Innovative Finance/

Zero Gap Fund

Through the Zero Gap Fund, the Foundation’s Innovative Finance team sources, funds, and develops innovative financial solutions that demonstrate the potential to catalyze large-scale private investment towards the Sustainable Development Goals (SDGs).
Overview

Higher Solution Investing

The Zero Gap Fund is an impact investing collaboration between The Rockefeller Foundation and the John D. and Catherine T. MacArthur Foundation. Its aim is to invest into new financing products and solutions to catalyze new capital to help meet the SDGs. Meeting global development imperatives like the SDGs requires moving mainstream sustainable investment into higher impact solutions.

The Zero Gap Fund focuses on scaling high-innovation financial mechanisms such as new securitizations, insurance products, and fund strategies to unlock new and additional private capital for impact. We take pioneering risk through catalytic capital investments, and help our investees attract the additional financing and traction required to reach scale and self-sufficiency.

 
  • $2.5trillion

    annual funding gap to implement the United Nations’ Sustainable Development Goals in emerging markets alone.

  • $193billion

    total annual net flows of catalytic capital

  • 12.5x

    leverage of global catalytic capital to private capital required to close the SDG funding gap

 
Our Approach

The Zero Gap Fund portfolio takes a truly flexible approach, with a multi-asset class, multi-sector, and global mandate that encourages investment in the most scalable and innovative solutions – wherever opportunities arise.

The Fund sources investments from a deep and diverse partner network across the private, public, and philanthropic sectors – and by leveraging expertise and opportunities developed in the Foundation’s Zero Gap grant portfolio. Initiated in 2015, and now comprising 50 grantees working across 28 countries, the grant portfolio incubates high-impact financial products from an early stage.

 

With both investments and grants, the Zero Gap initiative seeks to deliver positive social, economic, and environmental outcomes, while pushing the boundaries of impact investing to attract more private capital at scale.

  • The funding required to achieve the U.N.'s sustainable development goals substantially outstrips the financing capacity of the world's governments. The Rockefeller Foundation plays a catalytic role in supporting the kind of creative, financial structuring needed to attract private investment to fill that funding gap.
    Waide Warner
    Senior Research Fellow, IRI, Senior Counsel of Davis Polk & Wardwell, and President of the Post Road Foundation
Milestone Tracking

Our Goals

We aim to maximize impact by pursuing the highest leverage investments possible with catalytic dollars, and ensure measurable benefits through a tailored, expert-led approach to setting and achieving ambitious outcomes.

 
 
  • 15-17

    target investments in Zero Gap Fund

  • $4million

    average investment size

  • 17x

    private capital leverage target

Recent Updates

Apr 02 2020
Blueprint
Innovative Financing Bringing Together Range of Stakeholders and Investors to Get It Done
More
Sep 10 2020
Blog Post
Standing Firm Beside Underserved Women in Asia
More
Sep 13 2018
Blog Post
Collaborative Solutions: Using Technological Innovation to Benefit Humanity
More
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