, family offices and foundations.

“We are grateful for the confidence shown by leading global institutions, and we look forward to deploying this capital to businesses that deliver both financial returns and tangible impact,” said Chris Wehbe, chief executive of Lendable.

Investors in LMFCF2 include British International Investment, the Belgian Investment Company for Developing Countries, the Netherlands Development Finance Company, FinDev Canada, Proparco and the Deutsche Investitions- und Entwicklungsgesellschaft.

Participants in the LTEF include the Netherlands Development Finance Company and the Swiss Investment Fund for Emerging Markets.

According to Lendable, LMFCF2 provides asset-backed capital to next-generation financial services companies serving underserved populations. The LTEF targets small and medium-sized enterprises and mid-market companies focused on the adoption of sustainable technologies across sectors including renewable energy and agriculture.

“We are pleased to support Lendable’s dual focus on access to finance and sustainability through our investments across its two new funds,” said Mohamed Gouled, vice president of industries at the IFC. “Our partnership reflects our shared commitment to empowering the next-generation of tech-enabled businesses that bring together commercial success, sustainability and meaningful impact on jobs and growth across emerging economies.”