The Scale Private Investment Mobilization Project
Mobilizing private investment at scale through standardization to finance the SDGs and climate action in developing countries.
About the Project
The Scale Private Investment Mobilization Project was set up to define an Action Plan to help blended finance and private investment mobilization deliver on their potential. The aim is to scale up proven investment models that deliver impact and investment at scale. The Action Plan is a practical, comprehensive approach to achieve the private investment mobilization objectives and standards of the Financing for Development 4 Outcome Document. The proposed Action Plan is grounded in Convergence’s empirical review of around 1,500 blended finance transactions and consultations with more than 100 stakeholders across developing countries, OECD Development Assistance Committee countries, multilateral development banks, development finance institutions, philanthropic foundations, and private investor groups. A significant part of the Action Plan is the proposed package of 12 Private Investment Mobilization Models (PIMMs) identified by Convergence and others as the most effective and efficient way to standardize and scale SDG and climate investment in developing countries. Together, these 12 PIMMs provide a standardized and scalable roadmap for mobilizing private investment and identify how donors and developing country governments can best utilize their scarce financial resources to catalyze private capital. Convergence will continue to lead an extensive consultation process through 2025, engaging with key global stakeholders to finalize the Action Plan and final package of PIMMs.
The Slide Deck
A slide deck offering a high-level overview of the Project and Action Plan
The Consultations Report
A more detailed overview of the Project and Action Plan
| Increase Number of Viable Projects | Increase Investability of Projects | Increase Investability at Portfolio Level (e.g., fund) | Develop Domestic Financial Sector | Mitigate FX risk | |
|---|---|---|---|---|---|
| Public Sector Project / Operation | Public Sector Project Preparation Facilities (PIMM1) | Public Sector Blended Finance Debt Funds (PIMM9) | Local Currency Solutions (PIMM12) | ||
| Private Sector Project / Operation | Private Sector Project Development Funding (PIMM2) | Value Chain Financing (PIMM4) Guarantees (Project Level) – Private Sector (PIMM5) Political Risk Insurance (Project Level) – Private Sector (PIMM6) Buyer / Off-taker Mitigation (PIMM7) Risk Sharing with Financial Intermediaries (PIMM8) | Private Sector Blended Finance Debt Funds (PIMM10) Private Sector Blended Finance Equity Funds (PIMM11) | Domestic Financial Sector Development – Private Sector (PIMM3) |
PIMM1 is designed to increase the supply of catalytic and concessional funding to support public sector entities to develop public sector projects to be fully viable. PIMM1 will increase the universe of viable projects.
PIMM2 is designed to increase the supply of catalytic and concessional funding to support private sector entities to develop private sector projects to full viability. PIMM2 will increase the universe of viable projects.
PIMM3 is designed to improve the domestic financial sector and capital markets through a higher quantity and quality of investment to the sector and individual intermediaries.
PIMM4 is designed to increase the supply of debt/loan financing to smallholders, micro, small and medium enterprises and mid-caps supplying goods and services to larger companies through value chain financing. The financing can occur through two channels: (i) financial intermediaries or (ii) real-economy companies.
PIMM5, along with PIMM9 and PIMM10, is designed to deliver the most important driver of private investment mobilization at scale – investment grade (BBB) ratings: PIMM5 will produce BBB-rated guarantors that provide BBB guarantees for loans/bonds at a project level.
PIMM6 is designed to increase the universe of political risk insurance providers to reduce investment risk within investors’ fiduciary and regulatory investment mandates, mobilizing them to invest in developing countries.
PIMM7 is designed to increase the supply of buyer/off-taker guarantees/insurance to reduce investment risk within investors’ fiduciary and regulatory investment mandates, mobilizing them to invest in developing countries.
PIMM8 is designed to increase the supply of portfolio loan guarantees to stimulate more lenders to lend in developing countries.
PIMM9, along with PIMM10 and PIMM5, is designed to deliver the most important driver of private investment mobilization at scale – investment grade (BBB) ratings: PIMM9 will aggregate public sector sovereign credit risk in a portfolio/fund, capitalized with three tiers of capital, with senior capital rated investment grade (BBB).
PIMM10, along with PIMM9 and PIMM5, is designed to deliver the most important driver of private investment mobilization at scale – investment grade (BBB) ratings: PIMM10 will aggregate private sector credit risk in a portfolio/fund, capitalized with three tiers of capital, with senior capital rated at investment grade (BBB).
PIMM11 is designed to mobilize fund managers (e.g., general partners) to establish new funds for investing equity in developing countries and mobilize private investors (e.g., limited partners) to invest in the senior capital of the fund. PIMM11 is intended to be the main PIMM to mobilize private investment in the form of equity to developing countries.
PIMM12 is designed to reduce foreign exchange risk for countries, borrowers, projects, and investors.
We want to hear from you
No one organization or group has a monopoly on optimal blended finance and mobilization. Convergence has consulted widely in the first half of 2025 and will continue to consult over the next months to improve the Action Plan and recommendations. We encourage all interested parties to complete the 10-minute survey, which is tailored to different types of organizations. Convergence and the Project Advisory Group will use the consultations and survey responses to improve the proposed Action Plan and standardized models.
Funders
