Unlocking Capital for Impact: New Tools to Simplify Blended Finance

We are proud to highlight a major achievement by one of our members: British International Investment (BII), in collaboration with Boston Consulting Group (BCG), in releasing a groundbreaking report that could transform how private capital flows into emerging markets. The report, Scaling Blended Finance, introduces a new framework designed to simplify and scale investor engagement with blended finance funds, an essential mechanism for achieving the UN’s Sustainable Development Goals and tackling the climate crisis.

Historically, blended finance structures, merging public, philanthropic, and private capital, have been seen as too complex and costly, limiting their appeal to mainstream investors. But with only $15 billion mobilised annually through these mechanisms, it’s clear that a breakthrough is needed.

That’s where BII and BCG step in. Their new toolkit introduces five clear fund archetypes and a practical scorecard, offering fund managers and investors a shared language and structure to design and evaluate blended finance vehicles more efficiently. These tools aim to make blended finance more accessible, helping private investors enter previously untapped markets while delivering meaningful impact.

This report marks a significant step in reshaping how capital can be mobilised to serve the world’s most pressing development needs. Congratulations to British International Investment for this vital contribution to global finance and sustainable development.

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