In addition to collaborating on prospective projects, they will also work to mobilize private sector capital by giving institutional investors greater access to high-impact private debt investment opportunities in scalable businesses, they said.
BII CEO Nick O'Donohoe said in the announcement that the partnership "furthers our ambition to create new job opportunities in developing economies and will provide private credit to help bridge the finance gap faced by many businesses." At just 3% of private credit globally, the emerging markets private debt asset class "is the natural next step for allocators of global private credit," O'Donohoe said.
ILX Fund I is an emerging market focused private debt fund that invests in loans originated and structured by multilateral development banks and other development finance institutions.
Manfred Schepers, CEO of the Amsterdam-based ILX Management, said that the fund has already received more than $1 billion in commitments from leading Dutch pension funds and is currently raising a successor fund targeting $2 billion in commitments from European pension funds.
"Working with BII, together we will increase financial capacity for project finance, financial services debt and private sector debt across Africa, Asia and the Caribbean," Schepers said in the announcement.