About Allied Climate Partners
Who we are
Allied Climate Partners (ACP) is a philanthropic investment organization with a mission to increase the number of bankable, climate-related projects and businesses in emerging economies to create significant environmental, economic, and social impact. ACP’s initial focus regions are Southeast Asia, the Caribbean and Central America, Africa, and India.
What we do
ACP will select regional investment managers in emerging economies and support them with early-stage development capital and expertise necessary to increase the number of climate-related projects and asset-oriented businesses. This model is designed to address a critical financing gap at the early, risk-oriented stages of the development process. Without this support, many projects and businesses struggle to attract the necessary capital to achieve their climate-related goals.
ACP and its partners are initially aggregating an $825 million investment platform, catalyzed by $235 million in philanthropically-backed junior capital. ACP will fund the junior equity of four initial investment managers in Southeast Asia, Africa, the Caribbean & Central America, and India. Senior equity in this platform will be provided by Multilateral Development Banks (MDBs), Development Finance Institutions (DFIs), and private sector actors. By proving this model, ACP aims to induce commercially-oriented public and private sector investors to provide capital where they likely would not otherwise.
The initial proof-of-concept for ACP is the Southeast Asia Clean Energy Facility (SEACEF), managed by Clime Capital.
The ACP Approach
The challenge
A bottleneck impeding climate finance in emerging economies is a lack of bankable projects. In infrastructure, the earliest stages of project development are the riskiest. These risks are heightened in emerging economies, where the enabling environment can be underdeveloped and projects can take longer to reach completion. While early-stage project development represents the smallest portion of the overall funding needed for a project (approximately 5%), relatively few early-stage projects get financed due to risk. Even though 5% of the capital can unlock 95%, this early-stage capital is the hardest to raise for activities like technical and environmental assessments, modeling, permitting, and land acquisition.
ACP focuses on the earliest stages where risk is high
Focus on climate projects and companies at early stages of development when risk-oriented capital can have a significant impact;
Systematically de-risk investments by providing tranched, milestone-based disbursements and hands-on management support;
ACP’s capital seeks to address a critical gap in early-stage financing of climate-related projects and asset-oriented companies.
By anchoring local investment managers with catalytic, junior capital, ACP will:
Seek to exit early, crowd in third-party investors, and recycle proceeds to create more bankable projects; and
Ensure investments promote jobs, green industrialization, inclusive growth, and shared prosperity.
ACP’s initial focus regions
How ACP supports selected regional managers
ACP provides hands-on, value-added support by:
Anchoring selected investment managers with first-loss, junior equity. This enables them to raise senior equity and and create funds of sufficient scale-focused on early-stage, climate-related projects and asset-oriented businesses;
Working closely with regional investment managers to support their strategies, fundraising, and networks;
Investing in strategic partnerships in the ecosystem to improve the investment landscape for regional funds and achieve climate impact.
More than just capital
In addition to providing capital, ACP is seeking to establish targeted strategic partnerships in:
Human capital development
Policy & regulation
Financing innovation
Data & technology
ACP’s combination of philanthropic investment capital, value-added support, and targeted strategic partnerships creates multiple pathways to further our climate-related goals.