Yemisi Izuora
Emerging economies would soon begin to enjoy better opportunities to capital access as the International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector, and BlueOrchard Finance Ltd (BlueOrchard), a leading global impact investment manager and member of the Schroders Group, are working in concert to channel long-term institutional capital into emerging markets.
The idea is to helping create jobs and expand economic opportunity in regions where private investment has historically been difficult to mobilize.
The initiative is supported by a private debt investment vehicle which targets up to $2 billion in commitments, with Tokio Marine Group as the anchor investor in a $300 million first closing.
The investment vehicle is evergreen, allowing investors to subscribe and redeem on an ongoing basis while reinvesting capital into new investments to continuously recycle funds subject to predefined redemption windows. It is designed for private investors, including pension funds, insurers, and sovereign wealth funds, seeking long-term private credit exposure.
“Emerging markets need trillions of dollars to invest in their development—far more than public finance can supply,” said Makhtar Diop, IFC Managing Director. “This initiative with BlueOrchard and Tokio Marine Group creates a scalable way to connect institutional capital with businesses that create jobs, expand opportunities and improve lives in the places that need it the most.”
“Institutional investors are increasingly looking for long-term private credit opportunities that combine returns and diversification with access to emerging markets,” said Michael Wehrle, CEO of BlueOrchard. “With 25 years of experience investing across these markets and building diversified and resilient portfolios, we can provide that access at scale while directing capital to where it can have meaningful impact.”
IFC is delighted to launch this initiative with BlueOrchard and longstanding partner Tokio Marine Group, which has supported IFC’s efforts to mobilize private capital across emerging markets over many years.
“This investment marks a natural next step in Tokio Marine Group’s longstanding partnership with IFC. Combining IFC’s origination capabilities with BlueOrchard’s 25-year track record in managing diversified emerging market debt portfolios gives us access, at scale, to a segment of private credit that has traditionally been difficult for institutional investors to reach. We are pleased to deepen our collaboration with IFC and BlueOrchard through this investment. We are proud to bring our long-term institutional capital to this initiative, which will help support sustainable and resilient economic growth and create jobs in emerging markets,” said Masahiro Koike, Group CEO, Tokio Marine Holdings, Inc.
Emerging market debt fundamentals have strengthened significantly over the past two decades, supported by improved regulation, stronger governance, and declining default rates. Against this backdrop, the investment vehicle provides institutional investors with a timely and efficient way to deploy capital and scale exposure to emerging market credit.
The investment vehicle turns IFC’s Managed Co-Lending Portfolio Program (MCPP) into a next-gen model that caters to a broader investor base. Launched in 2013, MCPP is a flagship syndications platform with over $25.5 billion in capacity and enables partners to co-invest alongside IFC on commercial terms while gaining exposure to high-quality emerging market loans.