IMPACTASSETS 50™

An Annual Showcase of Impact Investment Fund Managers

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An Annual Showcase of Impact Investment Fund Managers

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ImpactAssets 50: A Global Landscape of Impact Investment Fund Managers
The ImpactAssets 50 (IA 50) is the first open-source, publicly published database of experienced private debt and equity impact investment fund managers.
https://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

IA 50 2024 PROFILE

Stichting Medical Credit Fund

Total Assets Under Management: $25 – 49M
Asset Class: Private Debt - Absolute Return / Notes
Primary UN Sustainable Development Goal: 3 – Good Health & Well-Being
Small/Medium Business Development
Microfinance, low-income financial services & micro-insurance
Global Health

Firm Overview

Category: Private Debt - Financial Inclusion (Microfinance, SME Finance and/or CDFIs - Emerging Markets)

Medical Credit Fund (MCF) is a not-for-profit foundation established by PharmAccess Group in 2009 under The Netherlands' law. For the past 20 years, PharmAccess has been committed to increasing access to quality healthcare services for vulnerable groups in sub-Saharan Africa, utilizing advancements in technology and connectivity. MCF’s mission involves mobilizing public and private resources to benefit healthcare providers and patients through various means, including providing loans to healthcare entrepreneurs, setting quality standards through SafeCare, facilitating health insurance, attracting private investments, and conducting impact and operational research. PharmAccess takes an integrated approach, addressing both the demand and supply sides of healthcare, and employs digital tools to connect patients, providers, and payers. MCF plays a vital role by offering capital and technical assistance to private healthcare firms, thereby enhancing and upgrading their operations. Furthermore, MCF leverages innovative digital solutions to scale its impact in the healthcare sector and beyond.

Firm Headquarters: Western Europe
Years of Operation: 10 years or more
Total Assets Under Management:
$25 – 49M
Total Number of Investors: Between 5 – 25
% of Capital from Top 3 Investors: 25% – 49%
Investment Thesis:

MCF addresses the growing demand for quality healthcare services in sub-Saharan Africa by providing loans and partnering with SafeCare for a quality and business improvement program tied to those loans, empowering private healthcare businesses to enhance their capacity, ultimately enabling them to deliver improved services to a broader clientele.

Investment Overview:

MCF recognizes that the public health sector in most African countries struggles to meet the growing demand for healthcare. Consequently, 50% of the population turns to the private sector, which is predominantly comprised of Small and Medium-sized Enterprises (SMEs). These healthcare facilities, however, face significant challenges in accessing the necessary financing to expand their operations. MCF bridges this gap by providing health SMEs with capital and technical assistance to enhance the quality of healthcare provided, mitigate investment risks and facilitate scalability. MCF’s beneficiaries comprise diverse healthcare entities, including clinics, health centers, hospitals, pharmaceutical and equipment suppliers. The fund offers local currency loans of up to EUR 5 million, complemented by a technical assistance program (SafeCare) for evaluating, improving, and certifying incremental quality improvements. Additionally, MCF responds to market needs by introducing innovative financial products, including a digital loan product based on mobile money turnover and receivable finance through insurance claims.

Company Differentiator:

MCF distinguishes itself from its peer group through its commitment to innovation and the utilization of mobile and digital technology. A prime example is the MCF Digital Loan product, an offering that provides health SMEs with mobile money-based loans featuring flexible repayments linked to mobile revenue. This innovative approach addresses the unique needs of healthcare businesses, offering convenience and requiring no collateral. Currently operational in Kenya and Ghana, MCF plans to expand the product to Tanzania in 2024. What further sets MCF apart is its comprehensive approach. Beyond merely extending loans, MCF is dedicated to enhancing the business and quality performance of its clients, thereby strengthening their capacity and resilience. This is achieved through an effective technical assistance program, delivered in collaboration with PharmAccess. MCF’s holistic approach ensures that healthcare enterprises not only access capital but also receive the support needed to thrive and provide high-quality care to their communities. 

Investment Example

Kinondoni Hospital, originally established as a dispensary in 1980 by Dr. Lubero Mvungi in Kinondoni district, Dar-Es-Salaam, has grown a regional hospital with a strong focus providing affordable healthcare, particularly for low income individuals. In 2010, the hospital expanded its services significantly. In 2022, Dr. Mvungi encountered MCF, and this proved transformative. The hospital, facing financial constraints, had outdated equipment that hindered its ability to upgrade critical facilities. With support from an MCF loan, Kinondoni Hospital was able to acquire modern equipment, significantly improving its theatre, intensive care unit, and equipping department for dialysis and chemotherapy.  As a result, Kinondoni Hospital has evolved into one of the region’s few healthcare facilities offering oncology services, major pediatric and orthopedic surgeries, and dialysis treatments. This expansion has allowed the hospital to play a crucial role in addressing healthcare gaps and serving a broader patient population in the region.

Leadership and Team

Cumulative Leadership Experience in Impact Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
10 – 19 years
Arjan Poels – Managing Director More Info

Experienced Development Banker with a passion to grow SMEs and strengthen financial institutions in sub-Saharan Africa. Held senior executive positions in Commercial Banking, Risk Management, Change Management and Development Finance focusing on the sectors health, agriculture, education, manufacturing and trade.
Tendai Taderera – Finance Director More Info

Tendai Taderera is a financial services professional with more than ten years experience gained in the Netherlands, United Kingdom and South Africa. She has amongst others worked at ING Bank, KPMG and Deloitte. She is a Registered Chartered Accountant CA(SA) with an Honours Degree in Accounting Science from the University of Witwatersrand.
Kennedy Okong’o – Director Medical Credit Fund East Africa More Info
Percentage of Investment Professionals who identify as women:
25% to less than 50%
Percentage of Investment Professionals who identify as people of color:*
50% or more
Percentage of Senior Management Team who identify as women:
25% to less than 50%
Percentage of Senior Management Team who identify as people of color:*
50% or more
*People of color include: Black, Latinx, Asian, Native American/Alaskan Native, Pacific Islander, Middle Easterm and multi-racial Americans

Financial Performance

Target Financial Returns Relative to Benchmark:
Near-market Rates
Actual Performance of Impact Products/Funds Relative to Target Financial Returns in the Past Three Years:
In line with initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
100%
Primary Impact Outcomes:
Increasing access to healthcare services and improving health
Secondary Impact Outcomes:
Creating jobs
Increasing access to financial services
Addressing gender inequities
Value-added Services Offered:
Business and legal training
Other: Technical assistance (e.g. quality improvement)

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:

The Medical Credit Fund's primary objective is to increase the delivery of affordable quality healthcare services, particularly to underserved populations, by enhancing access to capital and reducing investment risk. Every borrower, including health facilities, diagnostic centers, pharmaceutical, and medical supply distributors must serve this goal. MCF’s due diligence process specifically assesses the social impact of potential borrowers, including the populations they serve. In addition, the selected healthcare facilities participate in a medical and business quality improvement program that strengthens their business case, debt servicing capacity, and reduces their credit and medical risk. Through its program MCF impacts women at various levels, by improving mother and child care services, by empowering female staff working at the facilities (majority of staff is female) but also by supporting female entrepreneurs. The digital loans do not require collateral, which is a common hurdle for access to financing, especially for women.

Investments systematically include social and environmental sustainability practices in the due diligence process:

Healthcare facilities that seek loans from MCF are required to participate in a quality improvement program using the internationally recognized SafeCare standards (www.safe-care.org). These standards were developed in partnership with the Joint Commission International of the U.S.A. and the Council for Health Service Accreditation of Southern Africa. The SafeCare Standards mandate that healthcare providers not only adhere to local laws and regulations but also actively work to reduce and control hazards and risks, prevent accidents and injuries, and maintain a safe environment. Furthermore, providers are expected to plan for occupational health and safety programs, fire safety measures, emergency protocols, handling hazardous materials and ensuring security. This comprehensive approach underscores MCF's commitment to promoting social and environmental sustainability within the healthcare sector.

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Impact Verified by an Independent Third-Party:
No
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to the public
Third Party Validations:
GIIRS-rated fund
B-Corp certified firm
Participant in Global Reporting Initiative
Signatory of the United Principles for Responsible Investing
Member of Impact Capital Managers
Impact Frontiers Cohort Participant
Implement recommendations from Task Force on Climate Related-Financial Disclosure
Net Zero Assets Managers Initiative
Utilizes standardized impact metrics (e.g. IRIS+, GIIRS, etc.)
Listed on ImpactBase
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing
Participant in the Impact Management Project
Signatory of the Operating Principles for Impact Management
None

Learn More

Key Contact Name: Arjan Poels
Phone: +31 (0) 20 2103921
Website: https://www.medicalcreditfund.org/
Mailing Address:

AHTC Tower C4, Paasheuvelweg 25, Amsterdam, 1105 BP, Netherlands

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