1.4 THREE FAMILIES
Innovative finance mechanisms fall into three families
5 min
Results-based finance
Payments tied, partly or wholly, to pre-defined outcomes.
- Qualities
- Accountable, transparent, cost-effective.
- Structures
- Performance-based contracts, impact bonds, outcome funds, impact-linked finance, outcomes marketplace.
Impact funds
Investment vehicles seeking measurable impact alongside a return.
- Qualities
- Intentional, measurable, aligned.
- Structures
- Equity investments, debt investments, technical assistance, results-based features.
Blended finance
Public and philanthropic money de-risks private investment.
- Qualities
- Additional, catalytic, high-risk tolerant.
- Structures
- Multi-tranche debt and equity funds, guarantees, results-based features.