development finance institutions

Four Asian investors have formed a strategic partnership designed to encourage more Asia-focused climate private funds to come to market.

Instead of one-off, bespoke solutions, blended finance needs to be approached with a more 'wholesale' mindest, according to Dan Firger, founder and managing partner of Great Circle Capital Advisers and a speaker at the upcoming Impact & Transition Investor Summit: North America.

The German DFI invests around €2bn a year in emerging markets and has a portfolio of 100 private fund managers, senior director Gunnar Stork tells New Private Markets.

The development finance institution is seeking to understand both the risks and opportunties nature provides, according to sustainability and impact director Kaisa Alavuotunki.

British International Investment has committed $20m to the fund, which has a $400m target.

The flow of institutional capital into emerging markets is increasing, but the shortfall remains huge.

The DFI has committed £408m to private funds in the last year, according to its annual report.

Unusual and innovative structures by TPG, Legal & General, Blue Earth and ILX reduce the risk inherent in emerging markets for commercial institutional investors and help them capture more of the upside.

The DFI can compromise for the right product, but commercially competitive returns 'really important', head of private equity funds Craig Gifford tells New Private Markets.

Emerging markets infrastructure debt has suffered from a 'historic misperception' of risk-return, argue Hannah Gore-Randall and Nicholas Bamber from Legal & General.