The fund aims to build resilience to climate change and help close the estimated US$10 billion annual global adaptation finance gap for islands by fostering a sustainable ocean economy. The fund is targeting a total size of US$100 million, with a final close anticipated in 2027.
SIDS are better understood as "Big Ocean States" and the custodians of our ocean ecosystems. Together, they steward around 30 percent of the world's ocean through their Exclusive Economic Zones, are home to more than 20 percent of global biodiversity and approximately 40 percent of the world's coral reefs. Their economies, livelihoods and cultures are fundamentally dependent on healthy oceans, with the blue economy contributing more than 40 percent of GDP in many island nations. Yet despite sitting on the front line of climate change, they receive a disproportionately small share of global development finance.
The fund will focus primarily on investments in blue economy sectors that strengthen climate adaptation and resilience, including circular economy, sustainable fisheries, ecosystem restoration, coastal resilience and climate-smart infrastructure. The portfolio will also support distributed clean energy, energy efficiency and low-carbon shipping where these contribute to broader resilience outcomes for islands.
Outrigger has been designed as a blended finance platform to mobilise institutional capital into sectors that have traditionally been underserved by private investors. The fund combines a catalytic junior tranche, supported by development finance institutions and philanthropic partners, with a senior tranche designed for private investors seeking both financial returns and measurable impact outcomes.
“Achieving the first close of Outrigger Impact Fund is a major milestone in our ambition to support adaptation and resilience in small island developing states,” said Simon Dent, managing director of Outrigger Impact, in a press release. “Through combining private and junior capital, alongside grant funding for technical assistance, Outrigger is accelerating critical blue economy investment at scale into island states. We are pleased to be working with investors and partners who share our conviction that investing in resilient blue economies is essential to the long-term prosperity of island communities.”
The investment fund is complemented by the Outrigger Technical Assistance Facility (OTAF), which provides grants and concessional financing to help early-stage projects become investment-ready. OTAF is actively supporting initiatives across the Caribbean, Indian Ocean and Pacific regions, supported by UK International Development, the Ocean Risk and Resilience Action Alliance, the Global Environment Facility and the Nordic Development Fund.
The initiative aligns directly with seven UN Sustainable Development Goals, including Climate Action (Goal 13) and Life Below Water (Goal 14). By integrating private capital with philanthropic and public funding, Outrigger aims to demonstrate that climate adaptation can deliver both sustainable financial returns and measurable environmental outcomes.
