This report, prepared by Itad for the Foreign, Commonwealth and Development Office (FCDO) and British International Investment (BII), provides insights into how development finance institutions (DFIs) and multilateral development banks (MDBs) are using various financial instruments and structures to mobilize private capital. It presents practical examples and operational considerations aimed at helping the development finance community translate ambition into concrete action.

To enhance their impact, the report recommends that DFIs:
1. Expand origination and portfolio management capacity to handle higher investment volumes, with the goal of sharing a greater portion of assets with private investors.
2.  Shift focus from single-asset to multi-asset mobilization structures that align better with the preferences of institutional investors.
3.  Design co-investment opportunities with appropriate levels of risk mitigation, leveraging a mix of concessional and commercial finance where needed and available.

Opportunities for DFIs to scale private capital mobilisation: Structures and tools

Itad