Investing for Impact IMPACT = Using blended finance to increase private capital in emerging markets
May 20, 2025
Joan Larrea, CEO of Convergence and a leader in blended finance, discusses the urgent need for private capital in emerging markets as public development budgets shrink. She breaks down blended finance, emphasizing its potential to align commercial and concessional funds to drive sustainable development. The conversation covers the challenges of investing in the global south and strategies to de-risk these investments. Joan also reflects on the future of international development post-USAID, highlighting the necessity for innovative partnerships and approaches.
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Blended Finance Unlocks Investment
- Blended finance uses concessional capital alongside commercial capital to enable investments that wouldn't happen otherwise.
- It balances risks and rewards to promote sustainable development goals in emerging markets effectively.
Convergence's Role in Blended Finance
- Convergence operates as a global network to educate, connect, and accelerate blended finance deals globally.
- It provides data-driven insights and fosters collaboration across diverse financial and developmental organizations.
DFIs Drive Blended Finance Growth
- Development Finance Institutions play a major catalytic role in blended finance, backing about 70% of transactions.
- Blended finance remains a small but powerful segment of official development assistance, with growing transaction volumes.