Investment will Accelerate Firm’s Strategic Growth & Launch of Private Debt Impact Funds
London, United Kingdom, May 4th, 2021 – Acre Impact Capital, an impact-focused investment manager, announced today the closing of a catalytic capital investment from The Rockefeller Foundation and the Private Infrastructure Development Group (PIDG), through its company GuarantCo. The investment will accelerate Acre Impact Capital’s strategic growth plans and support the launch of a number of private debt impact funds focused on the export finance market.
Acre Impact Capital invests in growth-stage, climate-aligned infrastructure in emerging markets by partnering with leading commercial lenders and export credit agencies (ECAs). The firm provides underserved communities in Africa access to essential services, through its investments in infrastructure sectors such as healthcare, education, social housing, transport, renewable power, agriculture, water and sanitation, waste management, climate adaptation, and technology/digital infrastructure. By investing alongside long-established ECAs, Acre Impact Capital aims to achieve risk-adjusted market-rate returns, while minimizing risks often associated with developing infrastructure in emerging markets.
“We are thrilled to enter into a long-term partnership with aligned investors such as The Rockefeller Foundation and PIDG to advance Acre Impact Capital’s mission to provide access to essential services to underserved communities and contribute to reducing the infrastructure financing gap in Africa, which is estimated to be over $100 billion every year,” said Hussein Sefian, Founding Partner at Acre Impact Capital. “Our funds invest in a commercial loan tranche of approximately 15% of each transaction, which needs to be in place before an ECA can provide a guarantee on the remaining 85% of the debt. Lack of bank funding on this commercial tranche – which has worsened since the beginning of the COVID-19 pandemic – prevents the completion of many otherwise bankable transactions. By providing funding for this tranche, our funds will unlock transactions, mobilise up to $5.6 of private sector capital for each dollar invested and provide institutional and impact investors with exposure to a new asset class: export finance loans.”
“This transaction is a great example of complementary public sector and philanthropic partnership joining forces to work together towards a common goal and where blended finance can mobilise commercial sources of finance to support the SDGs. It demonstrates the strength of the PIDG group working closely together with The Rockefeller Foundation in order to deliver essential infrastructure to drive economic growth and sustainably build a more prosperous future for people in Africa who need it most”, said Lasitha Perera, CEO at GuarantCo.
“We are delighted to have been associated with the Acre Impact Capital project since its inception and to have supported the team in the development of such an innovative concept together with our friends at The Rockefeller Foundation. Through the use of PIDG Technical Assistance funding, we are proud to have been able to contribute to the initial capital required to enable Acre Impact Capital to be launched which demonstrates the power of strong partnerships and collaboration in delivering sustainable infrastructure in the countries where we can make a real difference” said Emilio Cattaneo, Director at PIDG Technical Assistance.
“We are excited about the potential of Acre Impact Capital high impact and innovative strategy, which leverages the ECA market to mobilise largescale capital and address the huge financing gap for emerging market infrastructure”, said Maria Kozloski, Senior Vice President of Innovative Finance at The Rockefeller Foundation.
PIDG’s investment is made through GuarantCo and is supported by PIDG Technical Assistance (TA) funding PIDG TA provides technical assistance and capital grants to the PIDG companies to support their activities and meet a range of needs associated with an infrastructure project’s life-cycle.
About Acre Impact Capital
Founded in 2019, Acre Impact Capital invests in growth-stage, climate-aligned infrastructure in emerging markets by partnering with leading commercial lenders and export credit agencies. Our Export Finance funds address the estimated $100 billion annual infrastructure financing gap in Africa, driving economic growth and providing essential services for underserved populations.
By co-investing alongside well-established export credit agency partners, we aim to achieve risk-adjusted market-rate returns for our investors while mobilising up to 5.6x private sector capital for every dollar invested. Our strong relationships and partnerships with key players in the export finance ecosystem provide us with privileged access to a diverse pool of curated opportunities across Africa. To find out more, visit: www.acre.capital
About The Rockefeller Foundation
The Rockefeller Foundation advances new frontiers of science, data, and innovation to solve global challenges related to health, food, power, and economic mobility. As a science-driven philanthropy focused on building collaborative relationships with partners and grantees, The Rockefeller Foundation seeks to inspire and foster large-scale human impact that promotes the well-being of humanity throughout the world by identifying and accelerating breakthrough solutions, ideas, and conversations. For more information, sign up for our newsletter at rockefellerfoundation.org and follow us on Twitter @RockefellerFdn.
Since 2005, GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, and France through a stand-by facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development. www.guarantco.com
About The Private Infrastructure Development Group (PIDG)
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure development and finance organisation which encourages and mobilises private investment in pioneering infrastructure in the frontier markets of sub-Saharan Africa and south and south-east Asia to promote economic development and combat poverty. PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 157 infrastructure projects to financial close and provided 209 million people with access to new or improved infrastructure. PIDG is funded by six governments (the UK, the Netherlands, Switzerland, Australia, Sweden, Germany) and the IFC. PIDG TA can provide technical assistance and capital grants to the PIDG companies to meet a range of needs associated with an infrastructure project’s life-cycle. PIDG TA can also provide up-front viability gap funding grants to support PIDG projects that require concessional funding to make a project with strong development impact financeable. To find out more visit: www.pidg.org
Marjolein van Kampen
+44 (0)738 8857097
Head of Communications
+44 (0) 7917 302724
Acre Impact Capital