Investment committed by IFC totals $50 million for Victory Park Capital
The International Finance Corporation (IFC) has announced a significant move to expand credit access for micro, small, and medium enterprises (MSMEs) in emerging markets. The organisation has made a $50 million follow-on investment in Victory Park Capital Investor Fund W, LP, marking a continued commitment to financial inclusion.
This latest investment, coupled with an additional $50 million from IDB Invest in January 2025, pushes the Fund’s total commitments to over $200 million. The new capital will extend the Fund’s investment period through 2030, enabling Victory Park Capital (VPC) to continue providing debt financing to innovative fintech lenders that focus on financial inclusion in regions such as Latin America—particularly Mexico and Colombia—and other emerging markets.
VPC, a global alternative investment firm specializing in private credit and asset-backed lending, will leverage this funding to support the growth of next-generation financial platforms that deliver critical capital to underserved small businesses. These businesses are recognised as key drivers of local economies.
Gordon Watson, Partner at VPC, expressed pride in continuing the partnership with IFC. He emphasised that the investment will support fintech solutions that bring affordable credit where it's needed most, specifically targeting underserved small businesses across emerging markets.
The investment aligns with IFC's broader mission to promote responsible lending and economic resilience in emerging markets. IFC is also committed to providing technical assistance to strengthen VPC’s environmental, social, and governance (ESG) practices, including enhanced anti-money laundering protocols and the collection of gender-disaggregated data to foster more inclusive financial services.
Elizabeth Martínez de Marcano, IFC's Regional Director for Latin America and the Caribbean, emphasised the importance of MSMEs in regional economic growth and employment. She said, "This initiative supports IFC's strategy to enhance venture debt markets in emerging economies and promotes sustainable fintech lending models."
The partnership between IFC and VPC focuses on private credit and asset-backed lending in emerging markets. The investment aims to bridge the gap in finance access for MSMEs by supporting innovative fintech solutions. It is a strong endorsement of VPC's strategy to expand access to responsible credit.
This collaboration addresses significant barriers faced by MSMEs in accessing affordable credit, underlining IFC’s dedication to promoting financial inclusion and economic resilience in emerging markets.
The partnership between IFC and VPC aims to expand access to finance for MSMEs by supporting innovative fintech solutions, aligning with IFC's broader mission of promoting responsible lending and economic resilience in emerging markets. By leveraging the latest investment, VPC will provide critical capital to next-generation financial platforms that specialize in business lending, particularly in regions like Latin America and other emerging markets, contributing to the regions' economic growth and job creation.
