IFC and BlueOrchard launch $2 billion emerging markets debt fund

The International Finance Corporation (IFC) and BlueOrchard Finance have launched an evergreen private debt fund with a target of $2 billion to mobilize institutional capital for emerging markets. The initiative aims to address financing gaps in developing economies by channeling long-term capital toward businesses that support employment, economic development, and financial inclusion.

The fund has reached a $300 million first closing, anchored by the Tokio Marine Group. This includes a $200 million commitment from Tokio Marine & Nichido Fire Insurance Co., Ltd. and a $100 million seed investment from Tokio Marine HCC.

Building on the IFC’s Managed Co-Lending Portfolio Program, the fund provides institutional investors, such as pension funds and insurance companies, with access to a diversified portfolio of IFC-originated loans. As an evergreen vehicle, it allows for ongoing capital subscriptions and redemptions subject to predefined windows.