For our investee companies our support can help them to grow and mature until they are able to tap into regular local or regional financial markets. We target companies that have outgrown the microfinance level and have good growth perspective and the potential to create relevant impact. We offer capital investments in the range from 200K€ up to 800K€ per investment. We prefer to partner with other impact investors. Smaller businesses with capital requirements below 200K€ we target through financial intermediaries, that have the infrastructure to process smaller ticket sizes.
ICCO Investments has a number of financial instruments at hand to tailor the investment requirement in a way that is healthy for the cash-flow of the investee company and that has a balanced risk - return profile for ICCO Investments. The instruments we deploy are debt, equity, guarantee or a mezzanine combination of instruments.
The overall targeted net return (IRR) of the funds under management is 2%. The total size of current funds under management is about 30M€ (committed capital) of which 20M€ is still to be invested. We balance our portfolio through our instruments (equity ~25%, debt ~65%, guarantees ~10%). Return expectations on individual equity investments lie in the range of 25% - 30% and for debt instrument (in Euro) around 10% - 12%. We are able to provide local currency loans by adding various country risk elements to the interest component.