Scope

Institutional investors manage well over $120 trillion globally, yet only a small fraction flows into emerging and developing economies (EMDEs). These markets represent the fastest-growing regions in the world, with GDP growth projected to outpace developed economies 2–3x over the next decade. From 2000 to 2022, capital market financing grew by 400% in middle-income countries and 800% in low-income countries. As a share of GDP, the amount in low- and middle-income countries has doubled.

EMDEs offer:

• Portfolio diversification: Reduce overall portfolio risk and offer potential downside protection during downturns in mature economies.
• Access to higher growth: Can deliver superior growth potential due to favorable demographics, urbanization, and low valuations. These dynamics often translate into returns that outperform developed economies.
• Opportunities in digital infrastructure and frontier sectors: Provide access to fast-growing, underserved sectors such as digital platforms and critical infrastructure –areas that are often saturated in developed markets.

Despite the opportunity, capital flows remain constrained by risk perceptions, limited track records, and structuring complexity. This is where blended finance becomes a powerful enabler by combining catalytic capital with commercial investment, managers can mitigate risk, align incentives, and make EMDE strategies investable at scale.

Blended finance transactions involving fund and asset managers are among the largest in the market, with a median deal size of ~$175 million. These structures demonstrate the ability of blended finance to mobilize significant volumes of commercial capital around institutional-scale opportunities. Yet despite this potential, mainstream fund and asset managers have participated in only 21% of blended finance deals to date, highlighting a vast untapped opportunity for scalable, replicable vehicles that can bring institutional capital into high-growth EMDE markets.

The Accelerator for Fund Managers (A4FM) is designed to help fund and asset managers capture this opportunity. Whether you are a first-time manager or an established firm entering new markets, A4FM equips you with the tools, expertise, and partnerships to create scalable, bankable investment vehicles. The program supports institutional investors in diversifying portfolios, entering high-growth markets, and gaining early access to frontier opportunities,while building lasting capacity for blended finance.

This program has been made possible through support from Global Affairs Canada.

A4FM provides:

Types of Grants

Applicants can apply for the following types of catalytic grants:

Grant Types	Stage I: Scoping	Stage 2: Proof-of-concept/Pilot	Stage 3: Scale-up/Expansion
Definition & Possible Activities Funded	Funding to explore the feasibility of a new solution and validate its potential. Example activities: 1. Scoping and refining design and structure of vehicle (financial and legal) 2. Market scoping and stakeholder consultations 3. Impact analysis and governance	Funding to support the design and structuring activities required to prepare for launch. Example activities include: 1. Fundraising and investor outreach 2. Design refinement and preparing legal documents 3. Investment pipeline development and warehousing or piloting investments to build a track record	After an initial blended finance vehicle pilot or launch, applicants may require support for: 1. Operational funding for an expansion, for example a, 2nd, 3rd, or final closes of the fund OR 2. Operational funding to replicate/improve the successful blended finance solution in new contexts or new geographies. For example, fund II or III
Pre-requisites for this stage	Developed initial design and structure of the blended finance vehicle, the impact and investment thesis, and early stakeholder engagement	Refined the financial model, capital structure, impact analysis, and governance with advanced engagement with potential investors	Vehicle launched, initiated capital deployment, and first close in process, compelling case and concrete investor interest for expansion
Maximum available Funding*	Up-to CAD $260,000 (~USD 190,000)	Up-to CAD $500,000 (~USD 360,000)
Type of Grant Funding	Non-repayable grants	Conditionally repayable grants
Size of the Vehicle	Capacity and potential to scale the financial vehicle to an average target size of at least US$50 million, first close could be less than US$50 million, supported with a roadmap for scaling up vehicle
Cost-Sharing	Grantees must contribute a minimum of 10% of the total cost (in cash or in-kind) towards the completion of the activities

*Grant funding will be made in Canadian Dollars

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Eligibility Criteria

Applicant types: Eligible applicants include fund managers, asset managers, or investment management/advisory firms working in partnership with a fund or asset manager. Applicants must intend to scope, design, launch, and/or scale a blended finance vehicle in EMDEs. We welcome both emerging adopters of blended finance and experienced practitioners, with grant types tailored to the maturity and needs of the proposed solution.

Focus geography: Projects must target global emerging and developing markets, as defined in the OECD-DAC List of ODA Recipients. We highly encourage vehicles that target least developed countries(LDCs) and lower middle income countries (LMICs) to apply.

Focus sectors: Solutions must deliver a clear development impact (direct or indirect) by addressing one or more sustainability-aligned sectors and demonstrate a strong link to advancing gender equality.

Mobilization: Solutions must show the potential to mobilize private capital at scale and demonstrate that the financial structure can be replicated in other markets, contributing to broader market learning and impact.

If you have any questions about eligibility, see the Frequently Asked Questions section.

Evaluation Criteria

We evaluate eligible applications based on the following criteria:

1. Track Record and Capabilities:

• Organization’s relevant experience in designing and managing investment vehicles
• Commitment of the core team
• Local presence or partnerships in target markets

2. Market Opportunity and Additionality:

• Clear market gap and rationale for using a blended structuring approach
• Potential to drive capital in EMDEs and create new investable opportunities
• Strategic use of A4FM support and applicant’s contribution

3. Target Size and Potential to Scale:

• Clear capital structure and fundraising strategy
• Level of institutional/private capital participation
• Pathway to scale-up, reach target size, and replicate at scale

4. Development Impact:

• Clear development impact thesis and value creation lens
• Targets underserved communities, with gender lens
• Clear KPIs and use of global standards for measurement and monitoring

5. Commercial Viability and Path to Financial Close:

• Bankability of the structure and alignment with investors’ risk–return profiles
• Progress toward reaching a close and clarity on next steps
• Robust risk management and governance framework

6. Strategic Partnership and Stakeholder Support:

• Support from key internal and external partners
• Well-defined roles and engagement strategy for launch

For detailed evaluation criteria and scoring, Download Evaluation Criteria.