Giving Compass’ Take:
• Joan Larrea discusses how blended finance is a solution that can ease those challenges and motivate institutional investors to get involved in achieving the SDGs.
• Are international development experts looking toward blended finance models over government funding? Is this a more sustainable pool of funds?
Institutional investors have trillions of dollars in financial assets under their control. Getting them to invest more of that capital in high impact projects in emerging markets could lead to massive progress towards achieving the UN’s Sustainable Development Goals. But there are significant challenges that often prevent those institutional investors from moving capital in that direction.
What is blended finance?
Convergence CEO Joan Larrea says her organization defines blended finance as, “the use of catalytic capital to increase private sector investment in sustainable development.”
How can public and philanthropic capital catalyze private sector investment in sustainable development solutions in emerging markets? In the latest Money and Meaning, Convergence CEO Joan Larrea answers that question in plain language and provides concrete examples of blended finance in action, including a deal that helped move money into life-saving clean drinking water and sanitation projects in South Asia.
Convergence is the global network for blended finance. With their focus on emerging economies, Convergence aims to drive private sector investment (from both impact investors and institutional investors) where it is needed most. In this episode, Larrea, whose expertise was honed over two decades of experience in private equity and international development investing, explains how blended finance can accelerate solutions to poverty, hunger, and the other SDGs. She also talks about the future of the blended finance industry and why we need to “really hustle” to get on a billions to trillions trajectory if we are to achieve the SDGs on time.
Read the full article about blended finance by Joan Larrea at Social Capital Markets.
Impact Investing is a complex topic, and others found these selections from the Impact Giving archive from Giving Compass to be good resources.
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