Prosperete Growth Fund

Emerging markets including India and Mauritius must combat climate change while sustaining inclusive growth, yet growth-stage climate technology companies struggle to scale proven solutions. Around 90 per cent of start-ups in emerging markets cannot cross the “death valley” stage, where funding runs short and investors see high risk.

The project will create and operate the Prosperete Growth Fund, a private equity fund that aims to invest in 10 to 12 climate technology companies in India and Mauritius. They will span energy transition, low-emission transport, food and water security, industry and efficiency, and circularity. The fund aims to select at least 80 per cent of investee companies for their potential to transfer technology to emerging markets, such as Indonesia, Nigeria and South Africa, through knowledge sharing, exports, expansion and joint ventures.

As catalytic anchor investor, GCF takes a tranche junior to private investors, partly de-risking their investment; its USD 40 million sits alongside USD 100 million from private investors and USD 80 million from multilateral development banks and development finance institutions. Late-venture and early-growth companies offer the potential for significant returns, a main attraction of private equity. GCF reflows may be reinvested in future projects.