Team Blitz India
BRITISH International Investment (BII), the UK’s development finance institution, has embarked on a significant stride by executing its inaugural fund portfolio sale, with the aim of galvanising increased private equity capital into emerging markets.
Swiss impact investor Blue Earth Capital announced on February 12 that it has acquired partial interests in three BII funds across Africa and Asia through investment vehicles. In a joint statement, BII and Earth Capital emphasised that this transaction will mitigate the risks associated with emerging markets by offering investors transparency into a diversified fund portfolio, thereby enabling them to make wellinformed investment decisions.
This pilot secondary transaction affords Blue Earth stakes in three of BII’s flagship funds renowned for their commercial and impact performance. These include the Aavishkaar Goodwell India Microfinance Development Company II, an Aavishkaar Capital impact equity fund in India; the Novastar Ventures Africa Fund II, specializing in venture capital investments across Africa; and the Adenia Capital Fund IV, which focuses on acquiring controlling interests in companies operating in renewable energy, agriculture, manufacturing, and business services in Africa.
Operating across dedicated private equity, private credit, and fund solutions, Blue Earth Capital is under the ownership of the Blue Earth Foundation. British International Investment is committed to supporting the UK Government’s Clean Green Initiative. Over the next five years, at least 30% of its total new commitments will be directed towards climate finance.
John Owers, Director and Head of Fund Solutions at BII, expressed in the release that this transaction presents an opportunity to explore a novel approach to encourage existing investors in emerging economies to allocate additional capital. Moreover, it aims to attract new investors to these markets over time. He highlighted that the initiative will aid fund managers in diversifying their investor base, thereby reducing their reliance on development finance institutions (DFIs).
