Blended Finance
22:59
Welcome to the Frederic Michel Verdier blog. Frederic Michel Verdier is a Funds veteran specializing in infrastructure equity investments and asset management. In today's blog, Frederic shares blended finance: what is it, what it isn’t and how to use it for maximum impact. Let's get started!
Blended finance is the term for impact investing. It's the strategy on which the impact investing industry is pinning its hopes to achieve the elusive goal of scale. But while it's popular to talk about, it's less popular to practice. It has also several different definitions, but at its core, "to blend" means to mix in concessionary capital that will reduce the difference between the perceived risk and the real risk of a deal, thereby incentivizing additional private investment.
Blended finance is a term that's used casually but needs to be enacted specifically. Like any investment, it requires a deep understanding of finance and market context. The success of blended finance hinges on catalytic capital providers embracing their role and playing it strategically. It is both an art and a science and involves not only structuring for an individual deal effectively but also for the broader market.
1 comments
Great post from Frederic Michel Verdier - I found it really interesting!
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