Deetken Impact has completed a $100 million first close of its Inclusive Climate Action Fund, advancing the impact investment manager toward a $300 million fundraising target.
The fund is focused on expanding access to capital for climate-oriented businesses and projects across Latin America and the Caribbean. Its investment strategy spans clean energy, green finance, sustainable agriculture, and agroforestry.
The first close includes $75 million in catalytic capital from the Government of Canada through Global Affairs Canada, $15 million from Peru’s development bank COFIDE, and additional commitments from private investors including Ceniarth and The Abundance Circle.
Deetken Impact said the fund is designed to use catalytic capital to reduce investment risk and help mobilize additional private-sector participation in commercially viable climate projects across the region.
Global Affairs Canada’s investment is part of Canada’s CAD$5.3 billion international climate finance commitment. According to Deetken Impact, the $75 million allocation represents the largest commitment Canada has made to an investment vehicle managed by a Canadian impact asset manager.
COFIDE’s $15 million commitment makes it the first Latin American institution to invest in the fund. The investment comes from COFIDE’s own assets and establishes the Peruvian development bank as an anchor investor in the first close.
The fund aims to connect international and local institutional capital with businesses addressing climate and economic challenges throughout Latin America and the Caribbean.
ICAF builds on nearly 15 years of investment activity by Deetken Impact in the region. The Canadian-founded manager has invested across areas including climate, financial inclusion, agriculture, affordable housing, and other essential sectors.
Deetken Impact has invested in more than 80 companies through its broader family of funds and also operates technical assistance programs intended to strengthen portfolio companies and improve social, environmental, and gender-related outcomes.
The $100 million first close gives the firm additional capital to begin deploying against its existing pipeline while continuing fundraising toward the fund’s $300 million target.
KEY QUOTES:
“ICAF is an excellent example of how Canada can use innovative climate finance to mobilize capital and advance inclusive climate action. Our confidence in the model is matched by our confidence in the partner: Deetken Impact’s track record as a Canadian-founded impact investment manager focused on Latin America and the Caribbean demonstrates that strong financial performance can go hand in hand with meaningful social and environmental outcomes.”
Cam Do, Director General, Development Finance Bureau At Global Affairs Canada
“ICAF demonstrates the kind of investment vehicle Peru needs: one that combines climate impact, capital mobilization and measurable results. COFIDE’s participation reflects our commitment to using our capital to help close critical development gaps and to encourage greater private-sector participation in investments that can deliver meaningful climate and economic outcomes.”
José Sarmiento, General Manager Of COFIDE
