IDB ramps up hiring of private-sector professionals

The Inter-American Development, or IDB, has plans to significantly increase its foreign workforce, sources told Devex at last week’s annual meetings in Paraguay. Devex has learned that at IDB Invest, the bank’s private sector arm, approximately 35% more jobs will be added to the staff, which currently numbers around 525 people. The bank currently has 65% of staff at its headquarters in Washington, D.C. After the hiring, it plans the split to be 50% of staff in Washington, D.C., and 50% stationed abroad. The hiring push will largely focus on staff with commercial and investment backgrounds who can help mobilize private capital into development projects — a strategic pivot that the bank hopes will unlock far larger pools of financing for Latin America and the Caribbean. “We will substantially increase our private sector staff over time,” Morgan Doyle, the general manager of the Southern Cone Regional Country Department at IDB, told Devex. The expansion is closely tied to the bank’s efforts to scale up IDB Invest, which has become central to the institution’s broader strategy. In 2024, IDB’s board approved a $3.5 billion capital increase for IDB Invest, part of a sweeping reform meant to expand the bank’s ability to crowd in private investors and scale development financing across the region. The move is expected to roughly double the unit’s investment capacity in the coming years. Private-sector representatives say the changes reflect a deliberate attempt to reshape the bank’s development model. Faheen Allibhoy, global head of development finance and advisory at J.P. Morgan, said IDB has been “very intentional about its strategy,” pointing to structural reforms such as spinning off IDB Invest with its own balance sheet, raising funds in capital markets, and recruiting professionals with commercial banking experience. “They’re small but mighty,” Allibhoy said of the institution’s private-sector arm. Part of the strategy is an “originate-to-distribute” model — in which the bank structures deals and then brings in outside investors to participate — allowing it to leverage limited capital more efficiently. “That’s allowed them to punch above their weight,” Allibhoy said. The shift reflects a broader push among multilateral development banks to stretch their balance sheets and mobilize private investment, particularly as traditional development funding faces growing constraints. Across the sector, official development assistance is under pressure as governments tighten budgets and redirect spending toward domestic priorities such as defense and industrial policy. Institutions such as IDB are increasingly being asked to compensate by leveraging private finance. The bank has embraced that role. Its leadership has launched a series of initiatives aimed at drawing more investors into Latin America, including efforts to double the number of institutional investors partnering with IDB Invest and new financial platforms designed to reduce risks that often deter private capital. The strategy reflects a growing recognition that public finance alone will not meet the region’s development needs. IDB estimates that unlocking private investment is essential to close massive financing gaps, including for climate action.