Context
Mobilising private capital is essential for advancing the Sustainable Development Goals (SDGs) and helping to bridge the investment gap in emerging markets and developing economies (EMDEs).
Development Finance Institutions (DFIs) and institutional investors are increasingly originating long-term projects with the private sector through a diverse pool of financial instruments. However, the mobilization capacity of DFIs is limited and growing at a slower pace than needed to achieve the SDG agenda.
Scope of work
The ILX Fund seeks to unlock private capital while minimising or mitigating any potential Environmental, Social and Governance (ESG) risk. With support from the IMPACT Programme, the fund will develop a new scalable model of intermediation to allow European institutional investors, such as pension funds and insurance companies, to channel private capital towards SDG-focused private sector projects in EMDEs through:
- An investment strategy that focuses on building a portfolio of participation in syndicated and development finance institution (DFI)-originated loan facilities across a range of geographies and industries; and
- A sustainability strategy built on longstanding ESG safeguarding practices and existing standardised impact frameworks and methodologies to create a lean, practical framework that enables DFIs and institutional investors to report on impact in a uniform way.
