REDI Fund

REDI FUND is a social investment fund which facilitates access to finance for Roma entrepreneurs across Europe and the Balkans. REDI Team has already attracted 25% of the capital and is now in the negotiating process with several large social development funds.

REDI FUND responds to the needs of Roma entrepreneurs who are currently finding it difficult to secure funding to develop their businesses.

Its investment strategy will initially focus on providing debt capital and risk sharing mechanisms to local financial intermediaries (microfinance institutions and banks), bringing them adapted resources and incentives to support Roma entrepreneurs. In the second phase, REDI Fund aims to work directly with Roma entrepreneurs.

1) Skills and infrastructure development – The REDI Team facilitates the community outreach, identifies potential eligible entrepreneurs, builds their know-how and skills, and builds local human resource of other stakeholders supporting Roma entrepreneurs locally (business facilitators, loan officers, risk officers etc.). The basic core costs of REDI is already successfully fundraised in order to develop resources to provide skills and develop infrastructure.

2) Investment – REDI aims to establish its own investment fund in 2019 as an ad-hoc financial vehicle to respond to the lack of local financing opportunities for Roma entrepreneurs. The REDI Fund will provide debt capital and other mechanisms to local financial intermediaries (microfinance institutions and banks), bringing them adapted resources and incentives to support Roma entrepreneurs.

3) Investment Capacity – REDI Fund is expected to reach 5M EUR after the first closure. REDI has already a commitment for a million EUR as a first loss guarantee and an additional 175,000 EUR for technical assistance, fund registration and additional fundraising for the REDI NGO. Using this support, REDI NGO is a strategic holder of 25% equity shares and has started looking for other investors. The initial commitment not only has a pivotal role for REDI operations but it serves as an encouragement to other investors to join the initiative.

4) Sustainability – The technical assistance from the REDI Team will help secure the portfolio and build common understanding between the Roma entrepreneurs and the financial institutions.