Liquidity Platform for Impact (LPI) is an EFSD+ Guarantee Programme run by EDFI MC and initiated by two European investment companies – 2^nd Aries and Octobre – to create a secondary market for investments in emerging markets.

The private financing flows to reach the UN SDGs in emerging markets show a funding gap of more than 3.7 trillion US dollars a year. These objectives can only be attained if private capital is mobilized at scale, yet the weak exit environment, e.g. lack of liquidity, is a crucial barrier that deters private investors from investing more in emerging markets.

LPI is an innovative blended finance initiative designed to address the lack of liquidity in emerging markets by creating a secondary market platform. This platform will offer exit opportunities to investors holding positions in impact funds facilitating greater flexibility and portfolio management. By doing so, LPI strengthens the impact finance ecosystem by attracting a broader base of private investors and promoting high-impact standards aligned with those of DFIs and the European Union’s Sustainable Finance framework. Enabling the emergence of a secondary market in emerging markets will trigger a larger mobilisation of private capital as well as a more efficient allocation of resources.

The LPI initiative has been designed by two European investment funds:

• Octobre is a consortium set up in 2020 jointly by Cardano Development (NL), Innpact (Lux) and Octobre S.A.S (France), with the mission to bring innovative liquidity solutions to enable the mobilization of private capital at very large scale for Emerging Markets & Impact assets (“EM&I”).
• 2nd Aries Second Aries Capital BV (“2 nd Aries”) established in 2023 in The Netherlands, is a dedicated asset management company. The purpose is to provide solutions to emerging market investors by connecting private and public stakeholders.

The LPI initiative is closely aligned with one of the key enabling sectors of the Global Gateway strategy, which aims to strengthen the private sector by enhancing access to sustainable finance. By improving liquidity conditions in emerging markets, LPI will facilitate greater flows of private investment and help attract new private investors to the impact finance space, thereby supporting the mobilisation of capital for sustainable development.

Total EFSD+ Guarantee support

€ 216 million

Geographical focus: 

Sub- Saharan Africa, Asia, Pacific, the Middle East, Turkey and the European Neighbourhood East

Total EDFI financing mobilisation target 

€ 1.4 billion

Contact us 

LPI.guarantee@edfimc.eu