Blended finance has proven its potential to mobilize private investment for sustainable development, yet it remains at times constrained by challenges related to complexity, high transaction costs, and replicability. To address these challenges, Convergence has led a groundbreaking report focused on standardizing blended finance structures to improve efficiency, reduce risk, and unlock capital at scale. This project identifies a set of Private Investment Mobilization Models (PIMMs) that streamline financing structures, enabling investors and development finance institutions to deploy capital more effectively.

Key Discussion Areas:

• Why standardization matters: How a common set of blended finance models can increase efficiency, reduce transaction costs, and scale mobilization.
• Insights from Convergence’s work: Key lessons learned from developing and market testing of standardized Private Investment Mobilization Models (PIMMs).
• What makes a good standardized model? Examining critical features such as risk-sharing, governance, and alignment with investor mandates.
• Next steps for adoption: What is needed from policymakers, funders, and market actors to make standardized blended finance models the norm?