British International Investment, the UK's development finance arm, plans to raise £7 billion ($9.45 billion) from insurers, pension funds and sovereign wealth funds over the next five years. The capital will be used as co-investment alongside these institutional investors in projects across developing markets globally.

This represents a significant expansion of BII's model, which traditionally invests directly in projects. By bringing in major institutional investors as co-investors, the development finance arm can leverage its capital to deploy more firepower into emerging markets. The move comes as development finance institutions face pressure to maximise impact with limited resources. BII joins a broader trend among development banks seeking to crowd in private capital for emerging market investments.

The five-year timeframe signals a sustained push into global infrastructure and development projects. BII will likely focus on sectors including renewable energy, transportation and telecommunications in key emerging markets across Africa, Asia and Latin America. This approach allows the UK to amplify its development impact while spreading risk across multiple institutional investors.