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We need more private capital for sustainable development. The good news: We increasingly know the blends that can attract it.
To build its $150 million private equity fund to invest in frontier markets, Sarona Asset Management leveraged public funding to lower risks and thus attract private investors. That “blended finance” model is becoming increasingly important in mobilizing private capital to meet 21st-century challenges as articulated in the 17 U.N. Sustainable Development Goals.
Private capital can indeed deliver public goods. We need much, much more capital from individual, institutional and other commercial investors to fill the estimated $2.5 trillion annual gap in financing for sustainable development. The good news: We increasingly know the blends that can attract it.