In response to client demand for reliable energy access and sustainable investments across emerging markets, the International Finance Corporation (IFC), a member of the World Bank Group, will invests $100 million to support a fund with a target size of $5 billion managed by Brookfield Asset Management.

By channeling capital where it is needed most, the fund will help accelerate investment in energy infrastructure and sustainable solutions, unlocking economic growth, building more resilient communities, and creating jobs across Asia, Latin America, Eastern Europe, and the Middle East, IFC said in a statement on Monday.

IFC will invest $100 million in Brookfield’s Catalytic Transition Fund LP.

IFC’s investment comes with an additional envelope of up to $75 million, which will allow IFC to co-invest alongside the fund in future deals.

The fund is anchored by $1 billion from leading climate investor ALTÉRRA via its Transformation Fund.

The fund will invest within three key themes: business transformation, energy, and sustainable solutions.

Business transformation investments may include solutions to help businesses decarbonize their operations and transition to more sustainable models.

Energy sector investments will help scale power technologies, including distributed energy systems and battery storage.

The fund will also target investment opportunities within sustainable solutions — such as energy efficiency, advanced waste management, and next‑generation aviation fuels.

“The project will help expand access to energy and scale sustainable technologies, powering businesses and communities and driving resilient economic growth,

“The fund can demonstrate to global commercial investors that supporting the expansion of energy and sustainable solutions in emerging markets can generate financial returns with measurable impact,” said IFC’s Vice President of Industries Mohamed Gouled.

Reliable, affordable energy is essential to power businesses, supply chains, and digital infrastructure that will create jobs. To meet growing demand, annual investment in electricity generation, grids, and storage in developing countries needs to increase – from around $280 billion today to around $630 billion by 2035. Yet emerging markets receive only a small share of global investment, and equity remains the scarcest form of capital – in 2023, only eight percent of global private equity fundraising went to emerging markets.

“IFC’s investment in the Fund accelerates our ability to deploy capital at scale into investments that support economic growth, energy security and decarbonization in emerging markets,” said Connor Teskey, President of Brookfield Asset Management.

“Combined with Brookfield’s decades of experience in renewable power and transition investing, IFC’s investment and global knowledge will help deliver meaningful impact for emerging markets, investors and the energy transition at large,” he added.

It is noted that IFC’s funds strategy aims to strengthen private equity markets that can support the growth of high-impact businesses in emerging economies.

By channeling capital where it is scarce through fund managers, IFC plays a critical role in private sector development, helping to build the dynamic, job-creating companies that drive sustainable growth, promote innovation, and provide essential goods and services.

IFC invests $200M in VPBank’s Sustainability Bond to boost green finance in Vietnam