Ropes & Gray Advises Blue Earth Capital on Landmark Secondary Transaction in Emerging Markets and Impact Investing

Ropes & Gray has advised Blue Earth Capital AG (BlueEarth), the specialist global impact investor, on its acquisition, through its investment vehicles, of partial interest in three funds across Africa and Asia from British International Investment (BII), the UK’s Development Finance Institution (DFI) and impact investor.

This is the first portfolio secondary transaction by the DFI, which is structured as a pilot to support the development of a more robust secondaries private equity market, and help mobilise more capital into emerging markets.

With this pilot secondary transaction, BlueEarth through its mandates and vehicles, will acquire stakes in three of BII’s strongest funds for commercial and impact performance. These include Aavishkaar Goodwell India Microfinance Development Company II – an Aavishkaar Capital fund that pioneered impact equity funding in India; Novastar Ventures Africa Fund II – a fund that provides venture capital to improve access to essential goods, services and economic opportunity for everyday consumers, producers and suppliers in Africa; and Adenia Capital Fund IV – a fund committed to responsible investing and taking controlling stakes in companies active in various sectors including renewable energy, agriculture, manufacturing and business services in Africa.

The transaction provides geographic exposure and diversification for BlueEarth, spanning several investment strategies and vintages with proven fund managers, ensuring a balanced and risk-adjusted portfolio with both impact and return potential.

The Ropes & Gray team was led from London by asset management partner Tom Alabaster, supported by associate Dario Valoncini. Other members of the team included tax partner Andrew Howard and associate Omar Asfar.