GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has supplied a partial credit guarantee valued at $75 million to back a $100 million private capital raise for a gender-lens infrastructure investment fund that is managed by the U.S.–based impact investor ALMA.
The vehicle will extend debt financing to a range of financial institutions, fintech firms and small- and medium-sized enterprises operating in emerging markets, concentrating its effort on sub-Saharan Africa and Asian economies.
The guarantee covers financing contributed by anchor investor Aegon Asset Management together with other institutional backers, channeling the money into Nava Capital 1, a special-purpose vehicle overseen by ALMA.
ALMA has also contributed a $10 million subordinated tranche designed to absorb early losses, thereby offering extra protection for senior investors.
These investments are being routed through a platform run by Symbiotics, a partner that has previously collaborated with GuarantCo on several similar transactions.
Through a process of capital recycling, the fund is projected to deploy up to $240 million, a move that will broaden its lending capacity far beyond the amount initially raised.
It will target businesses and financial institutions that promote women’s economic participation, including enterprises owned by women and lenders that extend credit to female borrowers.
The fund’s investment approach aligns with the 2X Challenge, an international initiative that encourages investment aimed at women’s economic empowerment.
The fund will also finance climate-related businesses, such as electric-vehicle leasing firms and small-scale renewable-energy projects, adding a sustainability dimension to its portfolio.
“This is an important transaction for us, as ALMA’s emerging-markets-focused climate-finance vehicle is innovative for having gender-lens investing as its primary objective,” said Dave Chalila, Head of Africa Investments at GuarantCo.
Gautam Ivatury, Managing Partner at ALMA, said the financing will allow the firm to expand lending to businesses providing financial services, clean energy and other essential products.
George Nijborg, Head of Insured Strategies and European Private Placements at Aegon Asset Management, said the structure addresses some of the risks associated with financing businesses in developing markets.
“The guarantee provided solves a critical part of the puzzle as our clients benefit from capital protection, stable returns and a capital-efficient solution,” he said.
Valeria Berzunza, Repack Lead at Symbiotics, said the transaction demonstrated how partnerships between development finance institutions, asset managers and investment platforms could mobilise capital for financial inclusion.
GuarantCo and ALMA expect the structure to provide a model for future emerging market debt investments, potentially reducing the need for guarantee support as similar financing vehicles develop.
The deal marks the third fund financing transaction that GuarantCo has completed within its broader portfolio. The structure combines institutional investment with credit enhancement and subordinated capital to reduce investment risk, an approach intended to attract private investors into emerging market lending.
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