Save the Children - Generation Empowerment Fund
Thematic Focus: Wholesale financing to African financial institutions to support children’s development
Monterey Capital Management
Innovation window · Expansion
Profile
- Type
- Expansion
- Funding
- CHF 421.13
- Sector
- Banking and Financial Services
- Target geography
- Sub-Saharan Africa
Target SDGs
About the solution
Impact Goal: Enhancing children’s access to education, healthcare, nutrition, climate resilience, and water, sanitation, and hygiene
Description: The Generation Empowerment Fund introduces a child-lens investment strategy within impact finance, directly channeling capital to financial institutions and SMEs that enhance child development outcomes. It blends catalytic capital, local currency instruments, and outcome-linked pricing. A tiered capital structure (equity and senior tranches) is enhanced by a potential guarantee mechanism, offering derisked investment opportunities for commercial capital. Outcome-based incentives tie loan pricing to impact performance (e.g., student learning outcomes, access to healthcare, etc.), and technical assistance is integrated into the fund strategy.
Mitigates FX risks through structured credit, hedging, local currency guarantees (e.g., TCX, MFX, ABSA, GuarantCo), and back-to-back lending with local banks. Also aligns loan tenors with SME cash flows and leverages revenue-based lending.