Zero Gap Fund: State of the Portfolio 2023

The Zero Gap Fund (ZGF or the Fund) was created to address some of the world’s most pressing challenges by investing in innovative financial structures that have the potential to be replicated and scaled to catalyze additional capital. Now in its fifth year, I am proud to say that the Fund is fully committed across 12 investments. With $30 million committed, ZGF has mobilized approximately $1.04 billion from partnering investors.

Launched in 2019 in partnership with the John D. and Catherine T. MacArthur Foundation and its flagship Catalytic Capital Consortium (C3), ZGF deploys flexible, patient and risk tolerant capital to catalyze private investment into strategies that address critical global needs as defined by the United Nations Sustainable Development Goal (UN SDGs).

Across its portfolio, ZGF invests in disruptive technologies and tech-enabled companies to address climate change, regenerative agriculture, financial inclusion and access to essential services. The Fund channels impact-focused market opportunities to mainstream investors, reducing traditional market barriers to mobilize private capital at scale.

In 2023, ZGF made two new investments: Blue Forest’s FRB Catalyst Facility and Trailhead Capital Regeneration Fund I. Both investments highlight the importance of collaboration between finance, science and communities to address the effects of climate change and build resilient ecosystems. The FRB Catalyst Facility leverages a public private partnership instrument developed with Blue Forest to create a revolving investment facility to accelerate and scale the financing of forest restoration projects to reduce wildfire risks. Trailhead Capital Regeneration Fund I is an early-stage venture capital fund that invests in innovative, tech-enabled businesses targeting the transformation to regenerative food and agriculture.

The Zero Gap Fund: 2023 State of the Portfolio provides details about the investments, the impact they have achieved and capital that has been mobilized. The report highlights the results to date and demonstrates that climate and access—financial, healthcare, education, agriculture—are investable themes and drivers for new and unique business opportunities. These pioneering financial solutions lay the groundwork for channeling even greater private capital flows to investments that deliver positive impact to at-risk people, communities and ecosystems.

Maria Kozloski
Senior Vice President, Innovative Finance
The Rockefeller Foundation