IFC and BlueOrchard Target $2 Billion to Bring Fresh Capital Into Emerging Markets

Tokio Marine’s anchor investment extends a longstanding relationship with IFC and its work to mobilise private capital across emerging markets.

Businesses in emerging markets could gain greater access to long-term funding through a partnership between the International Finance Corporation and BlueOrchard Finance, backed by a private debt investment vehicle targeting up to $2 billion in commitments. Tokio Marine Group is the anchor investor in its $300 million first closing, supporting an initiative designed to create jobs and expand economic opportunity in regions where attracting private investment has proved difficult. IFC is the World Bank Group's private-sector institution, and BlueOrchard is a global impact investment manager belonging to the Schroders Group.

Opening Emerging Market Credit to More Investors

The vehicle is designed for institutional investors, including pension funds, insurers and sovereign wealth funds, seeking long-term exposure to private credit. Its evergreen structure allows subscriptions and redemptions on an ongoing basis, subject to predefined redemption windows, with capital reinvested into new opportunities to keep funds circulating. This approach gives investors a continuing route into emerging market lending and supports the mobilisation of capital beyond a single round of investments.

IFC Managing Director Makhtar Diop said emerging markets need trillions of dollars for development, far exceeding what public finance can provide, and described the partnership as a scalable way to connect institutional funding with businesses that generate employment and improve lives. BlueOrchard CEO Michael Wehrle pointed to investor interest in opportunities combining returns, diversification and emerging market access, highlighting the firm's 25 years of experience building diversified, resilient portfolios across these economies.

Tokio Marine Deepens Its Partnership With IFC

Tokio Marine's anchor investment extends a longstanding relationship with IFC and its work to mobilise private capital across emerging markets. Masahiro Koike, Group CEO of Tokio Marine Holdings, said combining IFC's ability to source lending opportunities with BlueOrchard's experience managing emerging market debt portfolios provides access at scale to private credit that institutional investors have traditionally found difficult to reach. He linked the commitment to sustainable, resilient economic growth and job creation.

The announcement points to stronger emerging market debt fundamentals over the past two decades, supported by improved regulation, stronger governance and declining default rates. The partners see those developments as a foundation for giving institutional investors a more efficient route to deploy capital and increase their exposure to emerging market credit.

Building on a $25.5 Billion Co-Lending Platform

The initiative develops IFC's Managed Co-Lending Portfolio Program into a model intended to serve a broader investor base, building on a syndications platform launched in 2013 that now has more than $25.5 billion in capacity. MCPP enables partners to invest alongside IFC on commercial terms and gain exposure to high-quality emerging market loans, providing an established foundation for the new vehicle's effort to connect long-term institutional capital with businesses seeking finance.