- Simplification breakthrough: BII and BCG’s toolkit simplifies blended finance design, addressing key complexity barriers deterring private investment.
- Market clarity: Over 90% of blended finance funds analyzed fit five archetypes, offering fund managers practical templates to attract capital.
- Investor alignment: A new scorecard standardizes quality assessments, aligning blended fund design with diverse investor goals.
British International Investment (BII) and Boston Consulting Group (BCG) have launched a new framework designed to make blended finance funds significantly more attractive to private investors, unlocking billions in capital for emerging markets and climate action.
Blended finance structures—those that combine public, philanthropic, and private capital—are vital for advancing sustainable development and climate resilience in markets traditionally overlooked by commercial investors. Yet despite their potential, these structures have only drawn around $15 billion per year globally, primarily due to their complexity and high setup costs.
“Our report identifies how a blended finance fund can be a made-to-measure proposition, rather than a bespoke proposition that understandably is off-putting to all but the most devoted impact investors,” said Leslie Maasdorp, Chief Executive of BII.
The new report, Scaling Blended Finance, introduces two key tools:
- A fund typology, which classifies over 90% of existing blended finance funds into five clear archetypes based on fund purpose, investor risk appetite, and underlying asset risk.
- A scorecard, which provides a consistent method for evaluating the structural integrity of blended funds and how well they balance investor priorities.
These tools aim to provide clarity for both commercial and concessional investors, offering a structured reference for fund managers during design and capital raising.
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“Scaling blended finance isn’t just a technical challenge—it’s a systems challenge. These tools bring structure to that complexity and offer fund managers and investors a shared language to accelerate progress,” said Rich Hutchinson, Global Head of Social Impact at BCG.
By aligning design practices with the expectations of institutional investors, BII and BCG hope the toolkit will significantly lower the barrier to entry for private capital and drive high-integrity investment into the sectors and regions most in need.
The report positions blended finance not as a niche solution, but as a scalable engine for impact—if structured for simplicity and investor clarity.
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