Scaling Blended Finance: Practical Tools for Fund Design
In this joint guide, British International Investment (BII) and Boston Consulting Group distil insights from an analysis on 65 blended‑finance funds and BII’s own experience of deploying US $2 billion in blended finance. They introduce two practitioner tools: (1) a five‑archetype typology that clusters funds by purpose (pioneering impact vs. mobilisation at scale), institutional risk appetite, and underlying asset risk, and (2) a three‑dimension scorecard that tests whether a proposed structure has a compelling rationale, appropriate waterfall, and strong stakeholder alignment. The aim is to shorten structuring timelines, cut transaction costs, and create reference points that make blended‑finance funds more replicable, critical for attracting private institutional capital to climate and SDG‑aligned investments in emerging markets.
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British International Investment is the UK's development finance institution and impact investor, backed by the UK Government. With over 75 years’ experience, it is a trusted investment partner to businesses in Africa, Asia and the Caribbean. It invests to create more productive, sustainable and inclusive economies. It currently partners with nearly 1,500 businesses, working with its investees to help them succeed and grow impactful businesses.
Boston Consulting Group is a global consulting firm that partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. Since its founding in 1963, BCG has been a pioneer in business strategy. Today, they work closely with clients to empower their organizations to grow, build sustainable competitive advantage, and drive positive societal impact.