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To celebrate its 10th anniversary, Convergence will host the first ever Global Blended Finance Forum in Washington, DC at the Fairmont Georgetown Hotel from November 3-5, 2025.

This first of its kind gathering will bring together a wide spectrum of blended finance practitioners to share insights, discuss market trends, and break down silos, with an aim towards defining the next decade of blended finance.

The Forum will offer a variety of programming focused on the most urgent blended finance issues including private sector and local capital mobilization, data transparency, and standardization. Attendees will also have the opportunity to participate in multiple networking opportunities designed to foster collaboration and inspire and galvanize them to shape the future of blended finance.

Convergence members get access to preferred pricing. Early bird member tickets are $500 (compared to $750 for non-members). To get the discounted rate, reach out to your relationship manager.

*Early bird registration is currently open. Follow the [event LinkedIn page](https://www.linkedin.com/showcase/global-blended-finance-forum/) for up to date information, including newly announced speakers, agenda items, and themes.*

Global Blended Finance Forum

To celebrate its 10th anniversary, Convergence will host the first ever Global Blended Finance Forum in Washington, DC from November 3-5, 2025.

Convergence Global Blended Finance Forum

Role of Public Development Banks & Domestic Financial Institutions in Blended Finance PPPs

__Thursday, September 18, 2025 at 2:30PM CET__

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__Information__ 
Join Convergence alongside the World Association of PPP Units & Professionals (WAPPP) for their 'Role of Public Development Banks & Domestic Financial Institutions in Blended Finance PPPs' webinar on September 18.

National Development Banks (NDBs) are key players in long-term infrastructure financing, especially in sectors like energy, transport, agriculture, and MSMEs—areas critical to green transitions.

Owned and mandated by governments, NDBs use public funds and mobilize private and international capital to support national development goals. Unlike commercial banks, they are not solely profit-driven, allowing them to offer long-term, concessional financing for projects that may be too risky for private investors.

With public guarantees and local currency lending, NDBs help reduce project risk and improve bankability. Their strong local presence, policy alignment, and streamlined processes make them well-suited to support smaller, impactful projects and close financing gaps at the local level.

Webinar will explore the following:
1. Role of MDBs in supporting National Development Banks in mobilizing capital for infrastructure
2. Showcase example of blended finance structure with NDBs and MDBs
3. Case studies using commercial and capital markets financial solutions

Join WAPPP for this session that will explore the role of MDBs in supporting National Development Banks in mobilizing capital for infrastructure, and showcase example of blended finance structure with NDBs and MDBs.

Role of Public Development Banks & Domestic FI

Member Training: Structuring Blended Finance Vehicles: Evergreen or Closed-End?

As blended finance continues to grow as a tool for mobilizing private capital toward the Sustainable Development Goals (SDGs), fund structuring decisions play a critical role in driving scale, flexibility, and impact.

In this 60-minute session, Convergence will explore one of the key design considerations: should a blended finance fund be evergreen or closed-ended? The session will begin with a 15-minute debate between two experienced structuring firms, each advocating for one structure. They will discuss how fund structure affects capital mobilization, risk appetite, and long-term impact.

This will be followed by two 15-minute case study presentations:
- __Evergreen Fund__: highlighting how a revolving structure can enable continuous investment and impact.
- __Closed-Ended Fund__: demonstrating how a fixed timeline and capital structure can drive time-bound results.
 

Participants will gain a clear understanding of the trade-offs between evergreen and closed-ended models, along with practical insights into when each approach is most effective in blended finance.

*The training is only open to Convergence members.*

Join us as we explore one of the key design consideration: should a blended finance fund be evergreen or close-ended?

Blended Finance Vehicles: Evergreen or Closed-End?

a4fm virtuallaunch web

__Tuesday, August 19, 2025, 8:30AM - 9:30AM ET__

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(Le français suit/French follows)

Join us for the virtual launch of the [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm), a new initiative designed to strengthen global and Canadian fund/asset managers’ use of blended finance as a critical structuring tool for investing in emerging and developing markets (EMDEs). A4FM offers a comprehensive suite of support including skill building, catalytic grant awards, and ongoing acceleration support required to structure and launch blended finance solutions. This program is implemented by Convergence with the support of Global Affairs Canada.

What to expect at the launch:
- An overview of A4FM’s mission, strategic rationale, and its role in unlocking institutional capital for sustainable investments in EMDEs
- A breakdown of A4FM’s three core components
- Details about the application process for the A4FM and insight into how to apply, eligibility criteria, and evaluation criteria 

In addition to key insights, the virtual launch will feature a panel discussion on the role and value of blended finance for institutional fund and asset managers. The discussion will explore both the challenges and opportunities in this space, and how acceleration support can help unlock sustainable solutions in EMDEs.

Learn more about A4FM [here](https://www.convergence.finance/accelerator/a4fm).

__AGENDA__ 
8:30AM - Welcome Remarks 
8:35AM - Overview of the Accelerator for Fund Managers 
8:45AM - Deep Dive: Call for Proposals 
8:55AM - Panel Discussion featuring:
<ul>
<li>Chris Würdemann, Head of Emerging Markets Energy Transition, Mirova </li>
<li>Ellen Van, Investment Director, Mekong Capital</li>
<li>Faisal Khan, Managing Partner and Chief Investment Office, Acre Impact Capital</li>
</ul> 
9:20AM - Q&A and Closing Remarks
 

__(FRANÇAIS/FRENCH)__

Rejoignez-nous pour le lancement virtuel de [l'Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm), une nouvelle initiative conçue pour renforcer l'utilisation par les gestionnaires de fonds/actifs canadiens et internationaux du financement mixte en tant qu'outil de structuration essentiel pour investir dans les marchés émergents et en développement (EMDE). A4FM offre un ensemble complet de soutien, y compris le développement des compétences, l'octroi de subventions catalytiques et le soutien continu à l'accélération nécessaire pour structurer et lancer des solutions de financement mixte. Ce programme est mis en œuvre par Convergence avec le soutien d'Affaires mondiales Canada.

À quoi s'attendre lors du lancement :
- Une vue d'ensemble de la mission de l'A4FM, de sa logique stratégique et de son rôle dans le déblocage de capitaux institutionnels pour des investissements durables dans les économies émergentes et en développement (EMDE).
- Une présentation détaillée des trois composantes essentielles de l'A4FM
- Plus d’informations sur le processus de candidature à l'A4FM et sur les modalités de candidature, l'éligibilité et les critères d'évaluation. 

En plus des informations clés, le lancement virtuel comprendra une table ronde sur le rôle et la valeur du financement mixte pour les fonds institutionnels et les gestionnaires d'actifs. La discussion portera à la fois sur les défis et les opportunités dans ce domaine, et sur la façon dont le soutien à l'accélération peut aider à débloquer des solutions durables dans les marchés émergents et les économies en développement (EMDE).

Pour en savoir plus, cliquez [ici](https://www.convergence.finance/accelerator/a4fm).

Blended Finance Accelerator for Fund Managers (A4FM) Virtual Launch

Join us for the virtual launch of the Blended Finance Accelerator for Fund Managers (A4FM), a new initiative designed to strengthen global and Canadian fund/asset managers’ use of blended finance as a critical structuring tool for investing in emerging and developing markets (EMDEs).

A4FM Virtual Launch

Deal Connect July 2025

Join us for an informative webinar that will connect you to relevant blended finance investment opportunities in emerging markets. During this interactive session, Convergence members will share details about their investment opportunities that are listed on our live deals database. This is a great opportunity to explore new and unique transactions and learn from developments in the broader blended finance ecosystem.

Save the date: __July 24, 2025, from 9:00 -9:45 AM ET__. During the session, we will present two deals from our live deals database:

__Acre Impact Capital - Export Finance Feeder Fund__ 
Acre Impact Capital (Acre) has launched a pioneering Export Finance Fund—the first of its kind—focused on investing in climate-aligned, essential infrastructure that serves underserved populations. Acre is implementing an insured Feeder Fund to allow risk-constrained investors looking for impact to invest in the Fund, while benefitting from additional credit risk protection.

__Setuka Partners– Global Innovation Fund Growth__ 
Global Innovation Fund Growth is a blended fund on a mission to de-risk high-impact companies and fill the financing gap for early-growth stage companies in emerging markets. The fund is targeting four key investment themes: Rural Resilience, Future of Work, Urban Resilience, and Water and Health. The fund will target key markets across Africa and Asia.

This webinar series is exclusive to investors registered on the Convergence platform.

Deal Connect: July 2025

Join us for an informative webinar that will connect you to relevant blended finance investment opportunities in emerging markets.

gacglobaltraining july25 web

__Tuesday, July 15, 2025, 8:30AM - 11:00AM ET__

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(Le français suit/French follows)

Convergence, in partnership with [Global Affairs Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), is launching a new training program as part of its upcoming [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm). This program is designed to upskill global fund and asset managers in the structuring, designing, and fundraising of blended finance vehicles that advance sustainable investments in emerging markets and developing economies (EMDEs). The session will bring together participants from around the world, equipping them with practical knowledge and relevant examples through Convergence’s proprietary training materials and real-world case study presentations. It will also offer insights from mainstream asset managers and impact fund managers on scoping, launching, and deploying blended finance vehicles to attract concessional and commercial investors, thereby expanding their reach in EMDEs.

*Registration is subject to pre-approval.*

(FRANÇAIS/FRENCH)

Convergence, en partenariat avec [Affaires mondiales Canada](https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng), lance un nouveau programme de formation dans le cadre de son prochain [Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM)](https://www.convergence.finance/accelerator/a4fm). Ce programme est conçu pour améliorer les compétences des gestionnaires de fonds et d'actifs mondiaux en matière de structuration financière, de conception et levée de fonds pour des instruments financiers de financement mixte qui favorisent les investissements durables dans les marchés émergents et les économies en développement (EMEDs). La session réunira des participants du monde entier et leur permettra d'acquérir des connaissances pratiques et présentera des exemples pertinents. Elle offrira également des informations provenant de gestionnaires d'actifs traditionnels et de gestionnaires de fonds d'impact sur la définition, le lancement et le déploiement d'instruments de financement mixte afin d'attirer des investisseurs concessionnels et commerciaux, élargissant ainsi leur portée dans les EMDEs.

*L'inscription est soumise à une approbation préalable.*

Blended Finance Training for Global Fund and Asset Managers (Virtual)

Join us for a training session designed to upskill global fund and asset managers in the structuring, designing, and fundraising of blended finance vehicles that advance sustainable investments in Emerging Markets and Developing Economies (EMDEs).

Blended Finance Training for Global Fund and Asset Managers

memberonboardingsession july25 web v2

Tuesday, July 8, 9am – 10am ET

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Are you new to the Convergence platform? Join us for this interactive session to learn how to navigate Convergence’s blended finance data, deal flow, and events calendar. A team member will walk you through the different functions on our website using real world case examples. Together we will search the historical deals database for a particular transaction type, navigate the investor database to find the top 10 impact investors for a particular sector, and much more.

This session will use an interactive format to answer members’ frequently asked questions. Join us to discover how to use Convergence’s blended finance data in your day-to-day work.

This session is open to all Convergence members.

Member Q&A Session: How to Navigate Convergence’s Member Platform (July 2025)

Join us to discover how to use Convergence’s blended finance data in your day-to-day work.

Navigating Convergence’s Member Platform

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__Tuesday, July 8, 2025, 9:30AM - 4:30PM CET, Paris, France__

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As an intermediate-level programme, the full-day training will combine blended finance and mobilization data, information and cases, insights from Convergence experts, notable speakers from major organizations, and technical experts in the field. Convergence members will participate in an inspiring, interactive, and practice-driven day of learning and knowledge sharing around blended finance as an approach to mobilize more private capital for the United Nations Sustainable Development Goals and Paris Agreement.

The agenda will feature:
- The State of Blended Finance 2025 – Market trends
- Blended Finance for Biodiversity – Deep dive
- Group exercise: Analyzing a Blended Finance Transaction
- Fundraising Deal Marketplace
 

This training is complimentary for members (one seat for Standard Membership, two seats for Market Builder Membership), USD 500 for additional member seats, and USD 750 for non-members. Please contact your relationship manager for more details or questions on your membership type.
 

*Registration for this training is now closed. Please contact regina.rossmann@convergence.finance with any questions.*

In-Person Convergence Training for Blended Finance Practitioners in Europe (Paris, France)

Join us in Paris, France for a full-day training combining blended finance and mobilization data, information and cases, insights from Convergence experts, notable speakers from major organizations, and technical experts in the field.

Blended Finance Training in Paris, France

CONSULTATION SESSION: Convergence’s Scale Private Investment Mobilization Project  

Convergence and Singapore Sustainable Finance Association (SSFA) invite you to a 90-minute consultation session on Convergence’s Scale Private Investment Mobilization Project — a global initiative conducted in collaboration with UN DESA, UN ECA, OECD DAC members, the Gates Foundation, and others.
This project seeks to identify and advance the most effective models to mobilize private investment at scale, in alignment with the forthcoming Financing for Development (FfD) 4 Outcome Document. 
 
__Session Objectives__ 
Participants will:
- Gain insights into the project's objectives and current status
- Review and provide feedback on proposed Private Investment Mobilization Models (PIMMs)
- Contribute to shaping an Action Plan to improve the effectiveness and fairness of catalytic and concessional capital deployment for sustainable development 
 

__Session Agenda__ 
- 09:30 – 09:35 Welcome by SSFA – by Kavitha Menon, Director. SSFA
- 09:35 – 09:40 Opening Remarks – by Ritesh Thakkar, Senior Advisor and Head of Asia Pacific, Convergence
- 09:40 – 10:30 Presentation: Overview of PIMMs – by Chris Clubb, Managing Director, Convergence
- 10:30 – 11:00 Open Discussion and Feedback

 

We look forward to your attendance!

Join Convergence and SSFA for a 90-minute consultation session on Convergence’s Scale Private Investment Mobilization Project.

Scale Private Investment Mobilization Project consultation

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__Thursday, June 19, 2025 at 2:30PM - 3:30PM CET__

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Join the World Association of PPP Units & Professionals (WAPPP) for a dynamic session exploring how subnational governments and entities (such as municipalities and SOEs) are leveraging blended finance to deliver community-focused infrastructure through PPPs. Building on WAPPP’s 2024 theme of small-scale PPPs and linking it to the 2025 focus on blended finance, this session will feature case studies, insights from local governments, and trends from Convergence—highlighting innovative financing models that address the unique challenges and opportunities at the subnational level.

WAPPP 2025: Local Governments-led Blended Financing in PPPs

Join WAPPP for session exploring how subnational governments and entities (such as municipalities and SOEs) are leveraging blended finance to deliver community-focused infrastructure through PPPs.

Local Governments-led Blended Financing in PPPs

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Wednesday, June 18, 11:00am – 12:00pm SGT

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Convergence is working on the __Scale Private Investment Mobilization Project__ - with UN DESA, UN ECA, OECD DAC members, Gates Foundation and others – to identify the best solutions that will mobilize private investment at scale, fully aligned to the upcoming Financing for Development 4 (Ff4D) Outcome Document. The solutions will use MDB and DFI capital optimally and as little ODA/ODA-like money as possible to mobilize private debt and equity investment to significantly higher volumes to fund private sector and public sector projects in emerging markets. This can only be achieved with high alignment with the developing countries' priorities/ownership and debt sustainability.

We believe that we do not have a monopoly on the best solutions to mobilize private investment at scale, nor to simplify and standardize blended finance. In this regard, Convergence invites all those interested to participate in a 60-minute Consultation Session to: i) learn more about and get a status update on the Scale Private Investment Mobilization Project, ii) engage in open discussion and provide feedback on the list of Private Investment Mobilization Models proposed by Convergence; and iii) help inform the creation of an overall Action Plan for more effective, efficient, and fair deployment of catalytic and concessional capital in developing countries for scaled mobilization.

We encourage all participants to visit the [home page](https://www.convergence.finance/standardization) for the Scale Private Investment Mobilization Project and familiarize themselves with the core project documents prior to the session.

Information Session and Consultation on Convergence Scale Private Investment Mobilization Project (Asia)

Convergence invites all those interested to participate in a Consultation Session on the Scale Private Investment Mobilization Project.

Convergence Scale Private Investment Mobilization Project

Blended Finance in Fragile Settings

Fragile countries present some of the most challenging environments for private capital to invest in. Blended finance offers a structured approach that can help mitigate these risks and attract private capital into sectors critical for the development and stability of these countries.

This session will feature two Convergence members, European Bank for Reconstruction and Development (EBRD) and KIVA, who have successfully deployed blended finance structures in fragile contexts to enable impactful investments in areas such as essential infrastructure and refugee services. These organizations will share their experiences structuring and executing transactions, including how they approached risk, ensured conflict-sensitivity, and engaged local stakeholders.

The session will begin with a short presentation of Convergence’s latest data brief on blended finance in fragile and conflict-affected states, followed by a case study presentation from each speaker organization. Participants will gain insights into practical structuring strategies, key challenges and solutions, and real-world examples from fragile and conflict-affected regions.

Member Training: Blended Finance in Fragile Settings

Join us as we explore innovations in blended finance from fragile settings.

Bolivian Investment Management Ltd (BIM) is an impact investments manager with over 25 years of experience creating and managing 14 investment companies and specialized funds seeking a positive impact beyond financial return.

We spoke to Daniel Maldonado, Investor Relations Officer at BIM about how they engage in blended finance, how they measure impact, their priority sectors, and more.

__Can you tell us about BIM and how you engage in blended finance?__

BIM, established in 1997, is one of six companies within the Panamerican Group, a financial group established in 1994 in Bolivia. BIM was founded as an asset manager with a focus on investments that create impact beyond financial returns. In its early years, BIM managed multi-sectoral funds. However, in 2007, with the launch of Locfund—a regional local currency microfinance investment vehicle focused on Latin America and the Caribbean—BIM shifted its focus exclusively to the microfinance sector.

Although the term blended finance was not widely used in 2007, when the first version of the vehicle—Locfund L.P.—was launched, the fund’s structure already reflected many of its core principles. It was able to attract two private investors, drawn by the potential impact outcomes of Locfund. However, this interest was made possible only because those investors had previously worked alongside public capital providers.

The track record built through this initial experience allowed the management team to maintain relationships with prior investors. Still, in the successor vehicle, the only private investor represented just 4.8% of the total capital raised. Despite the positive financial and impact results of Locfund I, raising additional private funding for Locfund II proved to be a challenge.

By 2020, with more than 12 years of successful operations, the new and current version—Locfund Next—was launched. This iteration managed to raise a larger pool of capital and succeeded in bringing in private foundations whose participation was both material and catalytic to the fund’s launch. However, these foundations had impact mandates embedded in their bylaws, and Locfund Next continued to face difficulties in attracting "pure" private investors—those motivated primarily by risk-adjusted financial returns—in the financial inclusion space in Latin America and the Caribbean (LAC).  

Today, the effort to attract private capital remains ongoing. Experience has shown that when targeting private investors willing to take development-related risks in less conventional markets, a strong track record and critical mass are essential. Only then can vehicles like Locfund Next align with the risk-return expectations of private capital.

__Can you tell us more about Locfund Next? What are some of the outcomes/expected outcomes?__

Although the fund is in its fifth year of operations, it is expected to deliver the projected financial returns by its 10th anniversary.

Locfund Next is structured as an evergreen-like fund, allowing shareholders to enter and exit at the end of defined equity stages. The initial equity stage spans 10 years, with each subsequent stage lasting five years.

Preliminary results from the first cohort of equity investors have been positive, sparking renewed interest from potential investors. As of June 2025, Locfund Next has built a robust capital structure with the participation of 16 investors, including six purely private investors. All 16 investors, though, have at the core of its mission, the requirement of development outcomes. 

During this period, the fund has disbursed over $380 million across 279 transactions, reaching a total of 61 microfinance institutions (MFIs) throughout the region. Locfund Next has consolidated its position as a regional leader, becoming the Microfinance Investment Vehicle (MIV) with the widest MFI outreach at the same time, operating concurrently in 15 countries.

Furthermore, in alignment with its core development and impact mandate, Locfund Next was able to raise technical assistance resources from the same investors, in order for this fund to be deployed to the microfinance institutions to strengthen areas such as gender equality, asset and liability management, and corporate governance, among others. To date, Locfund Next has completed 147 Technical Assistance initiatives across the region through its Technical Support Facility – TSF, reducing the risk of the underlying portfolio of the fund.

This momentum is expected to attract greater participation from private investors during the second equity stage, anticipated around 2029–2030. 

__Can you tell us more about the challenges you’ve faced with attracting institutional investors to Locfund Next?__

The first challenge relates to scale. Both the size of the fund and the individual investment tickets must align with the mandates of institutional investors. Since the launch of Locfund I in 2007, and through the consistent growth of Locfund II and now Locfund Next, this challenge has been progressively addressed, resulting in a vehicle with sufficient critical mass to appeal to institutional capital.

The second challenge lies in the limited familiarity most institutional investors have with the microfinance sector. This often necessitates the inclusion of additional risk mitigation mechanisms to make the investment case viable. To address this, BIM has explored several alternatives, including the use of partial guarantees from development finance institutions (DFIs). These guarantees could, in turn, be supported by technical assistance funding from other DFIs—effectively creating a dual-layered blended finance structure to enhance investor confidence and facilitate further growth of Locfund Next’s operations. 

__How do you measure the impact of your blended finance investments?__

Given the nature of microfinance, Locfund Next’s portfolio inherently generates impact across multiple indicators. The fund focuses on attending to underserved populations through the microfinance institutions it supports, reaching over 40% of end clients located in rural areas across the region and targeting more than 50% of women among its final beneficiaries.

Locfund Next also aims to support the most vulnerable segments of the population. One key indicator of this is the average loan size to end clients, which currently stands at $1,400, reflecting the fund’s reach to low-income borrowers.

__What role do you see blended finance playing in the microfinance industry in LAC?__

The microfinance industry in LAC remains a relatively small segment within the broader financial systems of each country. The total outstanding microfinance portfolio in the region is estimated at approximately $52 billion, but there are around 132 million people without access to formal financial services. The industry has maintained a steady annual growth rate of around 10%, driven primarily by unmet demand. To sustain this level of growth, the sector requires approximately $5 billion in fresh capital each year.

Unfortunately, public investors alone are not able to meet this financing need, underscoring the critical role of blended finance as a catalytic solution.

The encouraging news is that, where managed effectively and with a clear focus on financial inclusion, the microfinance sector has consistently delivered positive and stable performance. In many cases, financial indicators within the industry are not only healthy but also outperform those of the traditional financial system. These results provide a compelling case for further blended finance transactions, where private investors can engage under conditions that align with their risk-return expectations, while also contributing to inclusive development in the region. 

__Do you apply a gender lens in your blended finance activities?__

Yes. While microfinance is inherently aligned with gender lens investing, BIM has made a deliberate effort to further emphasize this focus. As a result, Locfund Next was granted the status of a 2X Challenge Flagship Fund, and BIM recently became a signatory of the UN Women’s Empowerment Principles.

In practice, all microfinance institutions (MFIs) that Locfund Next has worked with are able to identify the proportion of women among their end-clients and the composition of their portfolio by gender. This gender-disaggregated data is monitored by Locfund Next on a monthly basis to ensure a clear understanding of the fund’s outreach to this key segment. On average, more than 60% of the end-clients served through the portfolio are women.

__How do you see BIM’s blended finance activities evolving in the future?__

We believe that our strong 15+ year track record has helped build a compelling case for attracting greater private sector participation. This has been achieved not only through the positive financial and impact outcomes of Locfund, but also by demonstrating the resilience and long-term sustainability of the microfinance industry. Looking ahead, we are confident that within the next five years, we can significantly expand private investor involvement, targeting a share of at least 50% among Locfund Next’s key stakeholders.

__What are some opportunities you see for blended finance in Latin America? What are some challenges?__

Large players, including global investment banks, have begun exploring investment opportunities more actively in so-called “exotic” markets. Latin America, in particular, has demonstrated its ability to deliver attractive returns with balanced and manageable risk profiles. Public records indicate that blended finance structures in the region have averaged issuance sizes of approximately $150 million, underscoring the growing appetite and scalability of such instruments. 

Sectors such as financial inclusion, renewable energy, and circular economies stand out as key industries capable of absorbing substantial amounts of capital while offering compelling returns. The success of previous blended finance structures led by these institutions paves the way for future opportunities to mobilize private capital into the region.

However, Latin America is also characterized by a history of political volatility and recurring episodes of instability. These challenges can deter more conservative investors, especially when assessing opportunities that seek to combine financial returns with broader development outcomes.


Learn how BIM engages in blended finance, how they measure impact, their priority sectors, and more.

BIM Member Spotlight with Daniel Maldonado

Earlier this year, Convergence hosted a peer-to-peer learning session for [Blended Finance Accelerator](https://www.convergence.finance/accelerator) grantees focused on fundraising for blended finance solutions at the nexus of climate and gender. This session offered Convergence grantees the opportunity to discuss challenges they faced and lessons learned while designing and investing in catalytic blended finance vehicles in the space. With funding support from Global Affairs Canada, this closed-door learning session brought together grantees, investors, and donors to explore the various aspects of fundraising for blended finance.

Key takeaways from the session:

__What funders look for in blended finance opportunities differs by mandate__ 
Grant funders and catalytic investors were represented in the session. For grant funders, development impact remains central to their decision making. They value clear communication of impact indicators, particularly those that are evidence-based, measurable, and comparable. Grant funders also have a preference for projects that use minimum concessionality to achieve high levels of development impact while aligning with policy priorities and providing transparency in how public funds are used.

Catalytic investors typically have flexible capital and can take different positions in blended finance structures, depending on their internal risk return impact analysis. For them, alignment with social outcomes is vital and usually the first point of decision making. They look for credible financial models, experienced fund managers, robust impact measurement systems, and blended structures that effectively catalyze other investors while remaining efficient and focused. Team track record and the ability to adapt and learn are also key factors in investment decisions.

__Design for complexity and communicate with simplicity__ 
Participants were in consensus that blended finance structures often require sophisticated layering of capital: grants, equity, subordinated capital, senior debt, and guarantees. Investors emphasized the importance of speaking directly to each capital provider to understand their expectations, whether they are concessional, commercial, or philanthropic, rather than utilizing a one-size-fits-all approach.

__Aggregation as a strategy to unlock capital for the missing middle__ 
One fund manager shared how aggregation is being used as a strategic tool to mobilize capital for community-driven, nature-based enterprises that typically fall in the “missing middle”; too small for traditional institutional capital, yet too large for microfinance. By pooling investments into a single facility investors can participate pari passu across a diversified portfolio of enterprises, operating in new and often higher-risk sectors such as ecotourism, sustainable fisheries, and regenerative aquaculture. This approach allows for diversification across geographies and business models, making it more attractive to commercial and impact investors alike. 

__Catalytic capital must be patient and purpose-driven__ 
Multiple participants emphasized the importance of concessional capital that is long-term, impact-first, and flexible. In markets where cash flows are uncertain and outcomes can take years to materialize, like forest restoration or climate-smart agriculture for example, long tenors are often needed. One grantee shared that while some commercial investors cap their exposures, that is where patient concessional capital can come in and help extend fund maturities. This is often necessary for long-term climate investments in emerging markets in sectors such as agriculture. This capital also provides the flexibility to respond to external shocks, evolving risks, and the adaptive nature of blended finance structures in frontier markets. As one participant noted, “patient capital is not just a nice-to-have, it is a requirement when you're working with communities, nature, and governments.”

__Fundraising is nonlinear, expect setbacks and build redundancy__ 
Several participants shared that they faced a variety of setbacks, including unforeseen regulatory issues, shifting interest rate environments, and fiscal policy changes that disrupted fundraising plans, even after soft commitments and board approvals. Participants also noted that various exogenous factors, such as budget deadlines, can be used as alignment tools to accelerate closing timelines. A broad and diverse investor pipeline was recognized as essential for risk mitigation. One participant shared that “what [they] thought would be the hardest part, long tenors, actually was not. The real challenge was synchronizing investor timelines and managing shifting macro conditions.”

__Convert impact into investment language__ 
A common hurdle, especially for grantees coming from the conservation or development space, was translating impact narratives into investor-oriented language. Creating a compelling investment pitch, with financial projections, risk management strategies, and clear pipeline visibility is critical to build credibility with commercial capital providers.

__The climate-gender nexus is gaining traction__ 
Participants acknowledged that climate metrics are no longer enough on their own. Increasingly, gender outcomes are being demanded not just as side benefits but as integral to a fund’s theory of change. Many funds now incorporate gender metrics at both the fund and investee level. Most actors apply basic gender standards, such as the 2X Challenge, across all investments. There is growing interest in embedding gender equity into pipeline sourcing, governance, and performance metrics. One participant noted that “standardized impact metrics, particularly for gender, are becoming essential,” driving transparency and supporting comparisons between deals.

__Direct vs. fund-level investing__ 
For many impact investors, especially those without a local presence, fund-level investments offer better access to emerging market pipelines in sectors like regenerative agriculture or the blue economy, where due diligence, local knowledge, and deal flow aggregation are critical. Direct investing on the other hand, is often reserved for shorter-tenor working capital structures where the investor has a trusted relationship with the enterprise. For donor investors, funds offer a scalable route to reach qualified investees.

__Partnerships must be purposeful__ 
While strategic partnerships can enhance a fund’s credibility or technical capacity, fundraising partnerships rarely move the needle unless they come with concrete introductions and influence. Impact measurement, pipeline development, and technical assistance delivery are meaningful areas where partnerships can add operational value.

__Closing reflections__ 
As the blended finance space evolves, fund managers are increasingly being asked to demonstrate strategic clarity, impact rigor, and financial discipline while operating in increasingly complex markets. Despite growing investor interest, participants reiterated the importance of staying grounded in the end goal: building viable, high-impact solutions that mobilize capital for climate resilience and gender equity at scale.

The session served as a valuable reminder that while structures matter, the real measure of success is the ability to deploy capital into meaningful outcomes, supporting communities, protecting ecosystems, and building climate resilience with gender equity at the core. 
Convergence’s Blended Finance Accelerator has awarded $24 million in grant funding to over 79 solutions to date across seven initiatives. The program supports solutions across various levels of maturity including early design, proof-of-concept, and expansion. In addition to catalytic grant funding Convergence also provides acceleration support market intelligence, networking opportunities, and produces thought leadership that collectively benefits the entire ecosystem of blended finance practitioners. 

Learn more about the [Blended Finance Accelerator](https://www.convergence.finance/accelerator).

Learn about the key takeaways from our peer-to-peer learning session for Blended Finance Accelerator grantees focused on fundraising for blended finance solutions at the nexus of climate and gender.

Takeaways from Convergence’s Learning Session for Grantees

Key Takeaways from Convergence’s Learning Session for Grantees

Between 2020 and 2021, Convergence collaborated with the Swiss State Secretariat for Economic Affairs (SECO) to address the estimated $4 trillion annual SDG financing gap in developing countries. As part of this collaboration, Convergence provided advisory support on the development of an initial grant-making mechanism (Innovation Window) aimed at providing catalytic funding to innovative financing solutions that align with the Sustainable Development Goals (SDGs) and attract greater private impact investment.

Drawing from its experience in managing its [Blended Finance Accelerator](https://www.convergence.finance/accelerator), Convergence collaborated with SECO and the initiative’s founding members to co-develop and lead the creation of the design funding window of the SDG Impact Finance Initiative (SIFI) in 2021. This initiative, dubbed the Innovation Window, provides catalytic design grants to support the early-stage development and structuring of innovative impact investment solutions. The Innovation Window complements the SIFI investment component, which provides patient, risk-tolerant capital to help crowd in private investment. Now global in scope, this original consultation process led by Swiss actors included both public and private sector partners: SECO, their intra-governmental partner the Swiss Agency for Development and Cooperation (SDC), UBS Optimus Foundation, and Credit Suisse Foundation. A consensus among the founding members was that this association should reach beyond the Swiss and position itself as a multi-donor platform. The partner association was formally [launched](https://www.seco.admin.ch/seco/en/home/seco/nsb-news/medienmitteilungen-2021.msg-id-86208.html) at the Building Bridges event in December 2021, and the collaboration with Convergence continued when it was announced as the key partner to lead the initiative’s initial launch and first call for proposals for the Innovation Window. This event marked a significant milestone in catalytic impact finance, bringing together various government entities and foundations to pool resources supporting private capital mobilization and closing the SDG funding gap.

In partnership with SIFI, Convergence launched the 1st call for proposals in March 2022 for the Innovation Window. That same year, an independent board was established by SIFI to guide the association’s decisions. As the Implementation Partner for the pilot, Convergence worked closely with SECO and other stakeholders to co-design the inaugural cycle of the Innovation Window. This involved defining the window’s objectives, eligibility criteria, grant types, and evaluation framework and ensuring the thematic focus aligned with SIFI’s vision and donor priorities for an SDG-agnostic entity.

Specifically, Convergence helped develop the use of funds and additionality criteria for each grant type, drawing on its experience with feasibility studies and proof of concept grants. Additionally, a new grant category, called expansion stage grants, was introduced to support scaling up already launched solutions. SIFI’s members and Convergence jointly promoted the first call for proposals, attracting a high-quality pool of applications during the pilot phase. Convergence also played a key role in recruiting Investment Committee members to assess and select proposals.

The inaugural Innovation Window cycle resulted in seven awards to innovators across multiple SDGs. Following this pilot phase, SIFI members recruited a local team, and in 2023 Guillaume Bonnel was appointed as the association’s first CEO. Today, the platform has reached an international scale, with Luxembourg’s Ministry of Finance becoming the first European donor to join in 2024, followed by the Korea International Cooperation Agency (KOICA) in 2025 and the Ursimone Wietlisbach Foundation as a private foundation member.

Given Convergence’s active role in co-creating and designing the window, the association collaborated with Convergence to manage the second and third cycles. From 2022 to 2024, Convergence implemented three cycles that awarded a total of $4.6 million in grants to [19 solutions](https://www.convergence.finance/design-funding/grant-portfolio#grant-portfolio) at various stages of development.

The Innovation Window is unique in that it addresses a wide range of SDGs through its targeted approach, with each call for proposal specifying three to four SDGs as its thematic priorities. In total, nine out of the 17 SDGs were covered as thematic priorities. Notably, the Window prioritized SDGs traditionally receiving less private sector attention, such as SDG 14 (Life Below Water) and SDG 16 (Peace, Justice, and Strong Institutions).
- Cycle 1 attracted 76 proposals, resulting in 7 grant awards totalling $1.5 Million to solutions focused on SDG 4, 8, 12 and 13
- Cycle 2 attracted 259 proposals, resulting in 7 grant awards totalling $1.8 Million to solutions focused on SDG 5, 14 and 15
- Cycle 3 attracted 266 proposals, resulting in 5 grant awards totalling $1.3 Million to solutions focused on SDG 3, 13 and 16 
 

These solutions spanned several impact themes and targeted diverse developing countries and emerging markets:
- __Gender__: four [Girls First Finance](https://www.convergence.finance/accelerator/grant-portfolio/4xDz9vDVzkL28FQSbSX7Me/view), [Aqua Farms Organization](https://www.convergence.finance/accelerator/grant-portfolio/6LZu6pQcimRWMpfcdA3wlR/view), [Chancen International](https://www.convergence.finance/accelerator/grant-portfolio/HzyuDSCEFF43k0Ln6e6Fi/view), [Reall](https://www.convergence.finance/accelerator/grant-portfolio/7L5FMKLvxp9Zc6rdPdqFWN/view)) out of the 19 solutions aim for a direct impact on gender equality through increasing access to finance, education, and housing. Additionally, 12 out of the 19 solutions have women-led teams
- __Emerging market focus__: 58% of the solutions target Sub-Saharan Africa, followed by those with a Global and Latin America focus.
- __Diverse impact themes:__ 
 a) 5 focus on agriculture, aquaculture, and fishing 
 b) 5 target conservation, restoration, and afforestation 
 c) 4 address access to health and education 
 d) The remaining solutions are either sector-agnostic or focus on peacebuilding, renewable energy, education, or affordable housing
- __Strong partnerships__: Strong and synergistic partnerships are a key enabler of success for grantees. Six out of 19 solutions awarded through the Innovation window are being designed or implemented in the form of partnerships between multiple entity types. This approach worked particularly well for NGOs with practical experience but limited financial structuring expertise. They partnered with specialists to fill these gaps. For example, [Global Schools Forum ](https://www.convergence.finance/accelerator/grant-portfolio/63QNGIzrKEir6Wv5wj0r6z/view)teamed up with Kaizenvest and others to create an education financing initiative (Generation Empowerment Fund) using financial institutions and impact-linked incentives. Similarly, [Ground Up](https://www.convergence.finance/accelerator/grant-portfolio/6FinFPcXlIiEOVdL8mOGdN/view) partnered with Stanbic Investment Management Services (SIMS) to manage a Fund of Funds for SMEs in Ghana, boosting its appeal to local investors through SIMS’ market presence. 
 

In addition to acting as the implementation partner managing the call for proposals and awarding design grants, Convergence continues to support the active portfolio solutions by monitoring progress against milestones and reviewing deliverables to unlock grant funding, offering capacity building opportunities, providing feedback on solution design, and additional support through access to trainings, knowledge products, and a network of blended finance practitioners.

SIFI’s awardees will, if successful, generate pipeline for investors seeking opportunities to place capital in SDG-aligned businesses. SIFI’s flexible, highly responsive funding mechanism enables it to continually adjust the calls for proposals to direct capital toward solutions that address often undercapitalized SDGs. With additional members joining SIFI recently, the initiative is on track to take the form of a broad-spectrum partnership.

*See all the SDG Impact Finance Initiative Innovation Window solutions [here](https://www.convergence.finance/accelerator/grant-portfolio?filters=eyJkZXNpZ25GdW5kaW5nV2luZG93IjpbIlNERyBJbXBhY3QgRmluYW5jZSBJbml0aWF0aXZlIERlc2lnbiBGdW5kaW5nIFdpbmRvdyJdLCJkZXNpZ25BY3Rpdml0eSI6W10sInNlY3RvcnMiOltdLCJyZWdpb25zIjpbXSwiaW1wYWN0VGhlbWVzIjpbXX0%3D).*

A behind the scenes look at the design and founding of a multi-party entity to scale innovative finance: SDG Impact Finance Initiative

Reflections on the SDG Impact Finance Initiative

A behind the scenes look at supporting the early development of a multi-party entity to scale innovative finance: SDG Impact Finance Initiative

*This op-ed was originally published on [ImpactAlpha](https://impactalpha.com/blended-finance-at-a-crossroads-the-fallout-from-shrinking-aid-and-a-shuttered-usaid/).*

The global aid architecture is undergoing a seismic shift. Since 2024, we’ve seen cuts to official development assistance, or ODA, from major donors like Germany, France, the Netherlands, and the United States. As geopolitical priorities shift inward, the era of larger foreign aid budgets appears to be ending. 

This presents a massive challenge to blended finance – the use of public and philanthropic capital to mobilize private investment in sustainable development. The impact on blended finance is compounded by the surprise shuttering of USAID, one of the most frequent investors in blended finance amongst donor agencies. 

We should care about blended finance, because it is one of the only tools for channeling private capital to places that need it – a need that will only grow as aid declines. 

__What to expect now__ 
Blended finance has been a rare bright spot in development finance over the last decade. Despite dealflow dipping in 2024 from a historic high in 2023, it still remained higher than previous years (excluding 2023), with 123 deals reaching close totaling $18 billion in financing. Median deal size also rose from $38 million (2020 – 2023) to $65 million (2024) — reflecting growing ambition and scale. 

With less ODA we can expect a more rapid culling and streamlining of the field, where deals that require long-term, ongoing ODA to reach bankability, or that are supporting pilot transactions, will decrease, in favour of prioritizing near-bankable deals with clear paths to scale. 

Aid may also become more conditional upon the donor country’s own benefit. We may see more transactions that serve donor interests — by helping their investors enter new markets or access strategic resources.

__The need for scale and standardization__ 
Ironically, the decline in ODA may provide the jolt the blended finance market needs to professionalize and scale. For years, the field has been criticized for bespoke deal structures and poor replicability. With every dollar of aid now under scrutiny, it’s time to double down on what works.

Convergence recently launched the [Scale Private Investment Mobilization Project](https://www.convergence.finance/standardization), which identifies 12 proven Private Investment Mobilization Models, or PIMMs. These are not theoretical frameworks—they’re tested structures, such as tiered funds that layer junior public capital with mezzanine tranches to attract private investors. With less concessional capital available, it is vital blended finance actors adopt standard models such as these to get more deals done efficiently.

__Filling the gap__ 
The disappearance of USAID is a blow. Its contributions were highly catalytic, especially in agriculture and non-energy infrastructure. One striking example: a $760,000 USAID grant to the Water Access Acceleration Fund helped crowd in $55 million. But let’s not overstate its absence, as it delivered only 2.1% of concessional blended finance capital annually since 2018. Other bilateral donors, such as JICA, Germany’s BMZ, and the UK’s FCDO, have contributed substantially more concessional finance by volume and remain active. 

Multilaterals like the Green Climate Fund and the Private Infrastructure Development Group are also stepping up, though they are still reliant on donor replenishments.

Non-traditional donors like the UAE are emerging too. In 2024, ALTERRA, its concessional capital platform, committed $1.5 billion to two funds. At the same time, there’s a huge opportunity for philanthropic capital, which is typically highly concessional and more willing to take first-loss positions in riskier deals. For example, the Gates-backed Accelerating Human Development Guarantee—a $750 million initiative — is helping de-risk health infrastructure investments. 

The rise of coalition-led platforms — such as the Green Guarantee Company — points to another way forward. These collaborative efforts can stretch each donor’s impact further, increase pipeline development, and support new strategic priorities.

Finally, blended finance must go local. Until now, it’s been driven by global north donors with the intention of mobilizing global, cross-border private investment. However, attracting local investment is critical for long-term sustainable development and stable local financial markets, especially amid rising debt burdens. 

__From donor dependency to strategic resilience__ 
Given that ODA comprised 19% of blended finance capital in 2024, it remains the most important source of concessional capital in the market. However, the market is proving it can grow with less—thanks in part to more strategic structuring and the presence of development finance institutions reducing the amount of ODA necessary to draw in private capital. Even as blended finance volumes dropped by 25% from 2023 to 2024, private capital remained steady at $7.1 billion in 2023 and $6.9 billion in 2024. 

Still, a durable future for blended finance depends on coordination, scale, and smarter use of scarce concessional dollars. Blended finance is at a crossroads. The collapse of traditional aid models is not the end of development finance—but it is the end of business as usual. With more standardization and strategic alignment, blended finance can not only survive this transition—it can lead it.

The global aid architecture is undergoing a seismic shift. Since 2024, we’ve seen cuts to official development assistance, or ODA, from major donors. As geopolitical priorities shift inward, the era of larger foreign aid budgets appears to be ending. 

Blended finance at a crossroads

Blended finance at a crossroads: The fallout from shrinking aid and a shuttered USAID

*Figure 1: Annual deal count and aggregate financing of blended transactions for NbS within Convergence’s Market Data, 2014-2023*

*__Written in collaboration with Elyssa Pullella, Associate, Market Insights (former)__*

As the global annual investment gap to safeguard the natural environment [rises](https://finance.earth/wp-content/uploads/2021/05/Finance-Earth-GPC-Market-Review-of-NbS-Report-May-2021.pdf) above $700 billion, there is a critical need to scale up financing for nature-based solutions (NbS). NbS [are defined](https://iucn.org/our-work/nature-based-solutions) as efforts to protect, manage, and/or restore ecosystems to address societal challenges like food insecurity, climate vulnerability, and public health. Convergence recognizes NbS alignment if nature explicitly drives revenue or impact within the transaction.

It is [estimated](https://www.weforum.org/press/2020/01/half-of-world-s-gdp-moderately-or-highly-dependent-on-nature-says-new-report/) that $44 trillion of economic value generation, over half the world’s total gross domestic product is moderately or highly dependent on nature and its services. Beyond economic consequences of failing to protect natural environments, investing in NbS offers significant returns; for instance, the benefit-cost ratio of protecting mangroves for coastal protection is estimated at more than five-to-one. NbS are also critical in combatting the negative impacts of climate change, with the potential to deliver up to 30% of the mitigation efforts needed to achieve the Paris Agreement.

Blended finance can play an important role in developing this nascent market by helping to mitigate the risks associated with investing in NbS. According to Convergence’s Market Data, there have been 48 recorded blended NbS transactions over all time, totalling $4.7 billion in aggregate finance. Convergence’s latest data brief analyzes how blended finance has been used to date to support NbS transactions, presenting insights from an analysis of transactions within Convergence’s Market Data and interviews conducted with industry stakeholders. This blog provides an overview of NbS blended data trends, along with the opportunities and challenges of applying blended finance in this space.

## Highlights from the brief: 
__NbS transaction sizes tend to be smaller than those in the broader blended climate market__ 
NbS transactions typically have a smaller deal size than the broader climate market. The median deal size of NbS transactions is $40.8 million, compared to $69.9 million for all climate transactions. 23% of NbS transactions are between $10-$25 million in deal size. Alongside the nascency of the market, these transactions [are](https://www.eci.ox.ac.uk/sites/default/files/2023-12/Financing_NbS_for_Adaptation-GCAOxford2023-finalv2.pdf) more complex, bespoke and highly location-specific. This results in higher transaction costs due to specialized assessments and expertise to accurately quantify and measure environmental and financial returns. Moreover, NbS transactions have [longer](https://www.eib.org/attachments/lucalli/20230095_investing_in_nature_based_solutions_en.pdf) maturity periods than traditional investments, as returns are often tied to natural growth cycles and environmental restorations.

The largest NbS transaction recorded in Convergence’s Market data is Climate Investor 2, an $875 million fund targeting opportunities in the water, sanitation and oceanic infrastructure and preservation sectors. The fund, which is active in Sub-Saharan Africa, Asia, and Latin America and the Caribbean (LAC), received an investment-stage grant from the Green Climate Fund, and first-loss equity to improve the risk profile of the fund for commercial investors.

![Blended Finance for Nature-Based Solutions Figure 2](//images.ctfassets.net/4cgqlwde6qy0/FgJYnMXgZjNZc4JcjbbHZ/07691c56ecb68f2f820bab31a259faa4/Screenshot_2025-07-03_at_12.15.10â__PM.png)
*Figure 2: Blended NbS transactions vs. all blended climate transactions by size (USD)*

__Blended NbS transactions use higher levels of TA than climate blended transactions__ 
The two most leveraged blending instruments in NbS transactions are concessional debt/equity (79%) and technical assistance (TA) funds (46%). TA funds are deployed at higher levels than in the broader climate blended finance market (27%). The NbS market [lacks](https://www.convergence.finance/resource/state-of-blended-finance-2024-climate-edition/view) standardized, quantifiable outcomes and generates a range of co-benefits that are difficult to monetize as revenue streams. TA helps mitigate this barrier by providing funding to create specialized measurement and verification assessments to quantify and capture the environmental and monetary returns of NbS projects, as well as improve project transparency to build investor confidence.

As well, local communities [offer](https://www.iisd.org/articles/insight/nature-based-solutions-indigenous-peoples) valuable knowledge of the unique biomes where NbS projects unfold. TA, alongside design-stage funding, can ensure proper integration of this knowledge and adequate training to build comfort of the project locally, which is necessary for the transaction’s success. Guarantees, while typically underutilized in this sector, can also be catalytic in attracting private capital to the sector. Given the barriers to [establishing](https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Report-Toolbox-on-Financing-Nature-Based-Solutions.pdf) reliable revenue streams, guarantees can be leveraged to provide a more secure environment to pilot innovative measurement approaches.

![Blended Finance for Nature-Based Solutions Figure 3](//images.ctfassets.net/4cgqlwde6qy0/5drpxq3ZfswWmS7HvRFzpv/8b207d1c86005f0e1e4994d25bd08640/Screenshot_2025-07-03_at_12.17.21â__PM.png)
*Figure 3: Blended NbS transactions vs. all blended climate transactions by archetype* 

## Challenges and opportunities for blended NbS transactions
__Use concessional instruments to build a pipeline of bankable transactions can help overcome challenges in attracting private investors to a nascent NbS market.__ 
The early development stage of the NbS market serves as a predominant barrier in mobilizing private investors to the sector. Many emerging products are managed by first-time investment managers in the space or new entities lacking the traditional track record required by institutional investors. This nascency is further compounded by a knowledge gap, [stemming](https://www.eib.org/attachments/lucalli/20230095_investing_in_nature_based_solutions_en.pdf) from a lack of information and capacity among practitioners and policymakers, and a lack of completed projects to inform future investment decisions. These issues are exacerbated by the highly localized nature of investments, and current lack of enabling environment, all factors deterring private sector participation.

Concessional instruments can help address these barriers by building a pipeline of bankable transactions and supporting the growth of NbS markets. These instruments can generate the necessary evidence needed to standardize project design, implementation approaches and impact measurement, improving market viability and investor confidence. For example, TA and design-stage grants can be used to conduct field studies and cost-benefit analyses to demonstrate the impact of projects, while results-based financing, particularly impact bonds, can link financial returns to verified environmental outcomes.

__Address longer maturities and revenue periods using below-market rate patient capital__ 
NbS inherently require longer time periods to reach maturity and yield measurable outcomes as they are intrinsically linked to natural growth rates. Many of the associated benefits of NbS are not [realized](https://cssh.northeastern.edu/policyschool/wp-content/uploads/sites/2/2021/07/Northeastern-NbS-report-final.pdf) until years after the initial investment and may vary depending on the type of intervention in place. The [prolonged](https://www.eib.org/attachments/lucalli/20230095_investing_in_nature_based_solutions_en.pdf) time horizon of NbS oftentimes does not align with the fiduciary mandates of many financial entities and private investors that seek predictable and timely returns. The issue is further [exacerbated](https://www.ceew.in/sites/default/files/ceew-catalysing-investments-for-nature-based-solutions-reccos-for-the-g20.pdf) by the lack of an enabling environment that offers long-term incentives to mobilize private investments to NbS.

This barrier can be partially [addressed](https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Report-Toolbox-on-Financing-Nature-Based-Solutions.pdf) using below-market patient capital, including concessional guarantees, long-term equity and debt with longer tenors. This capital allows funds to support NbS transactions with longer timelines, while still accommodating the return expectations of commercial investors. Additionally, patient capital can provide working capital to [help](https://www.convergence.finance/resource/blended-finance-in-latin-america-and-the-caribbean-agriculture-and-forestry/view) existing projects integrate NbS during periods of transition. For example, longer-term financing structures and concessional funding can improve the feasibility of sustainable transition loans for farmers and financial institutions. 

In conclusion, despite its potential, blended finance in the NbS sector remains limited. To increase private sector participation, the market must overcome key challenges, including market nascency and extended project timelines, amongst others. Blended finance, through the use of concessional instruments and patient capital, can help address these barriers and unlock the environmental, social and economic benefits of NbS.

How can blended finance be used to grow the nature-based solutions market?

How can blended finance be used to grow the NbS market?

*Toronto, 2 July 2025 (Seville, Spain)* - As development finance leaders around the world converge at the Fourth International Conference on Financing for Development (FFD4) in Seville Convergence Blended Finance marks a major milestone: a decade of driving private capital mobilization through blended finance.

Launched in 2015 at the Third International Conference on Financing for Development in Addis Ababa, Convergence has grown into the world’s leading organization dedicated to blending private, public, and philanthropic capital for the greater good.

Convergence now convenes a network of 200 public, private, and philanthropic organizations committed to funding and investing in sustainable development in emerging markets. It also houses the largest and most comprehensive database of historical blended finance transactions, with 1350 transactions, representing $249.2 billion. This Market Data powers Convergence’s many publications from the flagship State of Blended Finance Report to Data Briefs that provide data-driven insights on specific sectors, regions, investors, and more. 

To increase deal flow, Convergence’s Blended Finance Accelerator provides grants, technical assistance, and market intelligence to scope, structure, and launch new blended finance solutions. Since 2017, it has awarded over $22 million to 72 pioneering solutions, which have gone on to mobilize over $2 billion. The Accelerator has partnered with diverse funders to run initiatives with a range of regional and sector foci, including RS Group, a Hong Kong-based family office, the Governments of Canada and Australia, The Rockefeller Foundation, and more. Solutions supported span a wide spectrum, from the Nature Conservancy’s Belize Blue Bond for Ocean Conservation to KOIS’ Refugee Impact Bond and Albion Capital’s Green FIDC (Portuguese for Green Receivables Fund).

The blended finance market has grown alongside Convergence. Based on its recently published State of Blended Finance report, there has been steady growth in deal flow since Convergence began tracking it in 2017, with deal flow in 2024 higher than previous years (excluding 2023) at [123 deals reaching close totaling $18 billion in financing](https://www.convergence.finance/resource/state-of-blended-finance-2025/view). Median deal size also rose from $38 million (2020 - 2023) to $65 million (2024) — reflecting growing ambition and scale. 

“The recent precipitous [cuts to foreign aid](https://www.oecd.org/en/about/news/press-releases/2025/04/official-development-assistance-2024-figures.html) have put blended finance at a crossroads. It has never been more important, but it will likely get much harder,” says Joan Larrea, CEO at Convergence. “I am so proud of what Convergence has accomplished in the last ten years and I believe our work over the past decade has laid the foundation to help the market meet this moment of challenge and opportunity.”

To mark its 10-year anniversary, Convergence will host the first ever [Global Blended Finance Forum](https://globalforum2025.convergence.finance/) in Washington DC from November 3-5. This first of its kind gathering will bring together a wide spectrum of blended finance practitioners to share insights, discuss market trends, and break down silos, with an aim towards defining the next decade of blended finance. 

Convergence was initially designed and launched by Global Affairs Canada, the World Economic Forum, Dalberg Global Development Advisors, and the Global Development Incubator. Today, Convergence is supported by a growing roster of governments and global institutions committed to advancing blended finance worldwide.

__About Convergence__ 
Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement.

Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further.

__Media Contact__ 
Sijia Yi 
Head of Communications 
Convergence 
sijia.yi@convergence.finance

Convergence Blended Finance marks a major milestone: a decade of driving private capital mobilization through blended finance.

Convergence celebrates 10 years of advancing blended finance

*1 July 2025 (Seville, Spain)* – A coalition of governments, international development partners and private sector groups including the UN Capital Development Fund, UN Economic Commission for Africa, African Union Commission, Organisation for Economic Cooperation and Development (OECD), Global Investors for Sustainable Development (GISD) Alliance, Ministry for Foreign Affairs of Finland, Norway Ministry of Foreign Affairs (MFA) and Norad, Switzerland SECO and Convergence Blended Finance, are announcing the development of an Action Plan to increase mobilize private sector capital at scale in developing countries. 

The Action Plan, announced at the Fourth Financing for Development Conference (FFD4) in Seville, Spain, seeks to tackle poverty, economic growth and climate risks by deploying public sector resources through blended finance to mobilize private investment in underserved markets, which, over the last decade, has remained weak even as global wealth has ballooned. The Action Plan will include a dedicated Least Developed Countries (LDCs) and Africa-focused track to advance context-specific blended finance approaches and support scalable investment opportunities in key sectors.

FFD4 is a once-in-a-decade gathering of development partners seeking to build a renewed global financing framework to urgently unlock greater volumes of capital to close the financing gap of developing countries. Government-sourced Official Development Assistance (ODA) declined last year by over 7% compared with 2023, according to the Organisation for Economic Cooperation and Development (OECD), one of the co-proposers of the Action Plan.

“The world has the resources - the money we need – to eradicate poverty and ensure every person can live a life free from poverty. Much of those resources lie with the private sector in the world’s most developed nations and they will likely remain there until the real and perceived risks that act as a barrier to investment in underserved markets are tackled head-on,” said __Pradeep Kurukulasuriya, Executive Secretary of the UN Capital Development Fund__, which provides catalytic and blended finance solutions for underserved markets.

“Blended finance models that are tailored to country needs have the potential to de-risk markets, plug the international development finance gap and transform the lives of hundreds of millions of people living in the world’s underserved markets and Least Developed Countries,” Mr Kurukulasuriya added.

“Bridging Africa’s investment gap demands bold, coordinated action. This Action Plan marks a turning point, a practical blueprint to shift global capital toward sustainable development in countries that need it most. The UN Economic Commission for Africa is committed to ensuring that Africa is not only part of the conversation, but central to the solution” added __Claver Gatete, Executive Secretary, UN Economic Commission for Africa__.

“As traditional streams of overseas development assistance dry up, more people than ever are talking about the promise of blended finance,” shared __Joan Larrea, Chief Executive Office of Convergence__. “At FFD4, with this joint proposal, we have made a significant step towards making that promise a reality.”

“Norway is proud to collaborate with this global coalition on developing the Action Plan to mobilize private investment for sustainable development. Addressing the financing gaps in Least Developed Countries and underserved markets is critical to tackling poverty, hunger, and climate challenges. By leveraging blended finance and fostering innovative partnerships, we aim to contribute to transformative change and create a foundation for equitable and inclusive growth,” said __Åsmund Aukrust, Norway’s Minister of Development__.

"Mobilization of private capital for financing sustainable development is an integral part of Finland’s foreign and development policy”, says __Ville Tavio, Finland’s Minister for Foreign Trade and Development__. “Financing for Development Conference will increase the clarity and formality of private capital mobilization as part of the financing sustainable development for the next decade. We believe that developing a common action plan and standardizing the proven blended finance models will help us scale up private capital mobilization to deliver on the commitments agreed here in Seville.”

While global assets have doubled to $482 trillion over the last decade, private sector investment to and within low- and middle-income countries has remained stubbornly weak. Only 5% of those global assets are invested in developing countries, excluding China, according to the Financial Stability Board, an international body that monitors the global financial system. Of that 5%, only a tiny proportion reaches the most underserved markets and the world’s 44 Least Developed Countries, which are collectively home to some 880 million people.

The world stands at a crossroads for financing sustainable development with an estimated annual financing gap of $4 trillion - up from $2.5 trillion pre-pandemic. The OECD reports that all “official development finance” activity mobilized an average of $57 billion in private investment annually over the last five years – just 1% of the $6-7 trillion needed each year if the Sustainable Development Goals (SDGs) are to be met.

At the same time, domestic financial resources in developing countries are insufficient and cross-border private investment flows from developed to developing countries has been low over the past decade.

Blended finance has the potential to transform private investment flows and positively contribute to the FfD4 Outcome Document mobilization objectives and to the SDGs.

Signatories of the Joint Initiative have committed to develop an “effective, efficient, fair and practical action plan” through the remainder of 2025 and into 2026 to identify how to use a blend of public sector and philanthropic resources to mobilize and crowd-in larger amounts of private sector finance for development results at scale.

The Action Plan will describe practical measures to mobilize private investment using standardized and replicable blended finance models tailored to country contexts, with an emphasis on alignment with national priorities and global development goals with the following measurable results:
- At least 16 OECD DAC countries will agree to or endorse the Action Plan by March 31, 2026.
- At least 27 African countries and 27 non-African developing countries will also endorse the Action Plan by the same date.
- At least 16 developed and 54 developing countries will commit to implementing the plan starting June 30, 2026.
 
The Action Plan is one of a series being submitted to conference organisers that seek to turn the objectives outlined in the FFD4 outcome document into a pathway for action.

 
__More about the signatories of the joint proposal__

__United Nations Capital Development Fund (UNCDF)__ 
[UN Capital Development Fund (UNCDF)](https://www.uncdf.org/) mobilizes and catalyses an increase in capital flows for impactful investments in high-risk markets, especially in Least Developed Countries, Small Island Developing States and countries in special situations. By crowding in capital through the deployment of risk-absorbing financial instruments, mechanisms and structuring advisory, UNCDF contributes to job creation, sustained economic growth and equitable prosperity in almost 80 countries and nearly all LDCs.

In partnership with UN entities and development partners, UNCDF operates with speed and agility to deliver scalable, blended finance solutions to drive systemic change and pave the way for commercial finance and scale up by development finance institutions and multilateral development banks.

__[United Nations Economic Commission for Africa (ECA)](https://www.uneca.org/)__ 
Established by the Economic and Social Council (ECOSOC) of the United Nations (UN) in 1958 as one of the UN's five regional commissions, ECA's mandate is to promote the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa's development.

__Convergence Blended Finance__ 
[Convergence](https://www.convergence.finance/) is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and the Paris Agreement.

Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further.

__Ministry for Foreign Affairs of Finland__ 
[Ministry for Foreign Affairs of Finland](https://um.fi/frontpage) is responsible for implementing Finland’s development policy. In a changing world, Finland actively participates in international cooperation and uses its expertise to resolve challenges. Finland emphasises the role of private capital in financing sustainable development, and actively works to channel investment into developing markets. Finland uses its development finance strategically to support this goal. At the FfD4 conference, Finland promotes standardisation of blended finance models to help mobilise private investors more effectively.

FOR MEDIA ENQUIRIES, CONTACT: 
comms@convergence.finance 

Sarah Harris 
sarah.harris.simpson@uncdf.org

Sophia Denekew 
denekews.uneca@un.org 
+251929907766

Global coalition of Member States, international organizations, and private actors commit to develop an Action Plan to increase private investment mobilization for developing countries by end of 2027 .

Announcing an Action Plan to mobilize private sector capital

Global coalition of Member States, international organizations, and private actors commit to develop an Action Plan to increase private investment mobilization for developing countries by end of 2027

*Toronto, 30 June, 2025* — Today the Government of Canada has [announced](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html) the launch of the [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm) alongside the Fourth International Conference on Financing for Development (FfD4) in Sevilla, Spain.

This CAD 10 million, eight-year initiative is funded by Global Affairs Canada (GAC) and implemented by Convergence Blended Finance. It aims to strengthen the capacity of Canadian and global fund and asset managers to participate in blended finance by equipping them with tailored training, catalytic grant funding, and acceleration assistance required to structure and launch blended finance solutions.

Blended finance—leveraging public/philanthropic capital to attract private investment—is critical to mobilizing funds for emerging and developing markets (EMDEs). In 2024, blended funds [mobilized](https://www.convergence.finance/resource/state-of-blended-finance-2025/) $5.1 billion, with institutional investors accounting for 50% of private sector commitments, highlighting the strong potential of fund and asset managers to leverage blended finance for sustainable development.

The Accelerator addresses the unique needs of two target groups:
- __Institutional asset managers__ who are increasingly seeking to diversify portfolios while achieving impact and risk-adjusted returns in EMDEs.
- __Emerging fund managers__, especially those operating in nascent markets, who need assistance to grow and structure investable, high-impact opportunities and reach scale.
 
The Accelerator will help build the capabilities of these two target groups to generate traction sooner and accelerate the market roll-out of their blended finance solutions. To ensure long-term resilience and effectiveness, investments in EMDEs should be guided by an integrated impact and gender lens, which will be a core focus of the program. The Accelerator will also place a strong emphasis on building the knowledge and skills of Canadian asset managers, to increase their participation in EMDE investments through blended finance as a structuring tool.

The A4FM program is made up of three integrated components:
1. __Skill building for Canadian and global fund and asset managers__ 
Sessions offering practical insights into blended finance structures, including trends, case studies, and peer learning modules: 
- [Blended Finance Training for Global Fund and Asset Managers (Virtual)](https://www.convergence.finance/calendar/7dG7LTSEMIr8KCBgzYQlPc/view) on __July 15th at 8:30 AM ET__
- [Expressions of interest for in-Canada training sessions for Canadian fund and asset managers (fall/winter)](https://docs.google.com/forms/d/e/1FAIpQLScHyG4zXcKhQ7RVRBiUcsOMK9RGUOr4VyS3wQF3A0TiAgsNKA/viewform?usp=preview)
2. __Catalytic grants to scope, design and launch blended finance solutions__ 
Grants between CAD 200,000 to 500,000, to support the development of blended finance solutions, from scoping and proof-of-concept to launching and reaching the target size. 

3. __Acceleration support__ 
Customized acceleration support through curated trainings, data and analytics, peer-learning opportunities, network building, and other technical assistance activities.

__Join Convergence and Global Affairs Canada for a virtual launch event on August 19, 2025. [Register now](https://www.convergence.finance/calendar/2jobmhkAxJFO5xatuq0Uy7/view).__

__Quotes:__ 
“Canada is proud to partner with Convergence, a Canadian partner, and a global leader in blended finance. With the unique combination of strategic funding through this project, alongside Canadian mentorship, training, and coaching, we can grow new investment opportunities in developing countries. Together we can increase the mobilization of capital to create a gender inclusive market and improve the livelihoods of underserved communities in the developing world”. 
— *The Honourable Randeep Sarai, Secretary of State (International Development)*

“The A4FM is unique for two reasons: first, it is a targeted approach to the intractable challenge of building deal pipeline in blended finance by supporting asset and fund managers to do just that; second, it offers these asset and fund managers a full suite of support from training and grant funding to network building and technical assistance,” says Joan Larrea, CEO at Convergence. “We’re grateful to the Government of Canada for their leadership in blended finance and their tremendous support of A4FM.”

“Commercial investment flows remain significantly below what’s needed for sustainable economic growth in EMDEs, with macro risks deterring institutional investors. Among private actors, asset managers, private equity, and venture capital firms accounted for 21% of blended finance deals over the past decade. Aimed to provide support across various stages, the Accelerator will enable rapid prototyping and scale-up of fund/asset managers’ design of blended structures, facilitating more EMDE investing,” says Leah Pedersen, Senior Director, Blended Finance Accelerator at Convergence. 

__About Convergence__ 
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.
On top of market acceleration, through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.

__About Global Affairs Canada__ 
We define, shape and advance Canada’s interests and values in a complex global environment. We manage diplomatic relations, promote international trade and provide consular support. We lead international development, humanitarian, and peace and security assistance efforts. We also contribute to national security and the development of international law.

(FRANÇAIS/FRENCH)

__Convergence et le Canada lancent l'Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM) lors de la 4ème Conférence internationale sur le financement du développement (FFD4) à Séville__

*Toronto, Canada 30 juin* - Le gouvernement du Canada a [annoncé](https://www.canada.ca/en/global-affairs/news/2025/06/secretary-of-state-sarai-concludes-participation-in-the-fourth-international-conference-on-financing-for-development.html) aujourd'hui le lancement du site [Blended Finance Accelerator for Fund Managers (A4FM)](https://www.convergence.finance/accelerator/a4fm) en marge de la quatrième Conférence internationale sur le financement du développement (FfD4) qui se tient à Séville, en Espagne. Cette initiative de CAD$ 10 millions, d'une durée de huit ans, est financée par Global Affairs Canada (GAC) et mise en œuvre par Convergence Blended Finance. Elle vise à renforcer la capacité des gestionnaires de fonds et d'actifs canadiens et internationaux à participer au financement mixte en les offrant d'une formation sur mesure, de subventions catalytiques et d'une assistance à l'accélération nécessaires pour structurer et lancer des solutions de financement mixte. 

Le financement mixte, qui consiste à mobiliser des capitaux publics/philanthropiques pour attirer des investissements privés, est essentiel pour mobiliser des fonds pour les marchés émergents et en développement (EMDEs). En 2024, les fonds mixtes [ont mobilisé](https://www.convergence.finance/resource/state-of-blended-finance-2025/view) 5,1 milliards de dollars, les investisseurs institutionnels représentant 50 % des engagements du secteur privé, ce qui souligne le fort potentiel des gestionnaires de fonds et d'actifs à tirer parti de la finance mixte pour le développement durable.

L'accélérateur répond aux besoins spécifiques de deux groupes cibles:
- __Les gestionnaires d'actifs institutionnels__ qui cherchent de plus en plus à diversifier leurs portefeuilles tout en obtenant un impact et des rendements ajustés au risque dans les EMDE.
- __Les gestionnaires de fonds émergents__, en particulier ceux qui opèrent sur des marchés naissants, qui ont besoin d'aide pour se développer et structurer des opportunités d'investissement à fort impact et atteindre une certaine échelle.
 
L'accélérateur contribuera à renforcer les capacités de ces deux groupes cibles afin de générer une traction plus tôt et d'accélérer le déploiement sur le marché de leurs solutions de financement mixte. Pour garantir la résilience et l'efficacité à long terme, les investissements dans les pays émergents doivent être guidés par une approche intégrée de l'impact et de l'égalité des sexes, qui sera au cœur du programme. L'Accélérateur mettra également l'accent sur le renforcement des connaissances et des compétences des gestionnaires d'actifs canadiens, afin d'accroître leur participation aux investissements dans les EMDE en utilisant le financement mixte comme outil de structuration. 

Le programme A4FM se compose de trois éléments intégrés : 
1. __Renforcement des compétences des gestionnaires de fonds et d'actifs canadiens et internationaux__ 
Sessions offrant un aperçu pratique des structures de financement mixte, y compris les tendances, les études de cas et les modules d'apprentissage par les pairs: 
- [Session de formation virtuelle pour les gestionnaires de fonds et d'actifs](https://www.convergence.finance/calendar/7dG7LTSEMIr8KCBgzYQlPc/view)
- [Manifestations d'intérêt pour des sessions de formation au Canada destinées aux gestionnaires de fonds et d'actifs canadiens (automne/hiver)](https://docs.google.com/forms/d/e/1FAIpQLScHyG4zXcKhQ7RVRBiUcsOMK9RGUOr4VyS3wQF3A0TiAgsNKA/viewform?usp=preview)
2. __Subventions catalytiques pour définir, concevoir et lancer des solutions de financement mixte__
Subventions comprises entre $200 000 et $500 000 CAD, pour soutenir le développement de solutions de financement mixte, depuis la définition du champ d'application et la validation du concept jusqu'au lancement et à l'atteinte de la taille cible. 
3. __Soutien à l'accélération__
Soutien personnalisé à l'accélération par le biais de formations spécialisées, de données et d'analyses, d'opportunités d'apprentissage par les pairs, de création de réseaux et d'autres activités d'assistance technique. 

__Rejoignez Convergence et Affaires mondiales Canada pour un [lancement virtuel](https://www.convergence.finance/calendar/2jobmhkAxJFO5xatuq0Uy7/view) et un appel à propositions sur le site de la Commission européenne.__

__Citations:__ 
"Le Canada est fier de s'associer à Convergence, un partenaire canadien et un chef de file mondial en matière de financement mixte. Grâce à la combinaison unique du financement stratégique de ce projet et du mentorat, de la formation et de l'encadrement offerts par le Canada, nous pouvons créer de nouvelles possibilités d'investissement dans les pays en développement. Ensemble, nous pouvons accroître la mobilisation des capitaux afin de créer un marché ouvert aux femmes et d'améliorer les moyens de subsistance des communautés mal desservies dans les pays en développement". 
— *L'honorable Randeep Sarai, secrétaire d'État au développement international* 

"L'A4FM est unique pour deux raisons : premièrement, il s'agit d'une approche ciblée du défi insoluble que représente la constitution d'une réserve d'opérations dans le domaine du financement mixte, en aidant les gestionnaires d'actifs et de fonds à le faire ; deuxièmement, il offre à ces gestionnaires d'actifs et de fonds une gamme complète de soutien, allant de la formation et du financement par subvention à la constitution de réseaux et à l'assistance technique", déclare Joan Larrea, Directrice Générale de Convergence. "Nous sommes reconnaissants au gouvernement du Canada pour son leadership dans le domaine de la finance mixte et pour le soutien considérable qu'il apporte à l'A4FM."

"Les flux d'investissements commerciaux restent nettement inférieurs à ce qui est nécessaire pour une croissance économique durable dans les pays émergents, les risques macroéconomiques dissuadant les investisseurs institutionnels. Parmi les acteurs privés, les gestionnaires d'actifs, les sociétés de capital-investissement et de capital-risque ont représenté 21 % des opérations de financement mixte au cours de la dernière décennie. Destiné à apporter un soutien à différentes étapes, l'accélérateur permettra aux gestionnaires de fonds/d'actifs de concevoir rapidement des structures mixtes et de les développer, facilitant ainsi l'investissement dans les pays émergents", déclare Leah Pedersen, directrice principale de l'accélérateur de financements mixtes chez Convergence.

__À propos de Convergence__ 
Convergence est le réseau mondial de la finance mixte. L'accélérateur de financement mixte de Convergence soutient les praticiens du financement mixte avec des subventions de conception, un soutien à l'accélération et des informations sur le marché pour définir, structurer et lancer de nouvelles solutions de financement mixte qui débloquent des investissements commerciaux pour accélérer le développement durable dans les marchés émergents. 
En plus de l'accélération du marché, Convergence génère, par le biais de son Accélérateur de financement mixte, des données, des informations et des flux de transactions pour accroître les investissements du secteur privé dans les pays en développement. Convergence compte parmi ses membres plus de 160 investisseurs publics, privés et philanthropiques, ainsi que des promoteurs de transactions et de fonds.

__À propos d'Affaires mondiales Canada__ 
Nous définissons, façonnons et défendons les intérêts et les valeurs du Canada dans un environnement mondial complexe. Nous gérons les relations diplomatiques, favorisons le commerce international et apportons un soutien consulaire. Nous dirigeons les efforts de développement international, d'aide humanitaire et d'assistance à la paix et à la sécurité. Nous contribuons également à la sécurité nationale et au développement du droit international.

__Media Contact__ 
Sijia Yi 
Head of Communications 
Convergence 
sijia.yi@convergence.finance

Convergence and Canada have launched the Blended Finance Accelerator for Fund Managers (A4FM), aiming to aims to strengthen the capacity of Canadian and global fund and asset managers to participate in blended finance.

Convergence & Canada launch Blended Finance Accelerator

Convergence and Canada launch Blended Finance Accelerator for Fund Managers (A4FM) at the 4th International Conference on Financing for Development (FFD4) in Sevilla

The Blended Finance Company (TBFC) is a full-stack service provider for blended finance transactions enabling commercial investors to deploy significant capital while generating sustainable returns, and concessional funders to maximise their catalytic leverage.

We spoke to Nirav Khambhati, Partner at the Blended Finance Company about how they engage in blended finance, gaps and opportunities for blended finance in Asia, advice for those wanting to engage in blended finance, and more.

__1. Can you tell us about the TBFC’s mission and how it engages in blended finance?__ 
TBFC exists to reduce the Sustainable Development Goals (SDG) funding gap by changing how capital is mobilized and utilized in the development sector. Our mission rests on a two-fold approach.
First, we focus on increasing the volume of commercial capital flowing into development efforts. We do this by deploying government and philanthropic capital catalytically, creating structures that improve the risk-return profile for private investors in otherwise underserved sectors and markets.

Second, we enhance the effectiveness of government and philanthropic capital by shifting the emphasis from inputs to outcomes. We help public and philanthropic funders design more strategic, results-focused interventions that drive systemic change.

Finally, TBFC serves as an end-to-end mobilizer—providing everything from transaction feasibility assessment and structuring to fundraising, execution, and lifecycle management. A critical part of our value lies in convening the right stakeholders, whose aligned participation is essential for blended finance transactions to materialize. We serve four core stakeholder groups, including governments, donors and philanthropic institutions, investors, and enterprises (for-profit and non-profit).

__2. What type of blended finance transactions or structures has your team been involved in recently? Any transactions you’re particularly proud of?__ 
In less than two years , our team has already enabled blended finance transactions across a wide range of sectors including livelihoods, climate, agriculture, health, and education. We’ve designed diverse instruments tailored to specific challenges, including guarantees, subordinated debt, technical assistance, impact-linked incentives, outcome-based funding, pooled philanthropic facilities, and investment platforms, among others.

Some of our most meaningful transactions have tackled long-standing financing barriers for underserved segments, such as unlocking credit for students from low-income families and supporting women entrepreneurs through de-risked lending models. In each case, we have used blended structures to shift incentives, reduce risk, and increase confidence in these segments as viable investment opportunities. 

One example is Aspirational Pathways for Youth Readiness and Employment (ASPYRE) a first-of-its-kind Skill Loan Facility that provides youth from low-income households with access to affordable credit to pursue market-relevant skill development programs. TBFC played an end-to-end role in designing and enabling this initiative. We began by deeply understanding the barriers to credit access for skilling, then structured a financial product that aligns the incentives of students, training providers, financial intermediaries, and philanthropic funders. We shortlisted mission-aligned partners, mobilized philanthropic capital for credit enhancement, and created a templatized approach that allows for efficient onboarding of new stakeholders. ASPYRE is now live and already benefitting underserved youth, with additional training providers, lenders, and philanthropic contributors continuously joining the platform.

We also find ourselves increasingly involved in outcome-focused initiatives such as those aimed at creating aspirational livelihoods for youth or scaling regenerative agriculture practices. These efforts often rely on instruments like outcome-based funding or impact-linked incentives that help improve accountability and align funding with results.

Another area of pride is expanding the blended finance ecosystem by bringing in new participants, especially local actors, such as a regional bank, a philanthropic trust, or a grassroots enterprise.

__3. Based on the Blended Finance Company’s involvement in blended finance, what gaps or opportunities do you see in the overall blended finance market in Asia?__ 
__First, there is limited understanding of blended finance among key local stakeholders, particularly subnational governments and local philanthropic actors.__ Wealthy individuals and family foundations in the region tend to operate at either end of the spectrum: they provide traditional grants or make impact investments expecting market-rate returns. The middle ground, where capital can be structured to optimize the trade-off between impact and financial returns, is often misunderstood or overlooked. There is a significant opportunity to engage this segment through targeted education, demonstration projects, and collaborative structuring that show how blended finance can amplify the effectiveness of their capital.

__Second, Asia needs more entities that can hold blended finance transactions end-to-end.__ Blended transactions involve diverse stakeholders, without a trusted intermediary who can align incentives, bridge communication gaps, and manage the transaction lifecycle, deals often stall or become too expensive and complex to execute. This is a role TBFC was purpose-built to play.

__Third, there is a shortage of clear, replicable, and efficient transaction models that donors and investors can easily plug into.__ Many transactions in Asia are still bespoke, overly complex, or tied to a single sector or geography. This raises costs and limits replicability. There is a significant opportunity to standardize structures, making them easier for capital providers to understand and engage with.

__Fourth, there is a need for a continuously curated pipeline of investible opportunities that are suitable for blended finance.__ A major bottleneck in sustaining stakeholder interest is the sporadic or opportunistic nature of deal flow. Governments, investors, and philanthropies are more likely to participate if they see a steady, credible pipeline of high-quality, impact-aligned, financially viable projects. Building this pipeline requires intentional effort, ecosystem engagement, and patient capital to support project preparation and design.

__4. What advice would you give to other organizations looking to enter or scale their efforts in blended finance?__ 
- __Always start with the problem__—not the capital. We often see organizations raise capital first, then search for problems to solve. The right starting point is a clearly defined problem that genuinely warrants the blending of different forms of capital—typically where risk-adjusted returns alone cannot attract sufficient private investment, but catalytic capital can make the economics work. 

- __Recognize that blended finance is still maturing as a market—it will become simpler and faster over time, but it’s not there yet.__ Blended finance transactions are complex, involving multiple stakeholders with different mandates, timelines, and constraints. Organizations that expect quick wins or look for silver bullets often end up disillusioned. 
- __Have a deep understanding of each partner’s motivations and constraints.__ One of the most overlooked aspects of blended finance is empathy—being able to see a transaction through each stakeholder’s lens, and structuring deals accordingly. The best blended finance practitioners are not just dealmakers—they are relationship stewards.
- __Commit to building the market—not just individual deals.__ There is a growing need for more actors who invest in knowledge sharing, ecosystem advocacy, and coalition building. Each transaction should not just solve a specific problem—it should also advance the field. 

__5. How do you incorporate gender considerations into your blended finance transactions?__ 
At TBFC, gender equality is deeply embedded in how we define problems, design solutions, and structure transactions. Over half of our transactions are explicitly targeted at advancing outcomes for women; in others, gender inclusion is a critical lens through which we assess broader development impact.

One initiative underway at TBFC brings affordable credit to women entrepreneurs, enabling them to build financial resilience in the face of increasing climate risks. The structure leverages catalytic capital to de-risk lending to women in sectors historically underserved by mainstream finance—combining access to capital with the capacity to withstand environmental shocks.

Even in transactions where gender is not the exclusive focus, it is a core design principle. For example, in an impact bond aimed at creating employment opportunities, we embedded specific targets and incentives to ensure high participation of women, especially in non-traditional sectors. 

Ultimately, we see gender inclusion not just as a moral imperative, but as smart development practice. When women are economically empowered, the benefits multiply across households, communities, and generations. Blended finance, with its ability to align capital with intentional design, offers a powerful mechanism to accelerate this transformation.

__6. Looking ahead, what’s next for the Blended Finance Company in 2025 and beyond?__ 
 Our foremost priority is ensuring the blended finance transactions we are currently stewarding deliver on their promise.

We believe that blended finance can unlock far greater capital flows. This fuels our ambition to take on larger and more complex transactions, including in outcome-based financing, where we believe there is significant room for scale and innovation.

Looking ahead, we intend to explore new frontiers where blended finance can be catalytic, such as __voluntary carbon markets__, __municipal finance__, and __social bonds__. 

This year we will also be expanding our work beyond India to other emerging markets. These regions face similar development challenges and share a need for localized, trusted intermediaries who can bridge the gap between capital and impact. 

Finally, we will continue to nurture the broader blended finance ecosystem. In 2024, we seeded the __Blended Finance Exchange (BFX)__ in India, a semi-formal gathering space for practitioners, funders, and policymakers to learn from one another and shape the field collectively.

__7. What emerging trends do you think we will see in blended finance in the future?__ 
One key trend we foresee is __the institutionalization of blended finance within public systems__. Governments, especially in the Global South, are starting to see blended finance not as a one-off innovation, but as a structural tool for financing development. As this mindset takes hold, we expect more formal policies, dedicated funding windows, and internal capabilities to emerge, enabling wider and more consistent adoption.

We also expect a __bifurcation in the market__, with transaction sizes increasing significantly at the upper end, while experimentation continues to grow at the frontier. Large-scale programs, particularly in areas like climate resilience, sustainable infrastructure, and health systems, will increasingly use blended structures to unlock private capital. Simultaneously, we will see newer, nimbler structures being tested to address complex and underexplored issues. Both trends are important: scale brings visibility and momentum, while experimentation fuels innovation and adaptability.

Another important shift we expect to see is __the evolution of grant-making institutions__. As the field matures, we believe more foundations, Corporate Social Responsibility arms, and development donors will embrace this middle path and use their capital catalytically.

Finally, as blended finance becomes more accessible and predictable, it will __catalyze a new generation of social enterprises and impact initiatives__. Entrepreneurs and organizations that may have previously struggled to find sustainable business models will have access to better-structured, more affordable capital. This will unlock innovation, scale, and long-term resilience, especially in areas where commercial capital has historically shied away.

We believe blended finance is foundational to solving the complex, large-scale challenges that define our time. We’re excited to contribute to this future by helping shape the market, build trust among stakeholders, and demonstrate what’s possible when capital is blended with care, creativity, and purpose.

Learn how the Blended Finance Company engages in blended finance, gaps and opportunities for blended finance in Asia, advice for those wanting to engage in blended finance, and more.

The Blended Finance Company Member Spotlight

The Blended Finance Company Member Spotlight with Nirav Khambhati

As sea-levels rise, so does the urgency to act — yet the capital required to protect our marine ecosystems and coastal communities is barely trickling in.

Oceans generate an estimated $2.5 trillion in economic value each year, supporting the livelihoods of over 3 billion people, while the SDG14 — Life Below Water — receives less than 1% of global climate finance. Coastal communities face the most immediate climate risks — coastal erosion, extreme weather, biodiversity loss — yet remain underinvested.

This week, the UN Ocean Conference 2025 in Nice, France, will set an ambitious goal: to mobilize $100 billion in new ocean financing to advance a more resilient blue economy. But the critical question remains — where will this capital come from? As the most recent edition of the [State of Blended Finance 2025 outlines](https://www.convergence.finance/resource/state-of-blended-finance-2025/view), in a global context of declining foreign aid, efforts to preserve marine ecosystems and scale climate adaptation in coastal regions must increasingly look inward to domestic capital. 

By aligning international capital with local market realities, blended finance is uniquely positioned as a structuring approach to not only to unlock foreign investment, but to activate domestic financial resources by supporting local institutions and markets, fostering long-term resilience, and scaling adaptive climate solutions driven by frontline communities.

__Local Capital on the Sidelines: An Untapped Opportunity for Adaptation__ 
Local market actors in coastal countries such as domestic financial institutions, regional development banks, insurance companies, and pension funds collectively manage billions in assets — yet only a fraction is directed toward blue economy or climate resilience investments. These projects are perceived as high-risk, with a limited pipeline of investable, well-structured coastal adaptation projects.

There is also a mismatch in time horizons: capital providers often seek returns in the short to medium term, whereas infrastructure and ecosystem restoration require long timelines to generate measurable impact and reliable revenue.

Compounding this is the lack of mature revenue models for nature-based solutions tied to SDG 14, making it harder to draw in capital. As a result, many projects remain overly dependent on international donors or substantial concessional financing, which can undermine long-term sustainability and dilute local stewardship. To truly scale resilient, climate-smart solutions along the coast, local capital must be unlocked — not only to close the financing gap, but to build accountability amongst the communities, contextual relevance for the solutions, and a sustainable impact.

__Blended Finance Approaches to Mobilizing Local Capital in the Blue Economy__ 
In 2018, the [Seychelles Blue Bond](https://www.worldbank.org/en/news/press-release/2018/10/29/seychelles-launches-worlds-first-sovereign-blue-bond), the world’s first sovereign blue bond, pioneered a model for financing climate-smart fisheries while laying the groundwork for local capital mobilization. Though its investors were international, the bond channeled proceeds through local institutions and supported domestic financial infrastructure—strengthening local investment capacity and creating a replicable model for national investment in ocean sustainability. A few years later in 2022, the [Fiji Sovereign Blue Bond](https://www.undp.org/pacific/press-releases/launch-fijis-first-ever-sovereign-blue-bond) employed a more direct approach to mobilizing local capital, explicitly structuring the bond to be accessible to domestic investors, including local banks and financial institutions. The bond was accompanied by the Blue Accelerator Grant Scheme (BAGS), a strategic grant-to-investment accelerator, providing capacity-building, impact finance, and structured de-risking to convert locally-developed blue economy projects into investable businesses.

Other successful examples include the [The Meloy Fund](https://www.meloyfund.com/), which blends concessional capital with private investments from high-net-worth individuals and family offices in Southeast Asia for loans to small-scale fishers and other community actors. Another by the [Global Fund for Coral Reefs](https://globalfundcoralreefs.org/), actively seeks co-investment and syndication with local financial institutions for reef-positive projects, businesses and Special Purpose Vehicles. And finally, The [Blue Alliance Blended Finance Facility](https://bluealliance.earth/our-blue-finance-facility/) encourages local financial institutions and investors to participate in funding sustainable blue economy initiatives by de-risking businesses through grants and impact debt capital. Profits generated from these businesses are reinvested into regional Marine Protected Areas, creating a self-sustaining model that supports locally-led coastal biodiversity preservation and livelihoods.

__How to Build Local Climate Finance Capacity in Coastal Regions__ 
Scaling climate-resilient blue economy solutions requires a concerted effort to mobilize local capital through thoughtfully-structured blended finance. Donors and development finance institutions and multilateral development banks should design investment vehicles that intentionally crowd in domestic actors with concessional tranches, guarantees, and technical assistance to lower entry barriers. They can also collectively drive the appropriate frameworks and guidelines for blue economy investments, such as the [International Finance Corporation’s practitioner’s guide on blue bonds](https://www.ifc.org/en/pressroom/2023/new-guidance-on-blue-bonds-to-help-unlock-finance-for-a-sustainable-ocean-economy) created in collaboration with the International Capital Markets Association, United Nations Environment Programme Finance Initiative, UN Global Compact and the Asian Development Bank.

National and subnational governments also play a vital role by providing tax and regulatory incentives to local investors—as seen in [Fiji’s Green Bond exemptions](https://ndcpartnership.org/knowledge-portal/good-practice-database/pioneering-green-finance-developing-world-fijian-sovereign-green-bond)—and by mandating local development banks to prioritize blue and adaptation finance.

Meanwhile, philanthropies and ecosystem partners can support the ecosystem by funding early design work, creating replicable project models, and convening local stakeholders to build capital stacks that align with their risk appetite. An example is Ocean Risk and Resilience Action Alliance (ORRAA), recently announcing grants to be deployed under the [Outrigger Technical Assistance Facility](https://oceanriskalliance.org/news/investable-sustainable-blue-economy-projects-boosted/?utm_source=chatgpt.com) to support early-stage regenerative and sustainable blue economy businesses across 35 Small Island Developing States.

These initiatives together can create the enabling conditions for long-term, domestically-anchored climate finance. By engaging local capital, ocean finance can unlock greater capital flows and stronger local participation, creating solutions that are more sustainable, inclusive, and rooted in long-term community ownership of coastal and marine ecosystems.

__Join us at the upcoming [Global Blended Finance Forum](https://globalforum2025.convergence.finance/convergenceglobalforum2025/7697519) in Washington DC November 3-5 2025, where we’ll delve into local capital mobilization and other key challenges shaping the future of blended finance. [Register now](https://globalforum2025.convergence.finance/convergenceglobalforum2025/begin)!__

Blended Finance in the Blue Economy: How Local Capital Can Boost Coastal Resilience

Blended Finance in the Blue Economy

Since our inception, Convergence has been committed to gender equality. However, it took a push from our funders the Australian Department of Foreign Affairs and Trade (DFAT) and Global Affairs Canada (GAC)’s for us to become more intentional and concrete about how we integrate gender equality in our work. In early 2020, with support from DFAT, we were able to train our entire staff on gender equality and gender-lens investing and develop a dedicated strategy for gender internally. GAC, through its [Feminist International Assistance Policy](https://www.international.gc.ca/world-monde/issues_development-enjeux_developpement/priorities-priorites/policy-politique.aspx?lang=eng), also encouraged us to prioritize gender in our work, which led us to reassess our performance measurement framework to more holistically report against gender targets.

Now, gender equality and women’s economic empowerment are top of mind across nearly all levels of our organization, including how we [collect data on deals](https://www.convergence.finance/blended-finance#blending-trends), our [selection criteria](https://www.convergence.finance/design-funding#funding-windows) for grantees, and our [organizational culture](https://www.convergence.finance/about/people). 

Read our recently published [Convergence Gender Guide](https://www.convergence.finance/resource/advancing-gender-equality-in-blended-finance-convergences-approach/view), which goes into more detail about Convergence’s gender journey and how we have refined our gender approach over the years. The document discusses the intersection of blended finance and gender and shares how we have integrated gender across Convergence in our culture, knowledge products, communications, events, trainings, data, deal flow, grant programs, membership, and network.

Though this guiding document is primarily for our own staff to understand the importance of gender equality in what we do, we also hope it can be useful as a guide to others in the space who are just beginning their gender equality journey. The guide is a living document that will be updated regularly as we learn from our experiences and incorporate feedback from others in the gender equality and gender-lens investing space.

Read our recently published Convergence Gender Guide, which explores Convergence’s gender journey and how we have refined our gender approach over the years. 

Convergence’s Gender Equality Journey and Approach

Convergence will be at the [4th International Conference on Financing for Development (FfD4)](https://financing.desa.un.org/ffd4) from June 30 - July 3, 2025 in Seville, Spain. We will be hosting and participating in several events and meetings, which we have listed below. Be sure to follow us on [LinkedIn](https://www.linkedin.com/company/convergenceblendedfinance/) to stay up to date with our activities at the FfD4, and check back to this page as we keep it updated throughout the Forum.

__Convergence Delegation__
- Joan Larrea, CEO
- Christopher Clubb, Managing Director
- Mira Minkara, Senior Associate, Training and Engagement
 

__Events__ 

__Organized or co-organized by Convergence__

| Date & time (GST)	 | Event title | Organizer | Location | Details |
| ---------- | ---------- | ---------- | ---------- | ---------- |
| July	1, 12:30PM - 2:00PM | Scaling up private investment mobilization for Least Developed Countries, Small Island Developing States (SIDS) and other early-stage markets: The need for an action plan to deliver private capital mobilization objectives of the FfD4 Outcome Document | UNCDF, Convergence, EMIA | Side Event Room 17 | The event, cohosted by UNCDF and Convergence, will focus on how to deliver on the FfD4 Outcome Document’s goals to scale private investment and blended finance, particularly in Least Developed Countries (LDCs) and Small Island Developing States (SIDS) where perceived investment risks are highest. |
| July 2, 10:30 AM - 12:00 PM | Optimal private investment mobilization for Africa | Convergence, Equity Group and FSD Africa | International Business Forum (IBF):Madrid D | The event will be dedicated to how to achieve the mobilization objectives of the FfD4 Outcome Document and Agenda 2063, including identifying mobilization solutions that work well for African countries and discussing an action plan that could mobilize private investment at scale for all Developing Countries. |
| July	2, 10:30AM - 12:00PM | Scaling Private Investment Mobilization through Blended Finance | UN ECA, Convergence | Virtual | The session will bring together regional and global stakeholders to share insights on catalytic and concessional financing instruments that have proven effective in improving the risk-return profiles of African projects, Showcase replicable, investment-grade transaction models that align with Agenda 2063 priorities, particularly in infrastructure, green energy, and SME financing, and introduce a continental framework for private investment mobilization under the Sevilla Platform for Action, co-led by UNECA and Convergence, and discuss how PIDA pipelines can serve as a credible entry point. |
| July 2, 4:30 PM - 6:00 PM | Private investment mobilization for Africa: The need for an action plan to scale private investment mobilization to achieve objectives of the FfD4 Outcome Document and Africa Agenda 2063 | UNECA, African Union, OECD, Convergence | Side Event Room 18 | The event will be dedicated to how to achieve the mobilization objectives of the FfD4 Outcome Document and Agenda 2063, including identifying mobilization solutions that work well for African countries and discussing an action plan that could mobilize private investment at scale for all Developing Countries. |
| July 3, 8:30 AM - 10:00 AM | Private Investment Mobilization to achieve FfD4 Outcome Document mobilization objectives | FSD Africa, British International Investment, TCX, S&P Global Ratings, Convergence | Side Event Room 16 | This 90-minute event will (i) identify the key mobilization and blended finance content of the Outcome Document (e.g., country priorities, standardization, debt sustainability, share risk fairly, develop domestic financial markets..), (ii) showcase successful, good practice blended finance transactions and programs aligned to the Outcome Document and (iii) profile a set of standardized blended finance solutions that can be implemented to catalyse sustainable development investment at scale to close the financing gap with urgency. |

__Side events with Convergence's participation as speakers:__

| Date & time (GST)	 | Event title | Organizer | Location | Details |
| ---------- | ---------- | ---------- | ---------- | ---------- |
| June 30, 12:30PM - 2:00PM | Moving to the Trillions: Catalyzing Strategies to Increase Development Finance | Shamba Centre for Food and Climate, BMZ, SDC | Side Event Room 22 | The side event will explore innovative finance models that will increase the catalytic potential of overseas development assistance and significantly increase blended finance for sustainable development. |
| July 1, 2:30PM - 4:00PM | Catalyzing SDG Progress Through Technical Development and Private Investment Partnerships | GIZ | Side Event Room 15 | This panel discussion will explore the critical intersection between technical development assistance and private investment in accelerating progress toward the Sustainable Development Goals. |
| July 1, 4:30PM - 6:00PM | Innovations and Best Practices: Risk Sharing and Credit Enhancement Mechanisms | UNDESA | Madrid D (IBF) | Information to follow |
| July	2, 8:30AM - 10:00AM | Catalytic Pathways to Scale Private Investment: Improving access to catalytic capital | IFD, BCG | Side Event Room 8 | This will be an inclusive public-private dialogue to identify and implement practical and transparent strategies for scaling blended finance: examining tools, obstacles, and impact delivery. |
| July	2, 2:30PM - 4:00PM | Rethinking Disaster Risk Finance: Preparedness and Innovation for a Resilient Future | IFRC, Costa Rica, Fiji, Spain | Side Event Room 8 | Information to follow |
| July2, 5:30PM - 7:00PM | WaterAid Forum: Transforming water security through country-level platforms that get blended finance right: Just Water Partnerships | WaterAid, Global Commission on the Economics of Water (GCEW), IWMI and iCS | Caixa Forum Sevilla | Information to follow|
| July	3, 8:30AM - 10:00AM | Stability: Private Finance for Resilient Growth | Clarmondial, Convergence, Nestle, Gates Foundation | Side Event Room 6 | Information to follow |

Convergence at Financing for Development Forum (FfD4)