Schroders, BlueOrchard Finance Ltd and the Luxembourg Ministry of Finance have announced the first close of the Green Earth Impact Fund (GEIF), which is managed in a joint effort between BlueOrchard as investment manager and Schroders as the AIFM providing risk and portfolio services to the fund.
The GEIF allows institutional investors to invest in a portfolio of funds, which seek to address environmental protection and climate change and to benefit from de-risking mechanisms such as first-loss protection. The fund was conceived in June 2022 and has now achieved its first closing with a $25 million commitment from the Luxembourg Ministry of Finance.
Initiated by the Luxembourg Ministry of Finance, the fund will be set up as a fund of funds (FoF) strategy providing capital to private equity, sustainable real assets and private debt funds. In addition, the fund benefits from a de-risking mechanism as a result of the anchor investment by the Ministry of Finance within a blended finance structure.
The target size of the GEIF is $250 million.