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IFC raises $280m for global climate change fund-of-funds

  • Alvina Yuen
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International Finance Corporation (IFC), the private investment arm of the World Bank, has received $280 million from the governments of Canada and the UK and Azerbaijan’s sovereign wealth fund for its climate change fund-of-funds.

IFC is contributing $75 million to the vehicle, which will invest in private equity and venture capital funds that provide growth capital to companies developing innovative ways to address climate change. A portion of the capital will be channeled through direct investments.

"Addressing climate change is a strategic priority for IFC, and private equity is well suited to jumpstart climate-friendly investment in emerging markets," said IFC CEO Jin-Yong Cai in a statement. "The Catalyst Fund represents a concrete step forward in mobilizing commercial finance for climate. It will encourage additional private sector investment into climate projects in emerging markets."

In the 2012 fiscal year alone, IFC invested more than $1.6 billion in climate-related projects. The private investment manager currently has a portfolio of $3 billion in more than 180 private equity funds, with $340 million in 17 climate-focused vehicles.

Last year, IFC invested $20 million to Nereus Capital's $250 million clean energy fund. The fund is based in Mauritius and will make 7-10 investments worth $15-25 million each.

 

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