The International Finance Corporation commits $15 million to Catalyst Investment Management’s latest fund, aiming to boost climate-related projects across the Middle East and North Africa, including renewables and water technology innovations.
The International Finance Corporation (IFC) has announced plans to inject up to $15 million into Catalyst Investment Management’s latest fund, called the Catalyst MENA Climate Fund II. This move really underscores a pretty serious commitment to speeding up climate-related solutions in the Middle East and North Africa, or MENA , through making equity investments in a fund focused on renewables, energy efficiency, and water tech.
Catalyst Investment Management, which is based in Jordan, has built a name for itself as an innovative private equity manager since it was founded back in 2006. The firm specializes solely in climate-related investments, with a particular focus on the MENA region. They’ve already seen success with large projects, like the 23 MWp Falcon Ma’an Solar Power plant in Jordan. That project reflects their strategic approach, aiming for good financial returns while also making a meaningful environmental and social impact, which is pretty admirable.
The new Catalyst MENA Climate Fund II is aiming to raise somewhere between $150 million and $200 million. That’s quite a jump from the previous fund, the Catalyst MENA Clean Energy Fund I, which managed to attract $57 million in 2016. The plan is to have an initial close of up to $85 million by the end of 2025, which will significantly expand the scope and influence of climate investing throughout the region.
This fund plans to support a wide range of climate-related projects, including renewable power generation, energy storage systems, efficiency programs, and crucial water infrastructure improvements. The focus will be mainly on Jordan, Egypt, Tunisia, and Morocco. This makes sense, considering the rising demand for sustainable energy and water management solutions in the face of increasing climate risks and shrinking resources.
Industry experts say the fund intends to take either majority or large minority stakes in both greenfield (new) and brownfield (existing) projects. It aims to rely on long-term offtake agreements that can help reduce risks and provide steady returns. This kind of approach, well, at least to me, seems pretty effective in attracting longer-term institutional investors and boosting investments in climate infrastructure.
The IFC’s participation really highlights how the MENA region is increasingly viewed as a key frontier for climate finance. As part of the World Bank Group, the IFC’s role often extends beyond just providing the money; they also offer expertise, encourage private sector involvement, and support innovative solutions in emerging markets.
Catalyst’s strategy also benefits from support from various development finance institutions (DFIs). Reports indicate they’re seeking backing from prominent European DFIs as well as the Asian Infrastructure Investment Bank (AIIB). Interestingly enough, AIIB had initially approved a $20 million funding deal for this climate fund, but that project was later canceled. Sometimes, that’s just how things go in this space, securing and delivering finance can be tricky. Still, the overall institutional interest remains strong, which signals how important and promising this fund really is.
The timing of the IFC’s investment is also worth noting because the MENA region faces mounting climate challenges, like water shortages, intense heatwaves, and the push to transition to cleaner energy sources. Projects that boost renewable energy use and water efficiency are pretty much key parts of each country’s plans to meet global climate commitments under the Paris Agreement.
In the bigger picture, Catalyst’s fund complements other regional and global initiatives aimed at sustainable energy. For example, Dubai’s Alcazar Energy recently raised $490 million for its second renewable energy fund focused on emerging markets, with support from the U.S. International Development Finance Corporation and European partners. And IFC itself has invested in clean energy funds across Southeast Asia, which just shows how committed they are to supporting diverse climate markets worldwide.
Given Catalyst’s position as a regional specialist and its over 17 years of experience, along with a solid investment framework, there’s reason to believe that capital will be directed effectively towards projects that cut greenhouse gases and improve climate resilience. Their dual focus on mitigation and adaptation is especially vital in an area already heavily impacted by climate change and in urgent need of action, I think.
Right now, Catalyst is also looking for placement agents to help raise additional capital for this fund, which suggests they’re counting quite a bit on ongoing international investor interest. This fits into a broader trend, DFIs and private equity partners working together to mobilize resources for climate projects in developing regions.
All in all, the IFC’s planned $15 million equity share in the Catalyst MENA Climate Fund II highlights how momentum around climate finance in the Middle East and North Africa continues to grow. Supporting projects focused on renewables, energy efficiency, and water technology is crucial for tackling climate risks, while also fostering economic growth. With a clear plan and strong institutional backing, Catalyst Investment Management’s latest fund seems poised to really help shape a more sustainable energy future for the region.
Source: Noah Wire Services
- https://www.africaprivateequitynews.com/p/ifc-proposes-investment-in-catalyst – Please view link – unable to able to access data
- https://catalystpe.com/about/ – Catalyst Investment Management, based in Jordan, is a pioneering private equity fund manager in the MENA region, specialising in renewable energy and water sectors. Established in 2006, the firm focuses on investments that generate attractive financial returns and strategic impact. Catalyst has a proven track record, including the development of the 23 MWp Falcon Ma’an Solar Power project in 2011. Their approach combines macro-economic and strategic frameworks to enhance value, supported by a team with over seventeen years of experience in the region.
- https://catalystpe.com/funds/ – Catalyst Investment Management’s funds, including the Catalyst MENA Climate Funds (CMCF1 & CMCF2), are instrumental in driving the transition to a sustainable future. These funds provide financial resources and support to projects addressing climate change, promoting renewable energy, and enhancing resilience. CMCF2, for instance, invests in majority and substantial minority stakes in greenfield and brownfield renewable energy and climate infrastructure projects in the MENA region, benefiting from attractive, long-term offtake agreements.
- https://www.aiib.org/en/projects/details/2024/cancelled/Multicountry-Catalyst-MENA-Climate-Fund-2-CMCF2.html – The Asian Infrastructure Investment Bank (AIIB) approved a financing of USD 20 million for the Catalyst MENA Climate Fund 2 (CMCF2), aiming to promote low-carbon solutions and climate adaptation in selected AIIB member countries in the MENA region. The fund focuses on renewable energy, energy efficiency, wastewater treatment, desalination, and green hydrogen projects, primarily in Egypt, Jordan, and Tunisia. The project was approved on February 15, 2023, and was later terminated or cancelled.
- https://www.ifc.org/en/pressroom/2024/ifc-and-partners-invest-in-new-equity-fund-to-boost-clean-energy-in-southeast-asia – The International Finance Corporation (IFC) announced a $15 million investment in the Southeast Asia Clean Energy Fund II (SEACEF II), managed by Clime Capital. SEACEF II focuses on early-stage and growth-stage investments in energy projects across Southeast Asia, including Indonesia, Vietnam, and the Philippines. The fund aims to provide equity for utility-scale solar, wind, and energy storage projects, as well as support businesses in areas like rooftop solar, energy efficiency, electric mobility, and grid management.
- https://www.reuters.com/business/energy/alcazar-energy-raises-490-mln-second-fund-gets-dfc-backing-2024-05-21/ – Dubai-based private energy firm Alcazar Energy raised $490 million for its second renewable energy fund, Alcazar Energy Partners II. The fund, backed by the U.S. International Development Finance Corporation (DFC), Austria’s development bank, and various industrial groups, aims to develop over 1.6 gigawatts of clean energy across emerging markets. Investments include wind farms in the western Balkans, projected to reduce 3 million tonnes of greenhouse gas emissions annually and supply electricity to over 300,000 households.
- https://acceleratingimpact.org/wp-content/uploads/2023/11/20231115-ICFA-Catalyst-Investment-Management-RFP.pdf – Catalyst Investment Management, based in Jordan, is seeking proposals for placement agent services for its second fund, Catalyst MENA Climate Fund 2 (CMCF2). The fund aims to raise up to $200 million, anchored by leading European Development Finance Institutions (DFIs) and the Asian Infrastructure Investment Bank (AIIB). CMCF2 will invest in renewable energy, energy storage, efficiency, and water treatment projects and platforms in the MENA region, with a focus on Egypt, Jordan, and Tunisia.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative was published on November 13, 2025, and has not been previously reported elsewhere. The earliest known publication date of substantially similar content is November 13, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not been republished across low-quality sites or clickbait networks. No similar content has appeared more than 7 days earlier. The article includes updated data and does not recycle older material.
Quotes check
Score:
10
Notes:
No direct quotes are present in the narrative.
Source reliability
Score:
8
Notes:
The narrative originates from Africa Private Equity News, a specialised publication focusing on private equity in Africa. While it is a niche source, it is not widely recognised as a major news outlet. The report cites a press release from the International Finance Corporation (IFC), a reputable organisation. The report does not mention any unverifiable entities.
Plausability check
Score:
9
Notes:
The claims made in the narrative are plausible and align with known activities of the IFC and Catalyst Investment Management. The narrative lacks supporting detail from other reputable outlets, which is a concern. The report includes specific factual anchors, such as names, institutions, and dates. The language and tone are consistent with the region and topic. The structure is focused and relevant to the claim. The tone is formal and resembles typical corporate language.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is fresh, original, and based on a press release from a reputable organisation. However, it originates from a niche source and lacks supporting detail from other reputable outlets, which raises some concerns about its reliability.
