Stockholm (NordSIP) – As climate change continues to beat temperature records, and at a time of increasing resistance to mitigation efforts, international financial cooperation is crucial. In this spirit, BlueOrchard, a global impact investment manager and member of the Schroders Group, has partnered with KfW, the German development bank, through the InsuResilience Investment Fund Private Equity (IIF PE II), a private equity fund for climate adaptation and resilience in emerging markets (EM).
On July 4th, BlueOrchard announced the second closing of its IIF PE II, with over US$50 million raised during this latest funding phase. According to BlueOrchard, IIF PE II aims to build resilience against climate change by investing in insurance companies that provide affordable climate risk insurance protection to vulnerable populations and small businesses. The IIF PE II fund was launched in September 2022 and builds on its predecessor, the 2017 IIF PE I, which invested in nine portfolio companies providing insurance cover to over 48 million beneficiaries in more than 45 countries (as of June 2023).
“We are delighted by the trust and continued strong interest from investors. The unique character of the strategy, which provides climate insurance solutions for the most vulnerable populations and businesses, is recognised. Investing in climate adaption is not only a climate investment imperative, but also a commercial opportunity,” said Felix Hermes, Head of Private Equity & Sustainable Infrastructure at BlueOrchard.
BlueOrchard highlights two investment cases: Singapore’s Igloo and Brazil’s Newe. Igloo is an insurtech company with operations in seven South and East Asian markets that has on average tripled its revenues each of the last three years. In the area of climate insurance, the firm is contributing to protecting smallholder farmers in the Philippines from natural disasters and has launched an innovative weather insurance product for farmers in Vietnam. Newe is a leader in agricultural insurance in Brazil, the agricultural powerhouse of Latin America. Together with IIF PE II, the firm is looking to extend agricultural insurance to the more than four million smallholder farmers in the country.
“We see a strong pipeline of opportunities for our strategy as the climate insurance ecosystem in our target markets enters the growth phase. Scalability and affordability of the offering, as well as technological expertise and operational excellence, are critical to succeed in this space. With our unique network and expertise, we are the partner of choice for many of the firms that excel in these areas,” said Martín Diaz Plata, Head of Private Equity Investments at BlueOrchard.