Built as a public-private partnership, GCPF offers a platform that unites different parties towards a common goal. GCPF funds itself across three share classes: Class C Shares represent the Fund’s first-loss equity, Class B Shares rank senior to the C Share portion, and Class A shares rank senior to the other two share classes but junior to all other creditors of the Fund.
While Class C shares are essentially designed to correspond to the expectation of the governments or donors, Class B and Class A shares are of a more commercial nature and are currently held by development banks and the investment manager. The Fund leverages these share classes with private investors who invest in notes and Class A shares.
Benefits for investors
Key benefits for public investors
- Contribute to a financially sustainable vehicle for climate change mitigation
- Multiplied impact for each USD invested as capital is reused several times
- Funding leveraged by attracting private sector finance
Key benefits for private investors
- Stable returns
- First-loss risk cushion provided by more junior share classes
- Six-year track record