From contract review to full-service legal support for Cordaid Investment Management

Wanted: an innovative partner who is capable of adapting with an organisation in transition.

Cordaid Investment Management stands out for its dedication to impact investing, aiming to create positive social change in vulnerable communities worldwide. By investing in developing markets, CIM has helped to fuel economic growth and empowerment across underserved regions.

Challenge 1: keep a grip on a dynamic loans’ portfolio
Call it a problem born of success, but managing a vast portfolio of loan agreements alongside ambitious investment plans was becoming harder and harder, especially given CIM’s limited internal legal resources and the unpredictability of investment schedules. The firm needed a tailored legal solution that could respond in line with its investment activities.

Solution 1: flexible contract review support
CIM approached Legadex. The firm had heard about our innovative approach of combining skilled legal staff with smart business processes and the latest technology. We ticked all the CIM boxes: enhanced delivery, efficiency and quality.

The initial request was to provide CIM with overflow support for contract review. This would enable the firm to pursue its investment agenda without being constrained by internal resources. Specifically, we helped draft and review loan agreements and the related documentation and checked whether condition precedents for disbursement had been fulfilled.

Having Legadex on board meant CIM was able to scale its legal resources in line with its investment activities. The inhouse legal team could feel confident of always being able to respond quickly and without having to worry about finding the resources to do so. They could count on Legadex and our dedicated team of multilingual lawyers to support CIM’s global operations.

Challenge 2: support CIM’ transition to a new strategy
Then, as things do, everything changed, as CIM decided to wind down its activities. It would concentrate on supporting its existing investees but cease to take on new ones. The organisation had concluded that, after 25 years, its investment programme had fulfilled its purpose of catalysing economic growth and empowerment in underserved regions and paving the way for other investors in impact investing.

Solution 2: switch to full-service legal support
This strategic shift affected Legadex, too, as CIM asked us to reconfigure our role to move from overflow support to full-service legal assistance. This would mean addressing all contract-related issues arising during this pivotal period. Of course, we said yes, and today, we ensure compliance and strategic alignment during this ongoing operational wind-down.

Results: flexibility to switch roles
For CIM, working with Legadex helped it to pursue its investment objectives. Later, when the strategy changed, we were able to support the organisation in safeguarding it interests and impact-investing legacy.

The collaboration between CIM and Legadex highlights the added value that comes from choosing a legal partner who offers multiple solutions. Our adaptability, expertise and breadth of services meant that when CIM decided to pursue a new strategic path, we could support them in that, too.