Zero Gap Fund Mobilizes $1.05B in Private Capital to Advance UN Sustainable Development Goals
Rockefeller Foundation and MacArthur Foundation's impact investing collaborative releases its 6th annual report.
NEW YORK, July 24, 2025 /PRNewswire/ -- The Rockefeller Foundation released its annual Zero Gap Fund: 2024 State of the Portfolio report, highlighting the critical role of catalytic capital in addressing the world's most pressing challenges. As of December 2024, the Zero Gap Fund (ZGF or the Fund) had facilitated the mobilization of over $1.05 billion in private finance across 12 high-impact investments. As of January 2025, the Fund had fully committed $30 million, with three of its investments exited.
The Zero Gap Fund was launched in 2019 in partnership with the John D. and Catherine T. MacArthur Foundation to promote investment in scalable and innovative impact-driven investment solutions. The fund deploys patient, risk-tolerant, and flexible capital into promising financial strategies and mechanisms aimed at increasing large-scale private investment to advance the UN Sustainable Development Goals (SDGs), which bring countries together in a global partnership across 17 goals for the betterment of humanity.
"In an era of challenging market conditions and ever widening financing gaps for the world's most intractable problems, innovative financing solutions can make a meaningful difference," said Maria Kozloski, Senior Vice President, Innovative Finance at The Rockefeller Foundation. "Over the past six years, the Zero Gap Fund has developed into a flexible, risk-tolerant catalyst for private investment to advance the global good. We hope that this report not only illustrates the power of catalytic capital, but also reveals new possibilities for ambition, partnership, and progress."
"The Zero Gap Fund is demonstrating the power of catalytic capital to drive impact across diverse sectors and geographies," said Debra Schwartz, Managing Director, Impact Investments at MacArthur. "We hope others will be inspired by the Fund's use of catalytic capital and its scaled approach to co-investment that is allowing more dollars to flow more quickly to impact-driven enterprises and funds around the world."
The Zero Gap Fund: 2024 State of the Portfolio report, contains deeper dives into data and impacts across investments. For example, these investments helped create more than 1,600 jobs.
Key insights through December 2024 include:
- LeapFrog's Emerging Consumer Fund III (Fund III) is a growth equity fund serving low-income consumers in Asia and Africa, incorporating a blended finance insurance product to mitigate tail-end risks. It has supported more than 161,000 jobs and in 2024 alone, Fund III reached 323 million consumers.
- Lightsmith's CRAFT focuses on climate adaptation, mobilizing capital for innovative companies delivering technologies that build community resilience. CRAFT has created 615 net new jobs and has served more than 500,000 beneficiaries in emerging markets.
- Founders First Capital Partners (FFCP) is an alternative credit provider that uses revenue-based financing to grow underinvested service-based companies. FFCP has deployed $14.1 million in capital across 52 loans, helping create 201 net new jobs.
- Apis & Heritage's Legacy Fund I finances the conversion of companies with majority low- and moderate-income workforces into 100% employee-owned businesses using an employee-led buyout structure. Legacy Fund I has helped transition 442 employees into employee-owners across five businesses and helped create 110 net new jobs.
- Seedstars International Ventures II (Fund II) invests in seed-stage tech-enabled startups across emerging and frontier markets and helps them scale. Fund II has committed $9.8 million across 45 companies, helping create 614 net new jobs.
- Horizon Capital Growth Fund IV (HCGF IV) invests predominantly in innovative, export-oriented asset-light technology companies that are more resilient to volatile macro environments. HCGF IV has invested more than $100 million across five companies, supporting more than 4,800 jobs.
- Blue Forest's FRB Catalyst Facility leverages the public-private partnership structure of the Forest Resilience Bond to create a pooled, revolving investment facility to accelerate the financing of critical ecological restoration projects. FRB Catalyst Facility has begun protection efforts in five locations helping avoid more than 127,000 metric tons of CO2e carbon emissions.
- Trailhead Capital Regeneration Fund I invests in early-stage businesses providing innovative, scalable, tech-enabled solutions for regenerative food and agriculture. Regeneration Fund I has invested in 29 companies, helping avoid 68,000 tons of CO2e carbon emissions.
About The Rockefeller Foundation
The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at www.rockefellerfoundation.org/subscribe and follow us on X @RockefellerFdn and LinkedIn @the-rockefeller-foundation.
About the John D. and Catherine T. MacArthur Foundation
The John D. and Catherine T. MacArthur Foundation supports creative people, effective institutions, and influential networks building a more just, verdant, and peaceful world. MacArthur's Impact Investment program is working to build the field of impact investing and provide catalytic capital to address social and environmental challenges around the world. MacArthur supports the Catalytic Capital Consortium, an investment, learning, and market development initiative conceived of in partnership with The Rockefeller Foundation and Omidyar Network to demonstrate the power of catalytic capital and to expand its use. For more information, sign up for MacArthur's newsletter and follow us on X and LinkedIn.
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SOURCE The Rockefeller Foundation