Swiss Investment Fund for Emerging Markets (SIFEM)

What Swiss Investment Fund for Emerging Markets (SIFEM) does

SIFEM AG is the Swiss Confederation's official development finance institution (DFI), wholly owned by the Swiss federal government and operating as an integral component of Switzerland's International Cooperation Strategy 2025-2028. Established in 2004 and headquartered in Bern, SIFEM provides long-term financing to small and medium-sized enterprises (SMEs) in developing and emerging markets, channeled exclusively through local financial intermediaries rather than directly to end borrowers. Its overarching mandate is dual: achieve financial sustainability while delivering measurable development impact across poverty reduction, job creation, climate action, and gender equality.

SIFEM's product suite consists of three core investment instruments — private equity fund investments, private debt fund investments, and direct loans to financial intermediaries (banks, microfinance institutions, leasing companies). These are complemented by non-financial services including the SECO Capacity Building Programme, a proprietary Impact Rating Tool (IRT) for systematic impact assessment across the investment lifecycle, and a Technical Assistance Facility that launched its inaugural Skills for Growth programme in 2025. SIFEM is signatory to the Operating Principles for Impact Management and is a member of the European Development Finance Institutions (EDFI) association of 15 peer institutions.

SIFEM is funded by annual capital injections from its sole shareholder, the Swiss Confederation, with capital growing from CHF 500 million in 2012 to CHF 734 million in 2025 and an additional CHF 25 million increase in 2026. As of end-2025, the institution held USD 1.14 billion in active commitments across 107 funds and financial intermediaries, 590 underlying portfolio companies, and 70+ developing and emerging countries. New investment transactions totaled USD 181.9 million in 2025, the highest annual volume on record. Reported performance includes a 5.3% portfolio IRR, a CHF 15.3 million positive operating result, and a USD 4.90 mobilization ratio of private capital per dollar of SIFEM investment.

Name

Swiss Investment Fund for Emerging Markets (SIFEM)

Legal name

SIFEM AG

Website

https://sifem.ch

Company type

Private

Founded year

2004

Operating status

Operating

Headcount range

11–50 employees

Short description

SIFEM is the Swiss Confederation's development finance institution, providing long-term financing through 107 local financial intermediaries to 590 SMEs across 70+ developing and emerging countries, funded by annual capital injections from the Swiss government.

Ownership category

akta.pro rank

Product category

Development Finance

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Finance and Insurance (52)

SIC

Federal & Federally-Sponsored Credit Agencies (6111)

akta.pro primary industry

National Development Banks & State Development Finance Institutions (DFIs) (BPADACAC)

akta.pro secondary industries

Private Sector & Blended Finance Arms (IFC-type) (BPADACAJ), ESG Integration / Responsible Investment Funds (Broad ESG) (FSANAJAL), Technical Assistance, Policy Lending & Capacity Building Programs (BPADACAN), Development Finance & Blended Finance Facilities (BPADAOAD)

Keywords

• Development finance institution
• Impact investing
• Private equity funds
• SME financing
• Emerging markets investment

Headquarters

HQ city

Bern

HQ country

Switzerland

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Others, Marketing or Sales

Revenue model

1. Investment Returns: SIFEM generates returns through investment exits, interest income on loans, and fair value appreciation of its investment portfolio. Returns are reinvested to finance new development projects. The institution aims for self-financing while maintaining development impact.
2. Government Capital Contributions: SIFEM receives annual capital injections from its shareholder (Swiss Confederation) to support growth and maintain financial sustainability. Capital grew from CHF 500 million in 2012 to CHF 734 million in 2025, with an additional CHF 25 million capital increase in 2026.

Distribution channels3 records

Marketing channels5 records

Core offering

SIFEM is Switzerland's development finance institution providing long-term financing through local financial intermediaries — including private equity funds, debt funds, banks, and microfinance institutions — to small and medium-sized enterprises in developing and emerging markets. It deploys capital across three primary instruments: equity participations in PE funds, debt fund investments, and direct loans to financial intermediaries, with a dual mandate of financial returns and measurable development impact aligned with the SDGs.

Product overview

SIFEM operates as a development finance institution providing indirect financing through local financial intermediaries. The core offering consists of three main investment instruments: Private Equity Fund Investments, Private Debt Fund Investments, and Direct Loans to Financial Intermediaries. These are complemented by advisory services through the SECO Capacity Building Programme and specialized tools including the Impact Rating Tool (IRT) for impact assessment and a Technical Assistance Facility offering the Skills for Growth Programme. The organization also provides a Portfolio Explorer tool for stakeholders to view and filter investment data. SIFEM does not offer a single unified software product but rather functions as a financial institution providing development financing services.

Differentiator

Problem solved

Functional benefit

Products and services

• Private Equity Fund Investments

Quantifiable outcome

• 12,750 jobs created or preserved in 2025
• +5 more outcomes

Named customers10 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Ten partnerships are on record, tiered core and minor.

• EDFI (European Development Finance Institutions)coreStrategic or Co-development PartnerSIFEM is a member of EDFI, an association of 15 European development finance institutions. EDFI fosters cooperation, improves efficiency, provides joint representation, develops common policies, and ensures financing opportunities. Through membership, SIFEM contributes to ESG harmonization and collaborates with other European DFIs on shared development objectives.
• Swiss Agency for Development and Cooperation (SDC/ DDC)coreStrategic or Co-development PartnerSIFEM operates under Switzerland's International Cooperation Strategy. In a new cooperation model, investments in least developed countries and fragile contexts will be further developed. The cooperation leverages SIFEM's financial instruments with SDC's development expertise.
• Swiss State Secretariat for Economic Affairs (SECO)coreStrategic or Co-development PartnerSECO defines SIFEM's strategic objectives as the federal authority. SECO and SDC jointly define priority countries for SIFEM investments. SECO also provides technical assistance programs through SIFEM for portfolio companies.
• Swiss Sustainable FinanceminorStrategic or Co-development PartnerSIFEM is a member of Swiss Sustainable Finance, contributing to the development of sustainable finance in Switzerland and globally.
• Global Impact Investing Network (GIIN)minorStrategic or Co-development PartnerSIFEM is a member of the GIIN, participating in impact investing ecosystem development and standards setting.
• 2X GlobalminorStrategic or Co-development PartnerSIFEM participates in 2X Global, an initiative focused on mobilizing capital for gender-lens investing. In 2025, 31% of SIFEM investments already qualify for 2X criteria.
• African Private Capital Association (AVCA)minorStrategic or Co-development PartnerSIFEM is a member of AVCA, contributing to private capital development in Africa.
• Latin American Private Equity & Venture Capital Association (LAVCA)minorStrategic or Co-development PartnerSIFEM is a member of LAVCA, engaging with private capital development in Latin America.
• Global Private Capital AssociationminorStrategic or Co-development PartnerSIFEM is a member of Global Private Capital Association, participating in global private capital ecosystem development.
• Operating Principles for Impact ManagementcoreStrategic or Co-development PartnerSIFEM is a signatory to the Operating Principles for Impact Management, a framework ensuring impact considerations are deliberately integrated throughout the investment lifecycle. The principles were developed by IFC and are hosted by the GIIN.

Scale indicators22 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• COFIDES: Spanish state-owned development finance institution managing development and blended-finance funds for Spanish and EU investments in Latin America and other emerging markets — comparable state-owned DFI mandate.
• British International Investment (BII, formerly CDC): UK's development finance institution investing through PE/VC funds and direct deals across Africa and South Asia — closely matches SIFEM's fund-of-funds model and emerging-market focus.
• Proparco: Private-sector financing arm of Agence Française de Développement (AFD), investing in funds and financial intermediaries across emerging markets with a development impact mandate — same business model and target geographies as SIFEM.
• IFU (Investment Fund for Developing Countries, Denmark): Danish DFI investing in private enterprises in developing markets through funds and direct stakes; same Nordic-style DFI model and EDFI membership as SIFEM.
• Finnfund: Finnish development finance company providing long-term risk capital to private projects in developing countries via funds and direct investments — comparable EDFI peer with similar instruments and ticket sizes.
• FMO (Dutch Entrepreneurial Development Bank): Dutch development finance institution investing in private sector projects in emerging markets via funds, debt, and direct equity — directly comparable mandate, instrument mix, and EDFI membership to SIFEM.
• Norfund: Norwegian Investment Fund for Developing Countries, channeling capital into funds and direct investments in renewable energy, financial inclusion, and SMEs in developing economies.
• IFC (International Finance Corporation): World Bank Group's private-sector development finance arm; the global benchmark for blended-finance DFIs operating via funds, direct equity, and loans to financial intermediaries in emerging markets.
• DEG (Deutsche Investitions- und Entwicklungsgesellschaft): German DFI providing long-term financing through funds and direct investments to private enterprises in developing countries — direct structural and product-line peer to SIFEM within EDFI.
• OeEB (Oesterreichische Entwicklungsbank): Austrian development bank focused on private-sector development in emerging markets via funds, loans and direct equity — direct EDFI peer with similar instrument mix.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/sifem

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments4 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Swiss Investment Fund for Emerging Markets (SIFEM)