Blended Finance and Aligning Private Investment with Global Development: Two Sides of the Same Coin

In partnership with the Danish Embassy in the United States, the Project on Prosperity and Development published a report to evaluate the impacts, opportunities, and challenges for blended finance in global development. Over the past few decades, the composition of development finance has flipped from being primarily funded through public-sector resources to intensified interest and investment from the private sector. Blended finance is one method to unlock private capital for development, referring to structuring global development investment deals with a mixed portfolio of public and private funds to spread and smooth risk-reward profiles, “crowd in” catalytic private investment in sustainable financing, and create markets in developing and new contexts.