Regulation: Germany's new impact fund regime

In a broader government initiative to make Germany a more attractive domicile for investments funds, the German legislator has introduced a regime designed to promote the formation of development impact funds (Entwicklungsförderungsfonds, or EF-Funds), which will come into force on August 2, 2021.EF-Funds represent a step change for German development impact managers and their ability to raise capital globally. The political force behind this initiative is matched by significant financial clout – Germany’s development assistance budget exceeds circa €10 billion per annum.