Rockefeller Foundation and MacArthur
Foundation's impact investing collaborative releases its
5th annual report.
NEW
YORK, July 10, 2024 /PRNewswire/ -- Today, The
Rockefeller Foundation released its annual Zero Gap Fund: 2023
State of the Portfolio report, highlighting the critical role of
catalytic capital in addressing the world's most pressing
challenges. As of December 2023, the
Zero Gap Fund (ZGF or the Fund) had facilitated the mobilization of
over $1.04 billion in private finance
across 12 high-impact investment strategies. In 2023, the Fund made
two new investments, reaching its full commitment of $30 million. As of January
2024, two of its investments have successfully matured.
The Zero Gap Fund was launched in 2019 in partnership with the
John D. and Catherine T. MacArthur Foundation to promote
investment in scalable and innovative impact-driven investment
solutions. The fund deploys patient, risk-tolerant, and flexible
capital into promising financial strategies and mechanisms aimed at
increasing large-scale private investment to advance the UN
Sustainable Development Goals (SDGs). These goals include ensuring
healthy lives, achieving gender equality, and promoting full and
productive employment.
"Across its portfolio, the Zero Gap Fund invests in disruptive
technologies and tech-enabled companies to address climate change,
regenerative agriculture, financial inclusion and access to
essential services. The Fund channels impact-focused market
opportunities to mainstream investors, reducing traditional market
barriers to mobilize private capital at scale," said
Maria Kozloski, Senior Vice
President, Innovative Finance, The Rockefeller
Foundation. "As the Zero Gap Fund's portfolio matures and
climate change worsens, we are seeing proof of concept for
solutions and strategies that are critical to for deliver positive
impact to at-risk people, communities, and ecosystems."
"We are proud to support the Zero Gap Fund and The Rockefeller
Foundation with one of our field partnership investments as part of
the Catalytic Capital Consortium–an investment, learning, and
market development initiative to increase the knowledge, awareness,
and use of catalytic capital globally," said John Balbach, Director, Impact Investments at
the MacArthur Foundation. "This collaboration between our
foundations is demonstrating the power of catalytic capital to
scale up investments into promising new financing vehicles that
help build a more just, equitable, and sustainable world."
In 2023, ZGF made two new investments: Blue Forest's FRB
Catalyst Facility and the Trailhead Capital's Regeneration Fund I.
Both investments highlight the importance of collaboration between
finance, science, and communities to address the effects of climate
change and build resilient ecosystems.
Zero Gap Fund Impact Highlights:
- Blue Forest's Forest Resilience Bond I (FRB I) uses
a public private partnership structure to mobilize private capital
for investments in forest restoration and fire risk mitigation to
protect communities and ecosystems on public lands. As of 2023, FRB
I has helped to avoid 27,280 metric tons of CO2e emissions, restore
2,675 acres of terrestrial ecosystems, and protect 27,601 acre-feet
of water supply. FRB I matured in December
2023.
- LeapFrog's Emerging Consumer Fund III provides
access to financial services and healthcare for emerging consumers
in Sub-Saharan Africa, South Asia,
and Southeast Asia. Through its
portfolio companies, the fund has delivered essential healthcare
services to 14.8 million emerging consumers in 2023 and enabled
more than 97,000 jobs since 2019.
- Lightsmith's CRAFT finances solutions for climate
adaption and resilience to improve the lives of under-served
communities globally. Through its investments, CRAFT has
successfully reduced 1 million tons of net GHG emissions, while
creating more than 1,300 net new jobs as of 2023.
- Impact Investment Exchange's Women's Livelihood Bond
2 (WLB2) provides capital and other assistance to
women-focused microfinance institutions and SMEs in Asia Pacific. It has directly reached more
than 114,000 women emerging consumers and helped more than 18,000
women access financial literacy training as of 2023. WLB2 matured
in January 2024.
- Founder's First Capital Partners provides
revenue-based financing to underfunded and underrepresented
entrepreneurs across the United
States. As of 2023, the company deployed $8.9 million across 35 loans with an average size
of $255,000.
- Apis & Heritage (A&H)'s Legacy Fund I finances
the conversion of companies with large low- and moderate-income
workforces of color into 100% employee-owned businesses using an
employee-led buyout structure. As of December 2023, A&H has converted 3
family-owned business into employee-owned firms, creating 110 net
new jobs.
- Seedstars' International Ventures II is a
seed-stage venture fund that invests in tech-enabled startups
across emerging and frontier markets globally. Seedstars has
committed $6 million across 31
portfolio companies creating 205 new full-time positions.
- Horizon Capital's Growth Fund IV is Ukraine's leading private equity firm and
invests in innovative, export-oriented, asset-light technology
companies that can withstand volatile macro environments. As of
2023, their fund has invested more than $48
million in Ukraine-based
companies.
- Blue Forest's FRB Catalyst Facility leverages the public
private partnership structure of the Forest Resilience Bond to
create a pooled, revolving investment facility to accelerate the
financing of critical ecological restoration projects. As of 2023,
their efforts have helped avoid more than 26,300 metric tons of
CO2e emissions.
- Trailhead Capital's Regeneration Fund I supports
businesses that develop sustainable and regenerative practices in
agriculture and food systems, via carbon sequestration,
biodiversity, land preservation, water conservation, food waste and
quality. The Regeneration Fund I has conserved 411 million gallons
of water, avoided more than 11,000 tons of CO2e emissions, and
impacted 3.4 million acres of land across their portfolio
companies.
About The Rockefeller Foundation
The Rockefeller
Foundation is a pioneering philanthropy built on collaborative
partnerships at the frontiers of science, technology, and
innovation that enable individuals, families, and communities to
flourish. We make big bets to promote the well-being of humanity.
Today, we are focused on advancing human opportunity and reversing
the climate crisis by transforming systems in food, health, energy,
and finance. For more information, sign up for our newsletter
at www.rockefellerfoundation.org/subscribe and follow us
on X @RockefellerFdn and
LI @the-rockefeller-foundation.
About the John D. and Catherine T. MacArthur
Foundation
The John D. and Catherine T. MacArthur Foundation
supports creative people, effective institutions, and influential
networks building a more just, verdant, and peaceful world.
MacArthur's Impact Investment program is working to build the field
of impact investing and provide catalytic capital to address social
and environmental challenges around the world. MacArthur supports
the Catalytic Capital Consortium, an investment, learning, and
market development initiative conceived of in partnership with The
Rockefeller Foundation and Omidyar Network to demonstrate
the power of catalytic capital and to expand its use.
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SOURCE The Rockefeller Foundation