Catalytic Capital | April 24, 2023

BlueOrchard’s Green Earth Impact Fund secures $25 million from Luxembourg’s ministry of finance

Jessica Pothering and Roodgally Senatus
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, April 24 – Luxembourg’s ministry of finance has committed $25 million to BlueOrchard Finance’s Green Earth Impact Fund, which seeks to raise $250 million to invest in private equity, debt and real assets funds focused on climate adaptation and mitigation, water protection, and biodiversity in emerging markets.

The commitment includes a layer of first-loss capital. “As we face unprecedented environmental challenges, it is essential that we take bold action to protect our planet and ensure a sustainable future for all,” said the ministry’s Yuriko Backes.

BlueOrchard launched the fund of funds last year with its parent company Schroders to offer investors “the opportunity to invest in climate action and biodiversity in growth markets, contributing to the protection of vulnerable communities and a just transition,” said BlueOrchard’s Phillip Mueller

Strategic partnerships

Blue Orchard will manage the fund’s investments; Schroders will provide risk and portfolio services. Schroders acquired a majority stake in BlueOrchard in 2019. “Our joint focus will now move onto capital raising in Luxembourg, across Europe and other international markets,” Schroders’ Finbarr Browne said.