Investment Strategy
SIFEM is a distinctive development finance institution in that it invests exclusively through fund structures rather than making direct investments. This fund-of-funds approach has made SIFEM one of the most active institutional LPs in emerging market private equity, with a portfolio spanning dozens of funds across developing and emerging countries. The institution’s mandate is to contribute to sustainable economic growth and poverty reduction by supporting private enterprise development through equity and mezzanine fund investments.
The portfolio spans private equity (buyout, growth equity, and venture capital), infrastructure, and mezzanine/private credit funds. SIFEM has developed particular expertise in evaluating fund managers operating in challenging markets, including least-developed countries and fragile states. The institution’s fund-only model allows it to build diversified exposure across geographies, sectors, and fund vintages while leveraging the local knowledge and operational capabilities of fund managers. SIFEM has been an important anchor investor for many emerging and frontier market funds, providing catalytic capital that helps managers reach first close.
SIFEM’s investment decision-making integrates development impact assessment with financial analysis, evaluating funds based on their potential to create jobs, generate tax revenues, transfer knowledge, and promote environmental and social sustainability. The institution is managed by Obviam, a specialized investment advisor based in Bern that conducts due diligence, monitors portfolio performance, and engages with fund managers on ESG and development impact issues.
How to Approach
Fund managers seeking investment from SIFEM should demonstrate a clear track record of investing in developing countries and the ability to generate both financial returns and measurable development impact. SIFEM is open to both established and emerging managers, particularly those with deep local teams and expertise in underserved markets. The institution has been a supportive anchor investor for first-time fund managers with strong prior investment experience.
Engagement is facilitated through Obviam, SIFEM’s investment advisor, which manages the origination and due diligence process. Managers should contact Obviam directly or engage through development finance networks and conferences. SIFEM participates actively in the EDFI network and other DFI coordination platforms. The due diligence process is comprehensive, covering investment strategy, team quality, ESG management, development impact methodology, and governance structure.
Frequently Asked Questions
What is SIFEM?
SIFEM is the Swiss Investment Fund for Emerging Markets, established as Switzerland's development finance institution. Owned by the Swiss Confederation, SIFEM invests exclusively through fund structures, making equity investments in private equity, venture capital, infrastructure, and mezzanine funds that target developing and emerging countries.
How does SIFEM's fund-only model work?
Unlike many DFIs that make both direct investments and fund commitments, SIFEM invests exclusively through fund intermediaries. This approach allows SIFEM to leverage fund managers' local expertise and networks while maintaining a diversified portfolio across geographies and sectors. The fund-only model also means SIFEM is a particularly active LP in emerging market private equity.
What geographies does SIFEM target?
SIFEM targets low-income and lower-middle-income countries across Sub-Saharan Africa, South and Southeast Asia, Latin America, and Eastern Europe/Central Asia. The institution has a mandate to focus on countries where development needs are greatest and where private capital markets are least developed.
