Impact Investor BlueOrchard, IFC Partner to Invest $2 Billion in Emerging Markets

World Bank Group member the International Finance Corporation (IFC) and global investment firm Schroders’ impact investment management arm BlueOrchard announced a new partnership, aimed at channeling long-term institutional capital into underserved emerging economies, with the launch of a new private debt investment vehicle targeting up to $2 billion in commitments.

According to the companies, emerging market debt fundamentals have strengthened significantly over the past two decades, supported by improved regulation, stronger governance, and declining default rates.

The companies added that the new fund will expand access to the emerging markets private debt market, helping to create jobs and expand economic opportunity in regions where private investment has historically been difficult to mobilize.

Michael Wehrle, CEO of BlueOrchard, said:

“Institutional investors are increasingly looking for long-term private credit opportunities that combine returns and diversification with access to emerging markets. With 25 years of experience investing across these markets and building diversified and resilient portfolios, we can provide that access at scale while directing capital to where it can have meaningful impact.”

The initiative has secured $300 million at its first closing, with global insurance company Tokio Marine Group serving as the anchor investor.

Masahiro Koike, Group CEO, Tokio Marine Holdings, said:

“This investment marks a natural next step in Tokio Marine Group’s longstanding partnership with IFC. Combining IFC’s origination capabilities with BlueOrchard’s 25-year track record in managing diversified emerging market debt portfolios gives us access, at scale, to a segment of private credit that has traditionally been difficult for institutional investors to reach.”

According to the companies, the investment vehicle builds on IFC’s Managed Co-Lending Portfolio Program (MCPP), which enables institutional investors to co-invest alongside IFC in emerging-market loans.  The new vehicle uses an evergreen structure, which allows investors to subscribe and redeem during specified windows, while recycling capital into new investments. It is designed for private investors, including pension funds, insurers, and sovereign wealth funds, seeking long-term private credit exposure.

Makhtar Diop, IFC Managing Director, said:

“Emerging markets need trillions of dollars to invest in their development—far more than public finance can supply. This initiative with BlueOrchard and Tokio Marine Group creates a scalable way to connect institutional capital with businesses that create jobs, expand opportunities and improve lives in the places that need it the most.”