Rockefeller and MacArthur Foundations’ Collaborative Fund Unveils Annual Impact Report
Key Points:
- The Zero Gap Fund has mobilized over $1.04 billion for high-impact investments.
- The Fund’s 2023 investments focus on climate change, financial inclusion, and sustainable development.
- Collaboration has led to significant advancements in addressing global challenges.
The Rockefeller Foundation’s latest report on the Zero Gap Fund highlights the pivotal role of innovative financing in tackling global challenges. By the end of 2023, the Fund had successfully mobilized more than $1.04 billion in private finance across 12 strategic investment initiatives. The Fund achieved its full commitment of $30 million with two new investments in 2023, and as of January 2024, two of its investments have matured.
Investment Strategies for Sustainable Development
Launched in 2019 in partnership with the MacArthur Foundation, the Zero Gap Fund aims to drive private investment toward the UN Sustainable Development Goals (SDGs). These investments target crucial areas like health, gender equality, and employment. The Fund’s patient and flexible capital supports innovative financial mechanisms to increase large-scale private investment.
Focus on High-Impact Sectors
Maria Kozloski, Senior Vice President of Innovative Finance at The Rockefeller Foundation, emphasized the Fund’s focus on disruptive technologies and companies addressing climate change, regenerative agriculture, financial inclusion, and essential services. “The Zero Gap Fund is proving the viability of impactful solutions and strategies as the portfolio matures,” Kozloski stated.
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John Balbach, Director of Impact Investments at the MacArthur Foundation, highlighted the collaboration’s success in scaling investments through innovative financing vehicles. “This partnership demonstrates the power of catalytic capital in building a more just and sustainable world,” Balbach noted.
Notable 2023 Investments and Achievements
- Blue Forest’s Forest Resilience Bond I: Mobilized private capital for forest restoration, mitigating 27,280 metric tons of CO2e emissions and restoring 2,675 acres of ecosystems.
- LeapFrog’s Emerging Consumer Fund III: Provided healthcare and financial services to 14.8 million consumers in emerging markets and created over 97,000 jobs since 2019.
- Lightsmith’s CRAFT: Reduced 1 million tons of GHG emissions and generated 1,300 new jobs globally.
- Impact Investment Exchange’s Women’s Livelihood Bond 2: Reached over 114,000 women, offering financial literacy training to 18,000 women.
- Founder’s First Capital Partners: Deployed $8.9 million across 35 loans to underrepresented entrepreneurs in the U.S.
- Apis & Heritage’s Legacy Fund I: Converted three family-owned businesses into employee-owned firms, creating 110 new jobs.
- Seedstars’ International Ventures II: Invested $6 million in 31 tech startups, creating 205 full-time jobs.
- Horizon Capital’s Growth Fund IV: Invested over $48 million in Ukraine’s tech sector.
- Blue Forest’s FRB Catalyst Facility: Accelerated financing for ecological restoration projects, avoiding 26,300 metric tons of CO2e emissions.
- Trailhead Capital’s Regeneration Fund I: Conserved 411 million gallons of water, avoided 11,000 tons of CO2e emissions, and impacted 3.4 million acres of land.
These highlights underscore the Fund’s commitment to scalable, impactful investments that address critical global issues.
Related Article: UBS Launches Ocean Engagement Fund in Collaboration with Rockefeller Asset Management
