Origins of the Fund: Drafting “From Billions to Trillions” and UN Sustainable Development Goals
In April 2015, multilateral development banks including ADB, AfDB, EBRD, EIB, IDB, the IMF and World Bank jointly commissioned a report, whose drafting was led by Bertrand Badré, Blue like an Orange’s CEO and at that time Managing Director at the World Bank, titled: “From Billions to Trillions: Transforming Development Finance”.
The report states clearly that in order to meet the investment needs of the United Nations Sustainable Development Goals (SDGs), the global community needs to move the discussion from “Billions” in Official Development Assistance to “Trillions” in investments of all kinds, especially from “private sector business, finance and investment”.
Three events shaped the landscape that year: The Financing for Development Conference in Addis Ababa; the UN General Assembly; and the UN Framework Convention on Climate Change known as Accords de Paris (COP21). All of which laid the foundation for the concept of Blue like an Orange Sustainable Capital (“Blue like an Orange”).
At the same time, Blue like an Orange’s founding investor, Ray Chambers, initiated conversations with President Luis Alberto Moreno of the Inter-American Development Bank. Through those conversations emerged the unique cooperative structure between Blue like an Orange and the private lending arm of the Inter-American Development Bank, known as IDB Invest– as all parties saw an important opportunity to leverage the reach of the development finance system to attract increased private capital to achieve the SDGs.
“The objective of Blue Like an Orange Sustainable Capital is to […] show that it is possible to have a significant return while having an impact.”Bertrand Badré, CEO of Blue like an Orange Sustainable Capital.
As investors, Blue like an Orange believes that proactive orientation towards a social purpose in every investment will both support inclusive growth and enhance the performance of the portfolio. Managing for social, economic, and environmental impact is an important risk mitigation strategy for the success of the Fund’s investments.
We thus seek to invest in a diversified set of emerging market companies that deliver both strong risk-adjusted returns and social impact in direct support of the Sustainable Development Goals (SDGs).