MEDA is a recognized global leader in impact investing, blended finance and market-based programs that assist millions of people around the world to realize their economic and social aspirations.
The MEDA Risk Capital Fund (MRCF), is a pool of investment assets owned by MEDA. By investing in viable Small and Medium-Sized Enterprises (SMEs) and funds in developing markets, MEDA strives to support the economic advancement of excluded, low-income and disadvantaged communities including women and youth.
The critical role and need for investment capital in developing markets is only continuing to grow. In 2018, MEDA’s investment outreach benefitted over one million households and over 90,000 women, men and youth participated in MEDA programming. From its founding investors in 1953 to the establishment of MEDA as a non-profit entity in 1973, MEDA has adapted alongside market trends and the evolving nature of investing risk capital in developing markets.
* Data from FY 2020 reports
MEDA is experienced in structuring blended finance partnerships that allow for different types of capital to achieve commercial and impact objectives. An early leader in blended finance, MEDA partnered with the Government of Canada in 2013 to pilot the use of concessionary finance to raise private capital for development-related investments in private equity and trade finance. A key aspect of these partnerships is the provision of technical assistance to funds and SMEs to support the achievement of the Sustainable Development Goals.
MEDA’s investments ultimately aim to contribute to poverty alleviation through supporting local economic growth, creating jobs and decent working conditions, and promoting gender equality and environment and climate change.
While MEDA staff participate in sourcing and recommending investees and designing technical assistance, MEDA utilizes a thirdparty asset management firm to ensure deals undergo rigorous and objective financial due diligence and monitoring. Currently, MEDA engages Sarona Asset Management in this role.
MEDA seeks to enhance development outcomes achieved by investee funds and SMEs through assessments, capacity building, training, challenge grants, and introducing appropriate methodologies, incentives, tools and technologies. For example, MEDA applies the Gender Equality Mainstreaming Framework (GEM) with trade finance intermediaries to integrate gender lens investing in their investment policies and practices including promoting gender upgrading in their portfolio for business growth and impact.