The A4FM is a CAD $10 million program running until March 2033. The A4FM will support up to 15 financial vehicles across the program’s duration, with ~3-4 grant awards per cycle. The grant amounts will vary based on the vehicle’s stage and needs, assessed against merit and alignment with evaluation criteria:

-Up to CAD $260,000 for Stage 1 (Scoping)
-Up to CAD $500,000 for Stage 2 (PoC/Pilot) and Stage 3 (Expansion/Scale-up)

The A4FM program will run two application cycles per year. The full selection process takes up to seven months on average from the call for proposals launch to final selection. The first cycle is accepting concept note submissions till 13th October 2025. The next cycle is expected to launch in March/April 2026.

The acceleration support under the A4FM program goes beyond grant funding and is designed to help fund and asset managers successfully design, structure, and launch blended finance vehicles. This comprehensive acceleration support aims to increase the likelihood of financial close and long-term success of the blended finance vehicle. Support includes:

Curated Knowledge & Learning:
-A specialized blended finance curriculum, updated on an ongoing basis, and training tailored for fund and asset managers.
-Targeted bootcamp sessions addressing awardees' specific interests and needs.

Enhanced Market Engagement:
-Strategic matchmaking with investors and ecosystem partners and showcasing opportunities.
-Access to general knowledge products and valuable market insights from Convergence.

Strategic Capacity Building:
-Peer-to-peer learning sessions for sharing best practices and strategies among A4FM awardees.
-Investor readiness and strategic positioning support, including expert feedback on critical design and related deliverables from seasoned blended finance professionals.
-Access to a curated and vetted list of technical service providers and/or TA partners.

Yes, the grant funding will be partially and fully repayable at stage 2 (Proof-of-Concept/Pilot) and Stage 3 (Expansion/Scale-up), respectively. Grant Repayment is typically contingent upon the successful launch of the financial vehicle. In this context, a Repayment Event would likely be linked to one of the following milestones:

-Achievement of a fundraising target in relation to the Financial Close (First Close, second close, or subsequent closes), or
-A revenue generation milestone, following revenue generation either from the underlying operations of the fund or from management fees earned by the fund/asset manager.

Each organization may submit one application per cycle. Please review the eligibility criteria to confirm alignment. If not eligible under A4FM, consider other Convergence Accelerator programs.

Proposals may only be submitted by private legal entities,including asset managers, fund managers, investment management or advisory firms, or formal consortiums between fund managers and investment advisory firms. Individual applicants are not eligible. The program welcomes applications from both first-time and established fund or asset managers.

Illustrative examples of eligible applicants:

-An AIFM or RAIF launching a new blended facility in least developed country
-A bank-affiliated asset manager creating a local currency blended debt fund for the first time
-A Cayman-based manager partnering with licensed service providers to launch a second blended financial vehicle
-A regional advisory firm working with a licensed fund manager to design a new solution or expand into the region
-A financial institution’s investment arm launching a blended facility
-A US-based PE firm designing a new blended fund

Please note that proposals from UN agencies, Development Finance Institutions, Multilateral Development Banks, Development Agencies, Non-Government Organizations (NGOs), and Social Enterprises may not apply as the lead applicant , they are only eligible to apply in a consortium with an eligible entity (e.g. fund/asset manager) as the lead partner.

The vehicle should demonstrate the potential to scale to a target size of at least USD 50 million. A smaller first close is acceptable, provided there is a clear and credible roadmap for scaling to the full target size over time.

Any financial vehicle targeting ODA recipient countries is eligible under A4FM. Additionally, the program is designed to prioritize underserved markets, primarily Least Developed Countries (LDCs) and Lower Middle-Income Countries (LMICs).

Total Capital Mobilization refers to the amount of total capital (public or private) attracted or unlocked by the financial vehicle. The expected capital mobilization is also similar to the target size of the financial vehicle.

Private Capital mobilization refers to the amount of private sector investment that is attracted or unlocked by using catalytic capital (such as public or philanthropic funding) in a blended finance structure. The goal is to bring in private investors who would not have participated without the risk-mitigating features provided by concessional capital.

Direct private capital mobilization: This is when private investors co-invest directly into the blended finance vehicle or transaction as a result of the concessional capital being deployed. Example: A development agency provides a first-loss tranche, and a pension fund invests in the senior tranche of the same fund due to the enhanced risk-return profile.

Indirect private capital mobilization: This refers to private capital that is mobilized further downstream, often at the portfolio company, or end-beneficiary level, as a result of the blended vehicle’s activities. Example: A blended fund provides loans to local banks, which in turn on-lend to SMEs, attracting local commercial lenders to co-finance SME portfolios that they would not have otherwise financed.

Catalytic capital, often referred to as concessional capital, is financing provided on terms more favorable than market rates to unlock investment that would otherwise not happen, typically in higher-risk or underserved markets. Catalytic capital providers are willing to accept lower returns, take on higher risk, or offer more flexible terms for vehicles that meet their impact objectives. This makes an investment more attractive to commercial investors by improving the overall risk-return profile of the structure. There is no fixed threshold on the level of concessionality for vehicles supported under the A4FM. However, applicants must provide a clear, disciplined rationale for the use of concessional capital. The concessionality should be targeted, catalytic, and proportionate to the risk-return gap it seeks to address and proposals must demonstrate a pathway to reduce the requirement of concessionality over time. Excessive or poorly justified use of concessional capital that risks market distortion may be considered ineligible under A4FM.

High additionality means the proposed blended finance vehicle fills a clear market gap and unlocks capital or outcomes that would not occur without concessional support. Examples include:

-Mainstream fund and asset managers using blended finance for the first time to enter EMDEs with an impact strategy, especially if they can increase institutional investor participation and channel more Assets Under Management (AUM) into Least Developed Countries (LDCs) and/or Lower Middle Income Countries (LMICs)
-First-time or emerging fund managers leveraging local market knowledge to tackle a specific market failure, such as early-stage capital gaps or underserved sectors, and demonstrating a pathway to scale and crowd in broader market financing over time.
-Established impact or blended finance practitioners expanding proven models into new sectors or markets, using their experience to reduce concessionality needs, improve fund economics, and attract a new class of investors.

Yes, applicants are expected to contribute to the vehicle, either financially or through in-kind contributions. This contribution could be in the form of funding a portion of the design activities or workplan through their own resources or other third-party resources. The in-kind contribution could be in the form of technical expertise, team capacity, or early-stage development work. The nature and size of the contribution may vary depending on the applicant type and the stage of the vehicle, but a meaningful commitment is encouraged to demonstrate alignment and ownership.

Below is a list of activities that may be eligible for support across various stages. Please note that this list is not exhaustive, proposals may include additional activities that contribute to the design, launch, or scale-up of the financial vehicle. The segregation of activities across the stages is based on typical use cases but may vary across different solutions. It is also important to note that catalytic grants awarded under A4FM cannot be used to make direct investments into the financial vehicle.

Learn more about Blended Finance 101 here