Scope of the Accelerator
Blended finance is a proven approach to equip investors to raise and deploy capital in emerging markets and developing economies (EMDEs). In 2024 alone, blended finance funds mobilized $5.1 billion, with institutional investors contributing 50% of private sector commitments, underscoring its value to fund and asset managers when scaling up sustainable investing in EMDEs. While return opportunities exist for investors, macro risks hinder institutional investors and commercial investment flows from reaching the levels needed to support sustainable economic growth in EMDEs.
Over the past decade, fund/asset managers sponsored almost a quarter of the blended finance deal volume. Aimed at providing lifecycle support to increase their participation, the Accelerator will enable rapid prototyping and scale-up of fund/asset managers’ design of blended structures facilitating more EMDE investing. Institutional investors manage trillions in assets but are often constrained by poor risk forecasting and management. Blended finance addresses this by strategically using concessional capital to de-risk transactions, making otherwise high-impact but perceived as risky investments more attractive to commercial investors. Even a shift of less than 10% of global institutional assets toward sustainable investments in EMDEs could dramatically close the financing gap for development.
A4FM is an initiative co-created with and funded by Global Affairs Canada (GAC). The program is designed to support both newer and more established managers to launch vehicles to de-risk investments and mobilize private capital at scale by equipping them with the tools, knowledge, and network support to accelerate EMDE investing and participation in blended finance. Linked to sustainability, the program embeds an integrated impact and gender lens across all activities.
Join us for a virtual launch event on August 19 at 8:30am ET. Register here.
| Skill Building | Catalyst Grant Awards | Acceleration Support |
|---|---|---|
|
Skill Building
Curated training sessions for Canadian and global fund/asset managers that will offer practical insights into blended finance structures, including trends, case studies, and peer learning modules. Delivered both virtually and in-person, the sessions will draw on Convergence's proprietary Market Data and extensive practitioner network. Register now |
Catalyst Grant Awards
Eligible fund and asset managers can apply for catalytic grants to support the development of blended finance solutions, from scoping and proof-of-concept to launching and reaching their target size. These grants will address key design and implementation barriers such as legal and financial structuring, validating the impact thesis, pipeline development, piloting, and impact measurement frameworks. Learn more |
Acceleration Support
Customized acceleration support to awardees through curated trainings, data and analytics, peer-learning opportunities, network building, and other technical assistance activities to boost their capacity, refine and strengthen their investment models, build strategic partnerships, and accelerate the mobilization of capital toward sustainable development in EMDEs. View resources |
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: Expansion/Scale-up |
|---|---|---|---|
| Definition & Possible Activities Funded |
Funding may be sought to explore the feasibility of a new solution and validate its potential. Example activities include: 1. Scoping initial design of vehicle, legal framework, financial structure, and model 2. Conducting market scoping and stakeholder consultations 3. Conducting impact analysis |
At this stage, funding may be sought to support the design and structuring activities required to prepare for the vehicle’s possible 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 support for a larger-scale expansion. For example, 2nd, 3rd, or final closes of the fund OR 2. Operational funding to replicate/improve the successful blended finance solution and transition proven approaches to widespread scaling in new contexts or new geographies. For example, fund II or III |
| Available Funding | Grants ranging from CAD $200,000 – $500,000 | ||
| Type of funding | Non-repayable and conditionally repayable grants. | ||
Eligibility Criteria
Applicant types: The applicant must be a fund manager, an asset manager, or an investment management/advisory firm (partnering with an asset manager or fund manager) with the intention to scope, design, launch, and/or scale a blended finance vehicle in EMDEs. We are looking to support both emerging adopters of blended finance and experienced practitioners, with grant types tailored to the stage of the solution.
Focus geography: Global emerging and developing markets as per the OECD-DAC List of ODA Recipients.
Focus sectors: Solutions must target a development impact (directly or indirectly) by addressing one or more sustainability-aligned sectors.
Capital mobilization: Solutions must demonstrate the potential to effectively utilize the structure to leverage public/philanthropic resources to mobilize private investment, as well as the scale-up potential of the financial structure.
More details to follow at the virtual launch event on August 19.
