BlueOrchard holds final closing of USD80m IIF Private Equity Sub-Fund
Swiss impact investment manager BlueOrchard Finance Ltd (BlueOrchard) has held the final close of the InsuResilience Investment Fund (IIF) Private Equity Sub-Fund, an 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, says: “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, says: “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, says: “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.”