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The International Finance Corporation (IFC) and impact investment manager BlueOrchard have launched a private debt investment vehicle that aims to raise to $2 billion in commitments for emerging markets.
Japan’s Tokio Marine Group is the anchor investor in a $300 million first closing. The aim is to channel long-term institutional capital into emerging markets, where private investment has historically been hard to mobilise, and to help create jobs and economic opportunity.
The vehicle is aimed at private investors such as pension funds, insurers and sovereign wealth funds that want long-term exposure to private credit.
“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,” said Makhtar Diop, Managing Director, IFC.
IFC is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries and committed a record $71.7 billion to private companies and financial institutions in developing countries in fiscal year 2025.
“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,” said Michael Wehrle, CEO, BlueOrchard.
BlueOrchard was established in 2001 as part of a United Nations initiative. It focuses on emerging and frontier markets and says it has invested billions of dollars across more than 100 countries, reaching millions of underserved micro, small and mid-sized enterprises. It is part of Schroders.
Tokio Marine Group is a global insurance group with operations in Japan and 56 countries and regions, and more than 65,000 employees. IFC describes the group as a longstanding partner that has supported its efforts to mobilise private capital in emerging markets over many years.
“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,” said Masahiro Koike, Group CEO, Tokio Marine Holdings, Inc.
This investment vehicle allows for ongoing subscriptions and redemptions, ensuring that capital is continuously reinvested. It builds on IFC’s previous Managed Co-Lending Portfolio Program, which has enabled co-investment in emerging market loans since 2013.
