Washington D.C., January 27, 2012—
IFC, a member of the World Bank Group, and the UK government will invest in the IFC Climate Catalyst Fund LP, 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.
IFC's Board has approved an investment of up to $75 million in the fund. The UK government has approved an investment of £50 million from the UK’s International Climate Fund as part of its Climate Public-Private Partnership, or CP3, initiative.
The Climate Catalyst Fund will seek to assemble a diversified portfolio of private equity funds managed by established and emerging fund managers. It also intends to make direct co-investments in early and growth-stage companies that are developing innovative technologies and helping reduce climate change.
“Addressing climate change is a strategic priority for IFC, and private equity is well suited to jump start climate-friendly investment in emerging markets,” said Lars Thunell, IFC Executive Vice President and CEO. “We hope that the fund will help make the business case for these kinds of investments and encourage additional private sector investment into innovative climate projects.”
The United Kingdom’s International Development Secretary Andrew Mitchell said: "For too long the power of the private sector has been forgotten in the fight against global challenges. Climate change affects us all—but it will hit the poorest the hardest. Our support will reduce the risk of investing, helping the private sector to tackle this global problem by investing in some of the fastest growing economies in the world.”
IFC provides investments and advisory services to businesses in the renewable energy and resource efficiency sectors, including across the supply chain, throughout emerging markets. Since fiscal 2005, IFC has invested in over 340 such projects in about 70 countries, committing a total of $11.6 billion, including $1.6 billion in fiscal 2011 alone.
IFC has supported emerging-market private equity funds for over two decades. Since 2000, IFC has invested over $2 billion in more than 120 private equity funds. IFC has approved investments in 12 climate-focused private equity funds, for an aggregate of $225 million. All the funds in which IFC invests adhere to IFC’s environmental and social standards, helping extend market-leading governance and sustainability practices.
Since 2007, over half the investment funds supported by IFC have been in the world’s poorest countries and 65% of the companies IFC has supported have been small businesses, many of which employ significant numbers of women.
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit