International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, is proposing an investment of up to $40 million in the Transform & Adaptation Fund (TAF), a private credit vehicle targeting $200 million to finance climate mitigation and adaptation projects across Africa and Latin America.

The proposed anchor investment, disclosed on November 4, 2026, will support a fund co-sponsored by AfricInvest and ThirdWay Partners, with at least 75% of its capital earmarked for Africa. The investment remains pending approval, with a projected board date of November 30, 2026.

TAF will provide debt and mezzanine financing to businesses developing climate solutions, with a focus on climate-smart agriculture, sustainable mobility and the built environment. The fund will have a 12-year term, including a six-year investment period.

IFC structures $40 million commitment across three tranches

The proposed IFC commitment will comprise up to $35 million for its own account and a further $5 million through the IFC Concessional Capital Window (CCW).

TAF’s proposed $200 million capital structure will comprise three tranches: senior capital representing 30% of the fund, mezzanine financing accounting for 40%, and junior capital making up the remaining 30%.

IFC plans to subscribe up to $20 million in the senior tranche, $14 million in the mezzanine tranche and $6 million in the junior tranche. Of the junior commitment, up to $1 million will be for IFC’s own account, while up to $5 million will come through the CCW.

The concessional investment is intended to attract private investors into the senior and mezzanine tranches and help the fund reach its fundraising target. IFC estimates the subsidy associated with this blended-finance component at up to 0.7% of the total project cost.

AfricInvest and ThirdWay Partners lead sponsorship

AfricInvest will serve as lead sponsor, alongside ThirdWay Partners as co-sponsor. Both firms are existing IFC clients.

AfricInvest is a pan-African, multi-asset investment platform with more than 30 years of private-equity experience and 12 years in private debt. It manages approximately $2 billion across 21 funds, employs more than 100 investment professionals and operates from 11 offices across Africa, Europe and the Middle East. Its investment record spans more than 240 companies in 39 African countries, with over 150 exits completed.

ThirdWay Partners operates across Africa and Latin America, combining private investment, blended-finance structuring, advisory and corporate finance capabilities. Its fund-management experience includes the $70 million Africa Conservation & Communities Tourism Fund, which provides structured debt to nature-based tourism businesses across eight African countries. IFC previously invested $13 million in that vehicle.

Fund targets climate finance gaps across Africa

TAF will invest in World Bank Group member countries across Africa and Latin America, with at least 75% of its capital allocated to Africa, including minimum allocations to North Africa and IDA-eligible countries. Latin America will receive up to 25%.

IFC expects the fund to expand access to climate finance for businesses operating in markets where conventional lenders have limited capacity to support climate-focused companies.

Beyond providing long-term financing, the institution expects its anchor position to mobilise capital from African pension funds, insurers and impact investors, particularly into the senior tranche.

IFC also plans to contribute structuring expertise, experience in private credit and debt funds, and guidance on environmental and social management systems. The institution expects the fund to demonstrate the viability of blended-finance and structured-debt vehicles, encourage similar investments by fund managers and development finance institutions, and establish governance and performance benchmarks for climate-focused private credit in developing markets.