This debt fund will invest in small to medium-sized commercial infrastructure projects in emerging markets and developing economies (EMDEs). It will target a diversified portfolio of resilient infrastructure, including clean water and water management, waste management, energy, transportation, hospitals, digital infrastructure and other assets.
London: The Insurance Development Forum (IDF) has announced the successful launch of the Infrastructure Resilience Development Fund (IRDF).
The IRDF, managed by Global Infrastructure Partners (GIP), a part of BlackRock, is based on the Infrastructure Resilience Development Blueprint that IDF members including AXA, Convex, Generali, SCOR, Swiss Re and Zurich developed over the past two years. This blueprint was then refined through intensive collaboration between the IDF and BlackRock/GIP.
The innovative structure of the IRDF was designed specifically to meet the investment criteria of the insurance sector and similarly situated institutional investors, and to advance the goals of the IDF to close natural catastrophe protection gaps and build resilience to natural disasters for the most vulnerable communities in emerging markets and developing economies (EMDEs).
This debt fund will invest in small to medium-sized commercial infrastructure projects in EMDEs. It will target a diversified portfolio of resilient infrastructure, including clean water and water management, waste management, energy, transportation, hospitals, digital infrastructure and other assets. The fund allows investors to invest in a blended pool of senior and mezzanine debt and seeks to deliver exposure to attractive risk-adjusted returns and predictable cashflow, alongside positive, measurable social and environmental outcomes.
A first close of the fund raised USD $340 million, including a substantial commitment from the International Finance Corporation (IFC) and the IDF members who developed the fund blueprint. The fund has also authorized its first investment and has a pipeline of other potential projects. The fund expects to continue raising capital from insurers and other institutional investors into 2026.
Jean-Baptiste Tricot, Co-Chair of the IDF Infrastructure Working Group and Chief Investment Officer, AXA, “This project is an important step in unlocking investment in infrastructure projects in emerging markets and developing economies with an attractive risk-return profile. Having the ability to deploy capital supported by both private and public money through such blended funds is key for institutional investors and the IRDF is specifically tailored to the needs of institutional insurers and pension funds.”
“Our view is that the resilience theme is highly complementary to infrastructure and will allow for a broad range of investments across different sectors. On behalf of the IDF’s Infrastructure Working Group, we are very thankful to BlackRock for transforming our initial idea into an investable opportunity, with significant growth potential,” said Tricot.
Ekhosuehi Iyahen, Secretary General, IDF, said: “This successful first close in a challenging global environment is a confirmation of our commitment to drive greater mobilisation and more impactful insurance sector investment into a critical, underserved segment of the infrastructure market. It is a first step in what we view as a catalytic endeavour and built on the conviction that this is not only the right thing to do but it is also good for business. My appreciation to the Co-Chairs of the working group, the BlackRock team and investing LP’s for their support.”
Mohamed Gouled, Vice President of Industries at IFC, said: “Expanding access to reliable infrastructure is one of the most efficient and impactful ways to drive growth and job creation in emerging and developing economies. Through its investment in the Infrastructure Resilience Development Fund, IFC aims to crowd in long-term institutional investors such as insurance companies to finance projects that strengthen critical services, such as energy, transport, and digital connectivity, and support local businesses that create employment opportunities in the communities that need them most.”