1.7 THE CAPITAL STACK
A blended structure layers capital by appetite for risk
7 min
Senior commercialUSD 5.0m · 50%
Repaid first, lowest return. Banks and impact lenders.
Subordinated and patientUSD 2.0m · 20%
Repaid after senior. Foundations and development finance institutions.
ConcessionalUSD 2.0m · 20%
Below-market return. Donors and family foundations.
First loss and grantUSD 1.0m · 10%
Absorbs the first losses. Aid agencies and guarantors.
Principle
Additionality
Use concessional money only where commercial money would not go on its own.
Principle
Minimum concessionality
Use the smallest subsidy that makes the deal work.
Principle
Maximised leverage
Structure each deal to bring the most private money per unit of public money.
USD 18.3bn
Blended finance mobilised in 2024
123
Deals closed in 2024
1 : 3.76
Private capital per unit of concessional capital
49%
Of deals address climate
Source: Convergence, State of Blended Finance 2025.