India-based private debt fund manager Northern Arc Investments Managers (NAIM) said on December 22 that it had raised Rs 650 crore for the Belgian Investment Corporation(BIO) for Developing Countries, a member of EDFI (European Development Finance Institution). BIO invested these funds in NAIM’s eighth fund, the Northern Arc Impact India Fund (NAIIF).

The company said it would use the new fund to support and address funding gaps for Impact Enterprises (IEs) through “simple, reliable and sustainable” funding channels.

The new fund, NAIIF, is a Tier 2 Alternative Investment Fund (AIF) registered with SEBI. The company said it had raised a total of Rs 700 crore from investors, including domestic and international development finance institutions, companies with global reach, domestic financial institutions, banks, corporate treasury arms and domestic and global family offices.

According to the company, key investors participating in the first closing included global impact investment firm Blue Earth Capital, asset management and investment advisory services firm Anthos Fund & Asset Management from the Netherlands, and US-based institutional impact investor Calvert Impact Capital.

NAIIF said it exercised the greenshoe option for an additional Rs 350 crore. It added that it had allocated 30 impact-focused thematic investments, including financial inclusion, agritech and climate technology.