BlueOrchard announces USD 80 million final closing of the IIF Private Equity Sub-Fund
Zurich, 29 July 2020 – Swiss impact investment manager BlueOrchard Finance Ltd (BlueOrchard) is announcing the final close of the InsuResilience Investment Fund (IIF) Private Equity Sub-Fund, a first of its kind initiative to improve access to climate insurance across the developing world. The fund has already made six investments across emerging markets, helping to protect more than 20 million poor and vulnerable people from the effects of climate change.
IIF is the only G20 Initiative on Climate Risk Insurance investing private capital in private sector companies to increase commercial insurance offerings. The G20 InsuResilience Global Partnership aims to protect more than 500 million vulnerable people in developing countries against the impacts of climate change. IIF, managed by BlueOrchard, was initiated by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The IIF Private Equity Sub-Fund invests in companies across the climate insurance value chain. Together with its portfolio companies and those in the Debt Sub-Fund, the fund is pioneering the development and distribution of micro and meso insurance products against extreme weather events and natural disasters. Through its portfolio of established companies and innovative ventures, IIF is making strong progress towards its impact and return focused goals. The value of IIF investments is further enhanced by designated technical and premium support funding.
IIF is a prime example of a successful blended finance strategy. The fund is structured as a public-private partnership and has attracted investments from established investors in both the public and private sectors, including the European Investment Bank and Soros Economic Development Fund.
Philipp Müller, Chief Executive Officer at BlueOrchard, said: “Small entrepreneurs and farmers are the backbone of food security in the developing world and are most affected by extreme weather events. Climate risk insurance provides much-needed liquidity in the aftermath of extreme weather events. We are proud to be part of this global initiative and look forward to improving access to climate and disaster risk insurance in markets that need it most.”
Felix Hermes, Head of Private Equity and Sustainable Infrastructure at BlueOrchard, said: “This is a significant milestone for the fund. We have a clear strategy of supporting entrepreneurs in emerging and frontier markets, and we are dedicated to building resilience to the impacts of climate change. We are excited to see the enthusiasm from investors and look forward to partnering with them to advance these important objectives.”
Stefan Hirche, Principal Portfolio Manager at KfW, said: “We are pleased to see how this initiative has grown very successful in delivering on its impact objectives as well as in leveraging public capital by attracting private investors. We are happy to have partnered with BlueOrchard to drive the initiative. BlueOrchard’s deep experience in emerging and frontier markets and their strong network of relationships have been critical in scaling up this initiative.”
About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and a member of the Schroders group. The firm is dedicated to fostering inclusive and climate-smart growth in emerging and frontier markets, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. The firm has built a distinct track record in offering premium impact investment solutions, including credit, private equity, and sustainable infrastructure. Being an expert in innovative blended finance mandates, the firm is a trusted partner of leading global development finance institutions. BlueOrchard has invested to date more than USD 7bn for sophisticated global private and public clients, enabling tangible social and environmental impact. For additional information, please visit: www.blueorchard.com.
About the InsuResilience Investment Fund
Luxembourg-based InsuResilience Investment Fund has been set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of the InsuResilience Investment Fund is to contribute to the adaptation to climate change by improving access to and the use of insurance in developing countries. The specific objective of the fund is to reduce the vulnerability of low-income households and micro, small and medium enterprises (MSME) to extreme weather events. The InsuResilience Investment Fund has been set up as a public-private-partnership for qualified investors and combines private debt and equity investments in two separately investible sub-funds as well as technical assistance and premium support. The fund aims at both financial return and social impact. For further information, please visit: www.insuresilienceinvestment.fund
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