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Soros Economic Development Fund

Annual Giving
$7.9M
Grant Range
$1000K - $25.0M

Soros Economic Development Fund

Quick Stats

  • Total Assets: $174.9M (2024)
  • Annual Investment Activity: $7.9M in disbursements (2024)
  • Total Portfolio: $395M+ committed across 38+ investments
  • Investment Range: $1M - $25M (typical $5-15M)
  • Geographic Focus: 92% in fragile, frontier, and emerging markets (60+ countries)
  • Investment Type: Program-Related Investments (debt, equity, guarantees)

Contact Details

Address: 224 West 57th Street, 9th Floor, New York, NY 10019

Website: www.soroseconomicdevelopmentfund.org

Contact Page: soroseconomicdevelopmentfund.org/contact

Overview

Founded in 1997, the Soros Economic Development Fund (SEDF) is the impact investment arm of the Open Society Foundations with total assets of $174.9 million. Since inception, SEDF has committed over $569 million in debt, equity, and guarantees to businesses, funds, platforms, and nonprofits across geographies and sectors. The fund's mission is to "harness the power of private capital to pursue rights-respecting, justice-enhancing, systemic change" in support of vibrant and inclusive democracies globally. Unlike traditional grantmakers, SEDF operates through program-related investments (PRIs) including loans, loan guarantees, equity investments, and deposits designed to alleviate poverty, foster economic development, and spur job creation in economically devastated areas. Under CEO Georgia Levenson Keohane's leadership since November 2022, SEDF has sharpened its focus on impact-first investing, prioritizing mission alignment over financial returns and deploying patient, risk-tolerant capital where traditional investors hesitate.

Funding Priorities

Investment Approach

SEDF deploys debt, equity, and guarantees through both direct investments and indirect investments via fund managers. The fund possesses "significant flexibility to design creative financing instruments to meet the needs of our investees." Investment sizes typically range from $5-15 million, though investments have been made as small as $1 million and as large as $25 million or more.

Priority Themes

  • Climate and Inclusive Development: Clean energy access, climate resilience, green infrastructure, sustainable agriculture
  • Independent Media: Supporting journalism and media freedom
  • Justice and Human Rights: Democratic practice, racial justice, gender equity
  • Health Equity: Vaccine access, biomanufacturing, medical supplies, overdose prevention
  • Economic and Financial Inclusion: SME financing, microfinance, affordable housing

Investment Types

  • Direct equity investments in social enterprises
  • Debt financing (loans and credit facilities)
  • Loan guarantees and credit enhancements
  • Deposits in community financial institutions
  • Fund-of-funds investments in impact-focused investment vehicles

What They Don't Fund

SEDF focuses exclusively on impact investments structured as PRIs. They do not make traditional grants or support projects that cannot accommodate investment structures requiring some form of financial return or repayment.

Governance and Leadership

Georgia Levenson Keohane - Chief Executive Officer (since November 2022) Georgia is a leading proponent of responsible investment strategies for social and environmental impact with over twenty years of leadership experience. She has stated that SEDF "works in mission investing, offering risk-tolerant capital that leads with impact over financial returns and seeks to attract other investors to mission-focused causes." She emphasizes that while impact investing is often defined as generating both impact and financial returns, SEDF's origins reflect "a field that is willing to trade financial returns for impact."

Catherine Cax - Managing Director, Investments

Lily Han - Head of Policy and Innovative Finance

Nicole Stallworth - General Counsel

James Beaver - Director of Finance

The SEDF board of directors comprises senior Open Society Foundations employees, ensuring alignment between investment strategy and the broader Open Society mission.

Application Process & Timeline

How to Apply

SEDF does not have a public application process. Investments are identified through the organization's strategic relationships, partnerships with the Open Society Foundations' program staff, and proactive deal sourcing by the investment team. The fund operates on an invitation-only basis for investment opportunities.

While the organization's website includes a contact form, there is no published process for submitting unsolicited investment proposals or specific eligibility criteria for potential investees. Investment decisions appear to be driven by strategic alignment with Open Society Foundations' priorities and identification through existing networks.

Getting on Their Radar

Note: The following represents specific intelligence about SEDF's approach:

  • Open Society Foundations Network: SEDF works closely with Open Society Foundations program staff across various thematic areas. Organizations already engaged with OSF programs in climate, media, justice, or human rights may have better positioning for SEDF consideration.

  • Impact Investing Ecosystem: SEDF is an active member of the Global Impact Investing Network (GIIN) and participates in impact investing convenings and platforms. Organizations with visibility in this ecosystem may attract SEDF's attention.

  • Blended Finance Structures: SEDF has shown willingness to participate in blended finance transactions where they take first-loss positions to attract more commercial capital. Organizations developing such structures may find SEDF receptive.

  • Geographic Focus on Global South: SEDF has publicly stated their commitment to deploying capital to Africa and other emerging markets where traditional investors hesitate. Organizations with strong impact thesis in these regions align with stated priorities.

Decision Timeline

No public information is available regarding typical decision timelines from initial contact to investment closing.

Investment Structure Negotiation

Given SEDF's stated "significant flexibility to design creative financing instruments," the investment structuring process likely varies considerably based on investee needs and risk profile.

Application Success Factors

Since SEDF does not accept applications, success factors relate to strategic positioning and alignment:

Mission Alignment is Paramount CEO Georgia Levenson Keohane has emphasized that SEDF "leads with impact over financial returns." Organizations must demonstrate clear alignment with Open Society's core values of equity, expression, and justice. As Keohane noted, SEDF is "willing to trade financial returns for impact," meaning the social impact thesis must be compelling even if financial returns are modest.

Geographic Focus on High-Risk Markets SEDF has committed to deploying capital where "more traditional investors may hesitate due to country-specific risks." Their portfolio shows 92% of investments in fragile, frontier, and emerging markets. Organizations operating in these contexts should emphasize how SEDF's risk tolerance enables impact that wouldn't otherwise occur.

Catalytic Capital Strategy Recent investments demonstrate SEDF's willingness to use their capital catalytically. In climate investments, they've taken "first-loss positions in blended capital stacks, encouraging more commercial partners to come on board." Organizations that can articulate how SEDF's investment will unlock additional capital may be particularly attractive.

Partnership Principles Keohane has stated that SEDF's approach is "rooted in the principles of partnership." This suggests they seek long-term, collaborative relationships rather than transactional investments.

Recent Investment Examples Show Preferences

  • Allied Climate Partners ($25M, 2024): Public-private partnerships for climate finance in emerging markets
  • Acumen Hardest-to-Reach Initiative ($15M): Clean energy access for 70 million low-income customers in Africa
  • Amazon Biodiversity Fund ($15M, 2023): Sustainable businesses preserving standing forest in Brazil
  • Remedy Alliance ($1M, 2024): Nonprofit addressing U.S. overdose crisis through naloxone access
  • Alliance for Green Infrastructure in Africa ($10M): Africa-led climate resilience infrastructure

Flexibility in Investment Structure SEDF has demonstrated willingness to invest across the capital stack—from equity to debt to guarantees—and to work with both for-profit social enterprises and nonprofits. Organizations should be prepared to discuss various structural possibilities.

Alignment with Current Priorities Based on recent investments and leadership statements, current priorities appear to include: climate action in Africa, independent media support, health equity, racial justice, and democratic resilience.

Key Takeaways for Grant Writers

  • SEDF is an impact investor, not a traditional grantmaker: Organizations must be able to accommodate investment structures (equity, loans, guarantees) rather than seeking charitable grants
  • No public application process: Investments are sourced through strategic relationships, OSF network connections, and proactive deal identification by SEDF staff
  • Impact-first philosophy: SEDF explicitly prioritizes social impact over financial returns, offering risk-tolerant capital that traditional investors won't provide
  • Geographic sweet spot: 92% of portfolio is in fragile, frontier, and emerging markets—organizations in these regions with strong impact thesis are well-positioned
  • Catalytic capital approach: SEDF values opportunities where their investment unlocks additional capital through blended finance or first-loss positions
  • Investment size flexibility: While typical range is $5-15M, SEDF has made investments from $1M to $25M, showing adaptability to opportunity size
  • Thematic alignment essential: Current priorities emphasize climate action, independent media, justice and human rights, health equity, and economic inclusion—organizations outside these areas unlikely to attract interest

References

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