Washington, D.C., July 2, 2014—IFC
Asset Management Company, a wholly owned subsidiary of the International
Finance Corporation (IFC), has raised approximately $418 million for the
IFC Catalyst Fund, which will invest in private equity funds and companies
focused on climate-related investments in emerging markets.
The fund's mandate is to provide attractive returns to its investors by
making equity investments, along with IFC, in a diversified portfolio of
funds and companies. It has commitments from eight investors, including
two private pension funds from Australia and Germany; the sovereign wealth
fund of Azerbaijan; the governments of the United Kingdom, Canada, and
Norway; the Japan Bank for International Cooperation; and IFC.
“Addressing climate change is a strategic priority for the World Bank
Group, and private equity is a catalytic way to initiate climate-friendly
investment in emerging markets,” said Gavin Wilson, CEO of IFC Asset Management
Company (AMC). “Private equity funds address the gap that companies face
in climate-related sectors and help them scale up efficient solutions and
business models. IFC’s extensive expertise in emerging markets and its
record of success in climate-related investments will provide a unique
pipeline of attractive investment opportunities for the fund.”
The fund gives investors access to IFC’s investment pipeline in selected
specialist investment funds focused on building companies and projects
in low-carbon power generation, energy and water efficiency, and resource
efficiency sectors more broadly. At the same time, the fund enhances IFC’s
investment activities in the climate sector, a critical issue for its member
countries. The fund is managed by an AMC team based in Washington, D.C.
The rapid growth of developing countries is increasing consumption of energy,
water, and other key resources—with significant implications for the environment.
Private equity and venture-capital funds are uniquely suited to financing
climate-related investments because they possess the expertise to back
innovative projects, support early-stage companies, and help such companies
improve their technical and operating capacity. The fund and its investors
will benefit from the growth of private equity in emerging markets focused
on these sectors.
IFC has invested more than $11 billion in some 600 climate-related projects
since 2005. IFC has an additional $400 million in commitments to
climate-related funds. The IFC Catalyst Fund has already made four commitments
to funds focused on climate-related investment—including in renewable
energy, cleantech, and industrial biotechnology, in Southeast Asia, China,
and Latin America.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise and
influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our new investment commitments climbed to an all-time high of
nearly $25 billion, leveraging the power of the private sector to create
jobs and tackle the world’s most pressing development challenges. For
more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns, as well as positive development
impact in the countries in which it invests. It manages $6.3 billion of
capital across six investment funds. For more information, visit www.ifcamc.org.
About the IFC Catalyst Fund
The IFC Catalyst Fund is a private equity fund of funds focused on providing
growth capital for companies delivering resource efficiency and low-emission
products and services in emerging markets.