Impact-focused investment manager Acre Impact Capital announced the closing of a capital investment from The Rockefeller Foundation and the Private Infrastructure Development Group (PIDG). According to the company, the catalytic investment will enable Acre to accelerate its strategic growth and support the launch of a number of private debt impact funds.
Founded in 2019, Acre invests in growth-stage, climate-aligned infrastructure in emerging markets by partnering and co-investing with leading commercial lenders and export credit agencies. The firm provides underserved communities in Africa access to essential services, through its investments in infrastructure sectors such as healthcare, education, social housing, transport, renewable power, agriculture, water and sanitation, waste management, climate adaptation, and technology/digital infrastructure.
Hussein Sefian, Founding Partner at Acre Impact Capital, said:
“We are thrilled to enter into a long-term partnership with aligned investors such as The Rockefeller Foundation and PIDG to advance Acre Impact Capital’s mission to provide access to essential services to underserved communities and contribute to reducing the infrastructure financing gap in Africa, which is estimated to be over $100 billion every year. Our funds invest in a commercial loan tranche of approximately 15% of each transaction, which needs to be in place before an ECA can provide a guarantee on the remaining 85% of the debt. Lack of bank funding on this commercial tranche – which has worsened since the beginning of the COVID-19 pandemic – prevents the completion of many otherwise bankable transactions.”
According to Acre, investing alongside well-established export credit agency partners mobilizes up to 5.6x private sector capital for every dollar invested, while minimizing the risks often associated with developing infrastructure in emerging markets.
Maria Kozloski, Senior Vice President of Innovative Finance at The Rockefeller Foundation, said:
“We are excited about the potential of Acre Impact Capital high impact and innovative strategy, which leverages the ECA market to mobilise largescale capital and address the huge financing gap for emerging market infrastructure.”
Emilio Cattaneo, Director at PIDG Technical Assistance, added:
“We are delighted to have been associated with the Acre Impact Capital project since its inception and to have supported the team in the development of such an innovative concept together with our friends at The Rockefeller Foundation. Through the use of PIDG Technical Assistance funding, we are proud to have been able to contribute to the initial capital required to enable Acre Impact Capital to be launched which demonstrates the power of strong partnerships and collaboration in delivering sustainable infrastructure in the countries where we can make a real difference.”