Azure Source Capital

Date: 2025

Asset Class: Private Debt

Description: Azure Source Capital is a blended finance investment manager expanding access to safe water and sanitation across underserved communities in Central America. By combining affordable financing with technical assistance, Azure helps local water service providers improve and expand critical infrastructure while building the operational capacity needed for long-term sustainability. Its innovative financing model mobilizes private capital to strengthen water security, improve public health, and increase climate resilience.

Why We Invest: Access to clean water and sanitation is one of the most powerful investments society can make, improving health, education, economic opportunity, and climate resilience. Yet millions of people still lack reliable water services because traditional financing often fails to reach smaller community water systems.

We invest in Azure Source Capital because it demonstrates how blended finance can overcome this market failure. By pairing affordable loans with technical assistance, Azure enables local water providers to build the financial and operational systems so they can attract additional private capital to become more sustainable. We believe this model has the potential to transform water infrastructure financing and improve the lives of millions of people and its impact more than offsets the below market financial return (targeted 3.5%).