Schroders and BlueOrchard launch $100m climate impact strategy fund

The vehicle attracted the commitments in less than three months.

Schroders and BlueOrchard, the impact investment manager that is part of Schroders Group, have raised $100 million for their climate impact strategy in less than three months, according to a news release.

The Schroder ISF BlueOrchard Emerging Markets Climate Bond Fund will offer daily liquidity and invest across environmentally-focused projects, including green bonds, and support the United Nations’ climate goals, according to the release.

“This milestone, and the pace at which we have achieved it, confirms our expectation that there is strong investor demand for a climate impact strategy that targets positive environmental change in emerging markets,” Michael Wehrle, head of investment solutions at BlueOrchard, said in the release.

Schroders and BlueOrchard say the fund coincides with public debt securities deployed for financing of environmental, green and social benefit focused projects including renewable energy, energy efficiency and clean transportation.

One of the fund’s investments includes Greenko, an India-based renewable energy developer. The investment will help the company’s growth of climate-smart solutions, the firm said.

“We have identified climate change as one of the main global threats and, as investors, we possess the ability to deliver change in the world by directing capital into areas that generate positive impacts,” Carolina Minio Paluello, global head of product, solutions and quant at Schroders, said in the release.

BlueOrchard is a global impact investment manager that has invested more than $8 billion across 90 countries since forming in 2001. The asset manager also launched a sustainable assets fund in 2020 that has a target of $250 million, according to Private Debt Investor research.

Schroders finished an acquisition of a majority stake in BlueOrchard in October 2019 and joined the Global Impact Investing Network earlier this year. The firm managed $967.5 billion on behalf of investors and financial institutions worldwide as of 30 June 2021.