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IFC Catalyst Fund Mobilizes $280 Million to Spur Climate Investment by Private Equity Funds


In Washington, D.C.:
John McNally
Phone: (202) 458-0723
E-mail:
jmcnally@ifc.org


Washington, D.C., January 25, 2013—IFC, a member of the World Bank Group, the governments of Canada and the United Kingdom, and the sovereign wealth fund of Azerbaijan have invested about $280 million in the IFC Catalyst Fund, which will invest in funds that provide growth capital to companies developing innovative ways to address climate change, and invest directly in those companies.

IFC is contributing $75 million to the fund. The fund will provide investors with exposure to a diversified portfolio of private equity funds managed by established and emerging fund managers. It will also offer investors the ability to invest at scale in fast-growing resource-efficiency sectors across emerging markets.

“Addressing climate change is a strategic priority for IFC, and private equity is well suited to jumpstart climate-friendly investment in emerging markets,” said Jin-Yong Cai, IFC EVP and CEO. “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.”

IFC incorporates climate change into virtually every aspect of its business. In fiscal year 2012 alone, IFC invested more than $1.6 billion in climate-related projects.

Private-equity and venture-capital funds are uniquely suited to financing climate-related investments because they tend to back innovative projects, support early-stage companies, and help such companies improve their business and technical capacity. These funds are expected to provide only a small part of the estimated $4.6 trillion in climate investment needed worldwide, but they can fill a key niche in emerging markets.

IFC has supported emerging-market private equity funds for over two decades. IFC has a portfolio of $3 billion in more than 180 private equity funds—including about $340 million in 17 climate-focused private equity funds. All the funds in which IFC invests adhere to IFC’s environmental and social standards, which help expand the use of best practices in corporate governance and sustainability.

About IFC

IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org.

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