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Mandala Capital's Transformative Journey in Southeast Asia

Mandala Capital, a prominent private equity fund, has recently received significant recognition for its commitment to bolstering climate resilience in agriculture and food systems across South and Southeast Asia. During the 43rd Board Meeting of the Green Climate Fund (GCF), the organization granted its approval for the Mandala Capital SSEA Food Fund, which aims to raise $250 million in blended finance to facilitate changes vital for climate adaptation.

Bridging the Investment Gap

Agriculture and food systems are crucial to regional economies, providing employment for over a third of the population and accounting for about 13% of the regional GDP. Nonetheless, these sectors are currently experiencing a substantial financial gap. This gap is critical, especially as climate change threatens to decrease agricultural yields by 10-20% over the next few decades. Millions of smallholder farmers could face severe consequences if investment in climate-resilient agriculture does not accelerate.

Demetrio Innocenti, a Climate and Gender Specialist at Mandala Capital, asserts that the fund signifies a new trend in private finance, stating: "For years, we've been told that mobilizing private finance for climate adaptation was a challenge. The launch of the SSEA Food Fund is a testament to a significant shift." With GCF committing USD 36 million as an anchor investment, Mandala Capital is on track to attract millions more in private capital.

Enhancing Climate Resilience

The investment from GCF will enable Mandala Capital to catalyze more private investments to scale climate adaptation solutions that will impact over 12 million people in the region. The collaboration emphasizes a blended finance model that enables private entities to contribute to sustainable development goals.

Mr. Joven Balbosa, Undersecretary of the International Finance Group in the Philippines, underlined the importance of local initiatives and innovative SMEs within this framework, reinforcing how targeted investments could enhance food security and build climate resilience in Southeast Asia.

Mandala Capital plans to funnel investments into scalable companies that advance affordable and climate-resilient food systems. The fund addresses region-specific challenges, including food waste, surging prices, malnutrition, low productivity in agriculture, and rising protein demands.

Proven Expertise and Commitment

Mandala Capital, with over 15 years of experience, is strategically positioned to seize financial opportunities while simultaneously enhancing climate resilience. The firm has a solid track record, having successfully exited 80% of its previous investments across its initial two funds. This achievement demonstrates the team’s ability to effectively manage investments and foster value for its backers.

Uday Garg, the Founder, and Managing Partner at Mandala Capital notes that the GCF investment adds an extra layer of credibility and ambition to their climate efforts. This announcement signifies a meaningful partnership between Mandala Capital and GCF, creating pathways to attract additional private capital focused on scalable, transformative solutions in the agriculture and food sector.

Commitment to Long-term Impact

Kavita Sinha, Director of the Private Sector Facility at the GCF, echoed this sentiment, confirming that the Mandala Capital SSEA Food Programme aligns with the GCF's strategy to bolster food and income security. The structure of blended finance is not just a funding mechanism but a sustainable financing model that equips organizations to tackle climate challenges in agriculture effectively.

With GCF's support, Mandala Capital aims to expand its operations, raising a $250 million fund dedicated to climate adaptation innovation that will boost the resilience of food systems across South and Southeast Asia.

Investors and interested partners are encouraged to explore further collaboration opportunities and contribute to this vital initiative aimed at transforming agriculture into a more sustainable and resilient sector for future generations.

About Mandala Capital and GCF

Mandala Capital has been making strategic investments throughout the food and agriculture value chain in Southeast Asia and India since 2008, committing over USD 250 million across various initiatives. The GCF, on the other hand, serves as the largest climate finance institution and is pivotal in assisting developing nations in their pursuit of low-emission, climate-resilient growth.

For anyone interested in learning more about Mandala Capital's initiatives, you can reach out via their official website.