Convergence’s Asia Climate Solutions (ACS) Design Grant recipient, Mekong Capital, recently secured a $50 million anchor investment approval from the Green Climate Fund (GCF) for its Mekong Earth Regeneration Fund (MERF). This is an important milestone, not only for MERF, but also for the broader blended finance ecosystem in Asia.
MERF is a $200 million blended finance private equity fund that is designed to mobilize capital for regenerative agriculture, sustainable land use, agroforestry, sustainable aquaculture, and resilient food systems across the Lower Mekong region. The fund will invest in 10-12 climate focused agribusinesses, providing long-term equity capital to help them scale while overcoming the financing constraints that often limit private investments in these sectors.
Designed with a junior equity tranche to attract commercial investors, MERF aims to address the critical climate finance gap in emerging markets such as Vietnam and Laos, where private equity for regenerative agriculture remains scarce. MERF is an example of how experienced fund managers can play a critical role in structuring blended funds to make climate adaptation investible.
Over its 12-year lifespan, the fund is expected to benefit 279,400 people directly and 33,262 indirectly, deliver approximately 8 million tonnes of CO₂e emissions reductions, and create jobs, strengthen market access, and improve farmers' income resilience. By providing patient equity, MERF enables businesses to invest in sustainable land use and regenerative agriculture without the burden of immediate repayment obligations.
We are proud to have supported Mekong Capital at the proof-of-concept stage through the ACS Design Grant, an initiative under Convergence’s Blended Finance Accelerator (BFA). This is exactly the type of catalytic role Convergence’s BFA is built to play: helping existing fund managers develop demand-driven blended finance transactions that address regional development challenges.
Since establishing our Asia Pacific presence, our objective has been to deepen the region's blended finance ecosystem by bringing together investors, governments, development finance institutions, philanthropies, and fund managers to accelerate the development of investable opportunities. We believe that ecosystem building is not simply about convening conversations, but about creating the conditions for those conversations to evolve into transactions that mobilize capital towards high impact sectors.
MERF represents one example of this approach in action.
Convergence’s support to MERF has been multifaceted, including:
Data & insights: Leveraging Convergence Market Data and market intelligence to better understand comparable transactions, identify market opportunities, and inform investor engagement strategies.
Connecting & convening: Facilitating strategic introductions across the blended finance ecosystem, including engagement with Deutsche Bank, which serves as the Accredited Entity for the project, as well as development finance institutions, donor agencies, foundations, commercial investors, and other ecosystem partners that are critical to moving transactions forward. Providing opportunities for MERF to share its approach through Convergence's network, including speaking engagements and sessions that foster peer learning and connect practitioners working to structure blended finance transactions.
Mobilizing: Supporting MERF through the ACS Design Grant with funding, dedicated portfolio management, milestone-based guidance, visibility through Convergence's fundraising deal platform, and ongoing strategic support to help advance the fund toward implementation.
The milestone reflects a broader lesson for Asia’s climate finance ecosystem: investable blended finance transactions do not emerge fully formed. They require early design capital, targeted technical support, credible market data, the right partners, and sustained engagement with investors and catalytic capital providers.
At Convergence, our ambition extends beyond supporting individual transactions. Through the BFA we are helping strengthen the regional ecosystem by enabling innovative solutions to reach the market, mobilising greater private capital for climate action, and demonstrating what is possible through effective blended finance.
The ACS Design Grant is funded by Olayan Group, UBS Optimus Foundation, the Rockefeller Foundation, the Australian Department of Foreign Affairs and Trade, and the Monetary Authority of Singapore. As the initiative continues to demonstrate strong market demand and impact, Convergence is seeking additional funding partners to support its next phase and expand its reach. Organizations interested in supporting the next phase are encouraged to connect with David Schwartz, Head of Strategic Partnerships at Convergence: [email protected]
The next ACS Design Grant cycle will launch in mid-August this year, supporting blended finance solutions for climate-resilient agriculture, food systems, and gender equality across the Indo-Pacific. Check our BFA page for updates as well as for other initiatives that are accepting applications.
About Mekong Capital
Mekong Capital is a Vietnam-focused private equity firm specializing in growth capital investments. As a private equity investor in multiple market-leading companies in Vietnam, the firm is known for its Vision Driven Investing approach, through which it partners with management teams to achieve breakthrough business performance. MERF is its dedicated impact initiative.
