Schroders, a global investment manager, has agreed to acquire a majority stake in Switzerland-headquartered microfinance and impact investor BlueOrchard.

Financial terms of the transaction were not disclosed.

The acquisition is expected to complete in the second half of 2019 subject to usual closing conditions, including regulatory approvals.

Founded in 2001, BlueOrchard is the world’s first commercial manager of microfinance debt investments.

Today, the firm offers investors premium impact investment solutions across asset classes, including credit, private equity and sustainable infrastructure and is an expert in innovative blended finance mandates.

Schroders’ partnership with BlueOrchard supports the expansion of its sustainability capabilities.

This will help to better serve clients who are increasingly seeking investments which have a beneficial impact on society and the environment, as well as generating positive financial returns.

It also accelerates the growth of Schroders in private debt and private equity investments in emerging markets.

Peter Harrison, Group Chief Executive of Schroders, said: “Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets. BlueOrchard’s expertise in this area is exceptional. They share our values, recognising that through our combined contributions, we can purposefully affect positive change. They are a blueprint for the future of our industry and we are delighted to partner together.”

Partnering with Schroders enables BlueOrchard to further drive innovation and growth and increase its impact across emerging and frontier markets. There will be no changes to the management team, processes or strategies that BlueOrchard manages.

Peter A. Fanconi will remain as Chairman of the Board of Directors and Patrick Scheurle as CEO of BlueOrchard.

Schroders will appoint Peter Harrison (Group Chief Executive), Georg Wunderlin (Global Head of Private Assets), and Stephen Mills (Executive Chairman of Schroder Adveq) to the board.

BlueOrchard’s Board of Directors, consisting of both BlueOrchard’s and Schroders’ representatives will adopt joint strategic decisions.

Patrick Scheurle, CEO of BlueOrchard, said: “Schroders’ stable ownership structure and heritage, which is closely aligned with BlueOrchard’s long-term investment philosophy makes them an excellent partner for our business. With the backing of such a strong and like-minded institutional partner, we will be able to further drive innovation and growth and increase our impact substantially, while retaining our investment and operational autonomy. We look forward to continuing to provide an excellent service and the best possible impact investment solutions to our clients.”