What is blended finance? Convergence CEO Joan Larrea admits she didn’t always know, and many others don’t either.
When I meet counterparts from development banks, philanthropic institutions, and the private sector, I find there’s still confusion about what exactly blended finance is. Where does it fit in the landscape of impact investing? How does it differ from the development finance that the World Bank Group and other multilateral institutions have been doing for decades?
This feature in ImpactAlpha breaks down the term, discussing the three signature markings of a blended financial deal, and makes a case for simplicity in finance.