What We Do

As a leading impact asset manager, Finance in Motion focuses exclusively on sustainable development finance. We develop and advise funds whose purpose is to generate positive social and environmental impact alongside a financial return. 

These funds direct capital toward a whole range of topics in low-income countries: from microfinance and small business development to energy and resource efficiency, conservation of biodiversity, and climate action. 

But ensuring lasting change takes more than capital alone. That is why we also manage technical assistance facilities that provide non-financial support to complement the funds’ investment activities. These facilities work to enable conditions that foster and multiply impact. 

Outside of our funds, Finance in Motion itself invests directly in companies who share our vision and values. Through thought leadership and engagement in peer associations, we build the impact investment market and are constantly seeking new opportunities to make finance a force for good.

How We Do It

Blended Finance: Turning One Plus One into Three

At Finance in Motion, we pioneered a layered fund structure that combines public and private capital. This mobilizes more development finance than either sector can achieve on its own.

Here is how. Public monies create a risk cushion to enable investments from the private sector. In other words, government entities and donors provide the initial financial foundation by investing early on in the fund’s equity, junior, or mezzanine shares. Private investors then purchase notes whose risk is buffered by the other layers.

This way, the fund allows initial catalytic investments to unleash a larger volume of money – enabling more impact – than would have been possible alone. And private investors can enter new markets for ethical investments thanks to a risk buffer. This blended finance model thus multiplies the potential of both groups to achieve social and environmental impact, creating a whole that is more than the sum of its parts.

A Systemic Approach for Sustainable Impact

To best reach our target groups and support financial sector development, the impact funds typically channel debt or equity investments through local financial intermediaries. These on-the-ground partners lend the money to end beneficiaries according to strict impact parameters. In some cases, funds invest directly in, for example, green energy projects, or lend money directly to selected investees.

Grant-based technical assistance complements financial activities by promoting the conditions that help investments generate the most impact. These can involve systems, people, multipliers, or tools. Projects range from risk management training for local banks and business skills workshops for entrepreneurs, to awareness raising events for sustainable agricultural practices or research on green energy technologies. 

What About Local Currency?

Where possible, our funds provide loans to investees in local currency. This cushions them from the risks attendant to exchange rate fluctuations, stabilizing local financial institutions and protecting small borrowers.

Finance in Motion’s Expertise

Investment Management

As an impact asset manager, comprehensive investment management deploying the full suite of financial instruments – debt and equity – is at the core of what we do. 

First, we ensure that a potential investee conforms to the high standards of our funds. We conduct thorough due diligence that covers a potential investee’s financial and impact performance, compliance with environmental and social standards, as well as technical aspects and industry expertise. 

A specially designated investment committee – set up by the funds’ investors – approves all investment decisions. Once the investment is made, we regularly monitor and report on its financial and impact performance. Findings inform future strategy and decision making. 

Technical Assistance

Finance in Motion manages all technical assistance facilities of the impact funds. Conducting hundreds of projects on multiple continents, these comprehensive facilities provide tailored support to help boost and anchor impact. Beneficiaries range from financial institutions and industry associations to individual entrepreneurs and farmers.  

Finance in Motion staff apply their expertise throughout the project lifecycle: conducting market research and needs analyses, activating stakeholders, implementing projects, and monitoring results. Events – such as conferences, training, and tournaments – play a significant role in raising awareness of social and environmental challenges and connecting the key players to address them.

Risk Management

Risk management is one of Finance in Motion’s specialties when it comes to making smart investments. Our risk management experts assume an integral role in the origination of all types of investments, from debt transactions to project finance and equity deals. They approve the eligibility of counterparties, participate in on-site due diligence visits, and provide investment advice in internal and external committees.

They rigorously monitor fund investments and scrutinize developments in all relevant economic and geographical areas. Risk management works hand-in-hand with investment management to perform ratings, create risk reports, and develop tools and methodologies to ensure our investments are robust and secure.

Impact & Sustainability

Impact investment is our business, and making a difference is our specialty. We are firmly positioned at the forefront of developments in impact frameworks, environmental and social standards, and industry best practices. 

It is of utmost importance to us to ensure that we and the funds we advise deliver on our impact goals. To this end, we carefully monitor, analyze, and report on our impact. We use the findings and results as guidance for fine-tuning strategies and reacting flexibly to changing conditions. We also provide consulting and capacity building for projects to assure compliance with our high social and environmental standards.

Sector Specialization

We are specialists in green finance and micro and small business finance. 

Our dedicated “green teams” are compiled of international experts in topics including energy efficiency, renewable energy, sustainable agriculture, and sustainable forestry. These specialists apply the latest knowledge in the field to advance green finance in our funds’ target regions. In many cases, we are pioneers – investing in, for example, a country’s first-ever commercial-scale wind park and thus paving the way for future impact investments in that area.

We have years of experience in supporting access to finance for underserved groups and creating a conducive environment for entrepreneurs. We are constantly innovating new ways to tap the potential of financial technology to attain our funds’ impact objectives, and know how to serve the “missing middle” of small businesses so as to bolster economies and create jobs. Where we see a need, we even help create new financial institutions in order to fill gaps in the market.

General Fund Services

Finance in Motion provides the full range of fund advisory services. We have professional in-house teams taking care of fund structuring and administration, treasury, financial reporting, transaction management, legal frameworks, investor relations, and marketing and communications. We accompany investments from start to completion, providing investors with regular updates and answering any questions along the way.

Regional Market Presence

We are active in Southeast Europe, the European Eastern Neighborhood Region, Latin America, the Middle East and Africa.

Our on-the-ground, bottom-up investment selection is driven by a superior regional market presence. We value proximity to partner institutions, staying abreast of investee requirements and knowing where to provide tailored technical assistance.

Our local staff in 16 offices are embedded in strong networks and can identify new developments in real time. They help investors stay informed about changes in regulatory policies, lending practices, macro trends, governance, and general information affecting market sectors.

Market Presence