BlueOrchard, the impact investment division of Schroders Group, has launched a new fund with the aim of making climate insurance affordable and accessible in developing countries.
The InsuResilience Investment Fund Private Equity II (IIF PE II) will invest in Asian, African and Latin American companies active in the climate insurance value chain, including insurers, reinsurers, aggregators and technology companies.
With a target of $100m in assets under management, the fund will look to invest in companies that can ‘disrupt, scale and improve’ the resilience of people and small businesses in emerging markets to extreme weather events and natural disasters.
As well as equity, the fund will provide technical assistance and support to partner companies.
IIF PE II has already received backing from private sector investors and is supported by the German development bank KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development, as was the case for similar fund launched in 2017.
BlueOrchard CEO Philipp Mueller said: ‘With the support of our partner KfW, we can now build on the success of the first fund and launch this complementary fund.
‘It is great to see that this blended finance initiative, which mobilizes capital from the public and private sectors to benefit people and the planet, continues to thrive.’
The first IIF, which closed in June 2020, raised $80m from public and private investors. It made nine equity investments in eight countries and, together with its twin debt arm, had reached more than 40m climate insurance beneficiaries in 26 countries as of June 2022.
Structured as a public-private partnership, it attracted investment from public and private sector investors such as the European Investment Bank and the Soros Economic Development Fund.
The two funds are the only ones within the G20 Global Partnership for InsuResilience, which invest private capital in private sector companies to increase the supply of commercial insurance in developing countries.
The G20 GPI aims to protect more than 500m vulnerable people in developing countries against the effects of climate change.