GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a $75 million partial credit guarantee to support a $100 million private capital raise for a gender-lens infrastructure investment fund managed by US-based impact investor ALMA.

The fund will provide debt financing to financial institutions, fintech companies and small and medium-sized enterprises (SMEs) in emerging markets, with a particular focus on sub-Saharan Africa and Asia.

The guarantee covers financing from anchor investor Aegon Asset Management and other institutional investors into Nava Capital 1, a special purpose vehicle managed by ALMA.

ALMA has also provided a $10 million subordinated tranche to absorb initial losses, offering additional protection to senior investors.

The investments were structured through a platform operated by Symbiotics, which has worked with GuarantCo on several previous transactions.

Through capital recycling, the fund is expected to deploy up to $240 million, extending its lending capacity beyond the initial capital raised.

The fund will target businesses and financial institutions supporting women's economic participation, including women-owned enterprises and lenders providing financing to female borrowers.

Its investment approach is aligned with the 2X Challenge, an international initiative promoting investment in women's economic empowerment.

The fund will also finance climate-related businesses, including electric vehicle leasing companies and small-scale renewable energy projects.

“This is an important transaction for us, as ALMA’s emerging markets-focused climate finance vehicle is innovative for having gender-lens investing as its primary objective,” said Dave Chalila, Head of Africa Investments at GuarantCo.

“Our guarantee enables the mobilisation of private capital into the vehicle and the replication of our proven model with Symbiotics to deliver accelerated impact.”

The transaction is the third fund financing arrangement to reach close within GuarantCo's broader portfolio.

The structure combines institutional investment with credit enhancement and subordinated capital to reduce investment risk, an approach intended to attract private investors into emerging market lending.

Gautam Ivatury, Managing Partner at ALMA, said the financing would allow the firm to expand lending to businesses providing financial services, clean energy and other essential products.

“This vehicle represents an innovative development impact finance structure that can be scaled up to reach even more financial institutions and SMEs in emerging markets,” he said.

For institutional investors, the guarantee provides additional credit protection when investing in emerging market private debt.

George Nijborg, Head of Insured Strategies and European Private Placements at Aegon Asset Management, said the structure addresses some of the risks associated with financing businesses in developing markets.

“The guarantee provided solves a critical part of the puzzle as our clients benefit from capital protection, stable returns and a capital efficient solution,” he said.

Valeria Berzunza, Repack Lead at Symbiotics, said the transaction demonstrated how partnerships between development finance institutions, asset managers and investment platforms could mobilise capital for financial inclusion.

GuarantCo and ALMA expect the structure to provide a model for future emerging market debt investments, potentially reducing the need for guarantee support as similar financing vehicles develop.