Convergence: Blending Global Finance
Description
Convergence is a platform that brings together public and private investors for blended finance investments in emerging and frontier markets.
Convergence will be comprised of three core offerings:
1) The New Product Design Facility will allow investors and intermediaries to design and enhance blended finance products through collaborative workshops, grant funding, and the dissemination of learnings;
2) The Market Building Tools will help investors improve their blended finance awareness, understanding, and capability through knowledge and educational resources including a historical deal database and blended finance trainings;
3) The Investor Marketplace will enable public and private investors to find and connect with each other to complete deals in emerging markets.
The goal is for Convergence to be the global platform for public and private investors to connect, develop and support blended finance investments.
Partners
Bill & Melinda Gates Foundation, BlackRhino, the Government of Canada, the Government of Ethiopia, the Government of the Netherlands, the Government of Senegal, Mara Group, MasterCard, The Rockefeller Foundation, World Economic Forum
With design and launch support from Dalberg Global Development Advisors and the Global Development Incubator.
Targets
Convergence aims to create more blended finance deal flow, increased blended finance innovation, and greater blended finance understanding. Convergence will allow public and private funders to blend their capital and create higher quality, financially attractive, and risk mitigated deals.
In particular, Convergence will enable limited development capital funds to benefit from a multiplier effect of private capital flows to support investments in emerging markets. For example, a recent survey of blended finance funds and facilities suggests that over 177 million people have already benefited from this approach, with $1 of public capital being able to attract over $20 of private capital in specific cases.
Alongside increased deal flow and innovation in blended finance, Convergence will raise awareness and understanding of blended finance and development issues among a range of investors, laying the groundwork for a more vibrant and well-functioning blended finance ecosystem.
Indicators
The exact indicators for the intended targets are currently being developed and will be finalized before the January 2016 launch. Below are some initial indicators:
-Number of deals finding co-investment on the Investor Marketplace
-Number of applications for New Product Design Facility grants
-Number of new blended finance products launched
-Number of knowledge tools accessed
-Number of users registering interest for trainings/workshops
-Value of blended finance supported by Convergence
Resources
Initial financial commitment of $23.5M CAD provided by the Government of Canada. Other partners will bring a mix of financial and in-kind support to Convergence.
Timeframe
Convergence will be launched in January 2016.