Stockholm (HedgeNordic) – BlueOrchard’s private equity fund dedicated to climate insurance has secured commitments of close to $30 million from two new investors, British International Investment and the Nordic Development Fund. With just under $10 million shy of its $100 million target size, the InsuResilience Investment Fund Private Equity II aims to improve access to climate insurance in emerging markets in Africa, South and South-East Asia, and Latin America.

BlueOrchard, an impact investment manager under the Schroders Group, secured a commitment of $15 million from British International Investment (BII), the UK’s development finance institution and impact investor, along with $13.5 million from the Nordic Development Fund (NDF). These investments bring the total committed capital for BlueOrchard’s private equity fund to over $90 million, edging close to its target size of $100 million. BII has previously supported two BlueOrchard funds, including an education finance fund for Africa and a Covid-19 recovery fund for micro, small, and medium-sized enterprises (MSMEs) in emerging markets. The collaboration with NDF marks the start of a new partnership between NDF and BlueOrchard.

“As the UK’s DFI, we are delighted to partner with BlueOrchard and join like-minded investors to support the development of innovative and improved climate insurance products and address market challenges.”

Jo Fry, Investment Director and Head of Intermediated Financial Services at BII

“Four out of five businesses in emerging economies have been impacted by the climate emergency, according to our annual Emerging Economies Climate Report this year,” notes Jo Fry, Investment Director and Head of Intermediated Financial Services at BII. “As the UK’s DFI, we are delighted to partner with BlueOrchard and join like-minded investors to support the development of innovative and improved climate insurance products and address market challenges,” Fry continues. Satu Santala, Managing Director of NDF, further emphasizes that “Climate insurance can provide concrete solutions to the disastrous consequences of climate change and the people and businesses affected by it. We are proud as NDF to partner with BlueOrchard, invest in InsuResilience Investment Fund II and be part of making positive change in the regions where this is needed the most.”

“We are proud as NDF to partner with BlueOrchard, invest in InsuResilience Investment Fund II and be part of making positive change in the regions where this is needed the most.”

Satu Santala, Managing Director of NDF

The InsuResilience Investment Fund Private Equity II represents a joint initiative between BlueOrchard and the German development bank KfW. Its primary objective is to protect vulnerable people and micro-entrepreneurs in emerging markets from the impacts of climate change by facilitating access to climate insurance. Building upon the success of its predecessor, the fund works on establishing an ecosystem that facilitates this access. Both funds have invested in 13 companies, reaching over 70 million climate insurance beneficiaries in emerging markets. The fund makes direct investments, prioritizing business models that focus on climate insurance solutions for underserved communities, with a specific emphasis on parametric climate insurance and insurtech.