KATHMANDU, May 11: Dolma Fund Management (DFM) on Tuesday announced the first close of the second impact fund (Dolma II), a private equity fund worth $ 40 million, investing in renewable energy, healthcare and technology in Nepal.
Investors in this $ 40 million first close include FMO, the Dutch entrepreneurial development bank; CDC Group, the UK’s development finance institution and impact investor; Swedfund, the Swedish development finance institution; and the International Finance Corporation (IFC). The final close is targeted at $75 million.
Citing the growing risk of the coronavirus spread, Dolma II has targeted to address directly capacity constraints in healthcare and enable digital solutions to scale rapidly that will be vital both during and following the pandemic. The initiative is the second edition of Dolma Impact Fund, which pioneered institutional foreign direct investment (FDI), and Environmental and Social standards since 2014.
Dolma I’s portfolio includes almost 50 MW of renewable energy, some of the country’s leading AI and e-commerce firms, and much-needed pharmaceutical manufacturing and medical care. Other foreign investment successes in Nepal include an internet service provider, mobile telco and hydropower projects.
According to IFC’s Resident Representative Babacar Sedikh Faye, the IFC is joining hands with DFM with an aim to deepening the private equity market in Nepal. “Private equity funds can be an important source of capital and expertise for local entrepreneurs in Nepal—particularly in allowing them to expand their businesses, create more jobs, and provide essential goods and services,” he said.