Luxembourg Microfinance and Development Fund

What Luxembourg Microfinance and Development Fund does

Luxembourg Microfinance and Development Fund (LMDF) is a sub-fund of Investing for Development SICAV, a Luxembourg-regulated investment vehicle (SICAV Part II under the law of 17 December 2010) that has been operating since 2009–2010. LMDF invests in debt instruments to refinance emerging microfinance institutions (MFIs) in Africa, Latin America, and Asia, targeting institutions with 3–5 years of operating maturity and a strong social mission. As of the latest reporting, it has financed 45 MFIs across 23 countries, deployed €37.7 million in cumulative microfinance capital, and reached 65,821 micro-entrepreneurs—74% of whom are women—with an average micro-loan size of €1,967.

The fund operates a multi-share-class architecture designed to align social mission with investor protection. Class A shares (subscribed by the Luxembourg State) and Class Abis shares (subscribed by ADA asbl) are non-redeemable and absorb first losses, providing at least 20% capital protection to Class C retail and non-profit investors. Class B shares serve institutional investors with a target annual return of 2.18% (EUR); Class C shares target individuals and non-profits with a return of up to 2% annually, distributed through NAV appreciation rather than dividends. The fund uses proprietary social performance assessment tools (ALINUS and SPI Online ALINUS) developed with Cerise + SPTF to benchmark investee MFIs against 35 client-protection indicators.

LMDF distributes Class C shares directly with the fund and through six Luxembourg banking partners (BIL, BGL BNP Paribas, BCEE, Banque de Luxembourg, Spuerkeess, and Raiffeisen), with online subscription enabled at BGL BNP Paribas and Spuerkeess under ISIN LU0456967404. BIL Manage Invest S.A. has served as the external AIFM since December 2023. The fund holds the LuxFLAG Microfinance Label (valid through March 2026), a PRI A rating, LGX listing, and SFDR Article 9 classification, and is signatory to the National Business and Human Rights Pact. In September 2025, LMDF entered a strategic partnership with Camco as investment adviser to strengthen sourcing and operational effectiveness.

Name

Luxembourg Microfinance and Development Fund

Legal name

Investing for Development SICAV – Luxembourg Microfinance and Development Fund

Website

https://lmdf.lu

Company type

Private

Founded year

2009

Operating status

Operating

Headcount range

11–50 employees

Short description

Luxembourg Microfinance and Development Fund (LMDF) is a Luxembourg SICAV Part II investment fund that refinances emerging microfinance institutions across 23 countries, reaching 65,821 micro-entrepreneurs—primarily women—while offering impact investment opportunities to retail and institutional investors through a multi-bank distribution network.

Ownership category

akta.pro rank

Product category

Microfinance Impact Investment Fund

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Other Investment Pools and Funds (5259)

SIC

Investment Advice (6282)

akta.pro primary industry

Development Finance & Blended Finance Facilities (BPADAOAD)

Keywords

• Microfinance fund
• Impact investing
• Development finance
• Emerging market lending
• ESG investment

Headquarters

HQ city

Luxembourg

HQ country

Luxembourg

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Microfinance Debt Investments: LMDF invests in debt instruments to refinance emerging microfinance institutions (MFIs). The fund generates returns through interest income and capital appreciation from its portfolio of microfinance loans. Returns are distributed through increases in NAV per share rather than dividends (for tax reasons). Class B targets institutional investors; Class C targets individuals and non-profits with a target annual return of up to 2% for Class C investors.
2. Microfinance Investment Returns: The fund generates financial returns sufficient to sustain its own operations and provide shareholders with returns that at least compensate for inflation. Average annual return for Class B shares is 2.18% (in EUR); Class C returns approximately 0.6% to 1.37% annually.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

Luxembourg Microfinance and Development Fund (LMDF) is a sub-fund of Investing for Development SICAV, a Luxembourg-regulated investment fund (SICAV Part II) that invests in debt instruments to refinance emerging microfinance institutions (MFIs) across Africa, Latin America, and Asia. The fund offers multiple share classes — Class B for institutional investors and Class C for individuals and non-profits — with a unique first-loss protection mechanism where the Luxembourg State (Class A) and ADA (Class Abis) absorb initial losses.

Product overview

Luxembourg Microfinance and Development Fund (LMDF) operates as a sub-fund of Investing for Development SICAV, offering a structured multi-share-class investment platform for microfinance impact investing. The fund comprises four share classes: Class A (Luxembourg State, non-redeemable first-loss protection), Class Abis (ADA, non-redeemable first-loss protection), Class B (institutional investors targeting 2.18% annual return), and Class C (retail/non-profit investors with capital protection). All share classes access the same diversified portfolio of emerging market MFIs across 23 countries in Africa, Asia, and Latin America, with 74% of financing targeting women micro-entrepreneurs. The fund can be accessed through direct subscription with the fund's administrative agent, partner bank branches, or online banking platforms (BGL BNP Paribas, Spuerkeess). Investors receive quarterly factsheets and annual social/financial performance reports.

Differentiator

Problem solved

Functional benefit

Products and services

• Class C Shares Share class open to individuals and non-profit organizations (a.s.b.l.) seeking to invest in microfinance with limited risk exposure. Protected by a first-loss mechanism through Class A and Abis shares subscribed by the Luxembourg State and ADA respectively, ensuring at least 20% capital protection. Target annual return of up to 2% with quarterly subscription and redemption windows and 45-day notice required.

Quantifiable outcome

• 45 MFIs financed across 23 countries
• +6 more outcomes

Named customers11 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature2 records

Partnerships

Eleven partnerships are on record, tiered core, major and minor.

• CamcocoreStrategic or Co-development Partner · 1 September 2025New partnership effective 1 September 2025, opening new perspectives to strengthen reach and operational effectiveness. Collaboration supports the fund's mission to enhance social and financial performance.
• BIL Manage Invest S.A.coreOthers · 15 December 2023Appointed as external AIFM (Alternative Investment Fund Manager) effective 15 December 2023. Has established specialized advisory committee (Investor Committee) to advise on inclusive finance aspects of the investment process.
• BGL BNP ParibasmajorChannel Partner/ Reseller/ DistributorFounding banking partner offering LMDF subscriptions through branches and online banking.
• BCEE (Banque et Caisse d'Épargne de l'État)majorChannel Partner/ Reseller/ DistributorFounding banking partner supporting fund since 2009.
• Banque de LuxembourgmajorChannel Partner/ Reseller/ DistributorFounding banking partner with long-standing support.
• SpuerkeessmajorChannel Partner/ Reseller/ DistributorBanking partner offering LMDF subscriptions via online banking platform.
• RaiffeisenminorChannel Partner/ Reseller/ DistributorBanking partner in Luxembourg.
• Elvinger Hoss PrussenminorOthersLuxembourg law firm supporting fund operations.
• e-mfp (European Microfinance Platform)minorOthersIndustry association membership for networking and knowledge sharing.
• infineminorOthersLuxembourg finance industry association membership.
• Cerise + SPTFcoreStrategic or Co-development PartnerSignatory of Cerise+SPTF Joint Statement since 2021. Uses SPI Online ALINUS tool for social performance assessment. Active in Social Investors Working Group. Commits to annual reporting on client protection measures.

Scale indicators8 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• responsAbility Investments: Swiss-based impact asset manager running investment funds that finance microfinance institutions and SMEs in developing countries. Directly comparable to LMDF in investor base, product structure, and target MFIs.
• BlueOrchard Finance: One of the world's largest microfinance investment managers, operating Luxembourg-domiciled funds similar to LMDF. Directly comparable in offering debt capital to emerging-market MFIs with strong social mandates and serves both institutional and retail investors.
• Triple Jump: Amsterdam-based impact investor managing multiple funds that lend to microfinance institutions and SMEs across emerging markets. Directly comparable in fund structure, target MFIs, and emphasis on social impact alongside financial returns.
• Incofin Investment Management: Belgian impact investment manager running the Fair Trade Fund and other vehicles that provide debt and equity to MFIs in developing countries. Closely mirrors LMDF's mission, target investees, and investor base.
• Symbiotics: Geneva-based asset manager specializing in microfinance and impact investing, with multiple regulated funds. Operates a similar debt-financing model to emerging-market MFIs and shares LMDF's SICAV-style fund structure.
• Calvert Impact Capital: US-based impact investing intermediary that issues community investment notes and lends to organizations serving low-income communities globally. Comparable in offering retail-accessible impact investment products with a strong social mission.
• Oikocredit: International cooperative that provides debt and equity financing to microfinance institutions and cooperatives in developing countries. Shares LMDF's retail-accessible impact investment model and focus on financial inclusion.

Broad incumbents

• European Investment Fund: EU body providing guarantees, counter-guarantees, and fund-of-funds investments across microfinance and impact investing. Comparable as a major European microfinance capital provider though with a broader mandate and public-sector positioning.

Emerging players

• ADA (Appui au Développement Autonome): Luxembourg NGO that serves as LMDF's investment advisor and holds Class Abis shares. Closely related entity providing MFI due diligence, capacity building, and peer learning — a strategic partner that has overlapping microfinance expertise.

Others

• European Microfinance Platform (e-MFP): Industry association that LMDF is a member of; serves as a knowledge-sharing and networking platform for European microfinance actors. Comparable as an ecosystem participant rather than a direct competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/feed/update/urn:li:activity:7392507866483617792
• Xx.com/IforD_LMDF

Compliance8 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds

Investors

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

M&A

Investments1 record

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

Frequently asked questions about Luxembourg Microfinance and Development Fund