Replicability

As the market matures, blended finance must evolve from one-off innovations to adaptable, replicable models supported by common standards and frameworks and shared terminology. Developing tools, templates and a common language will equip practitioners to deploy blended finance effectively in their context. Replicability should reduce transaction friction, enable adoption by new entrants and allow good ideas to scale without losing local relevance.

State of play

Replicability is essential for moving blended finance from niche innovation to mainstream deployment. To date, many models have remained bespoke, context-specific and resource-intensive, making them difficult for new entrants to adopt in their own settings. Increasingly codified typologies, scorecards and toolkits are beginning to emerge to help practitioners reuse proven models.

Core enablers of progress

Differentiate innovation from mobilisation: Develop distinct strategies for funds that aim to test new models and those that focus on scaling private investment (i.e. blended funds with the primary purpose of “Pioneering Impact” vs funds that aim at “Mobilization at scale”, see BII/BCG Report). Recognise that blended finance cannot always achieve both simultaneously and is not always the most appropriate solution to every challenge.

Clarify the role of each capital layer: Define the purpose and expectations of every tranche, including philanthropic, catalytic and commercial elements, and ensure transparency around aligned investor profiles. This clarity supports consistent application and stronger trust among participants.

Publish and leverage existing models: Share fund structures, financial models and reporting frameworks in plain language and accessible, user-friendly formats. Make it easier for new and existing practitioners to replicate proven approaches.

Balance standardisation with local adaptation: Design replication strategies using shared templates and core principles, while allowing flexibility to adapt to local legal, operational and cultural realities. Co-design structures with delivery partners to ensure relevance and effectiveness.

Codify emerging practice: Create a shared language for blended finance. Develop a shared taxonomy codifying standardised models and establish common terminology and improve readability for investors and support adoption by new entrants.

Build shared infrastructure: Develop frameworks, scorecards and rating tools to support confident, evidence-based decision-making. Create standard legal templates, reporting tools and fund structures to reduce set-up costs and time. Develop practical playbooks to support execution, and prioritise solutions that help early-stage and resource-constrained teams.

Momentum in the market

IFC–Sida Managed Co-Lending Portfolio Programme (MCPP) Infrastructure, a co-lending platform that channels institutional capital alongside DFI balance sheets, demonstrating how a repeatable structure can mobilise investment at scale.

BlueOrchard blended funds debt vehicles that use layered capital to reach underserved borrowers, providing adaptable approaches that can be replicated across markets.

Finance in Motion blended funds regional and thematic funds that combine public and private capital, offering a consistent and proven model for replication.

International Finance Corporation (IFC): How blended finance works explains key structures, roles and safeguards that support consistent design and application across markets. 

DFI Working Group on Blended Concessional Finance for Private Sector Projects chaired by IFC, this group of more than 20 development finance institutions promotes the adoption of blended finance principles to ensure a disciplined approach and avoid market distortions.

BII and BCG: Practical guidance to scale blended finance sets out practical steps to make blended finance more effective and scalable, including when and how to use concessional capital, how to structure risk, and how to promote standardisation in fund design, governance and reporting.

Convergence: Standardisation resources provides taxonomies, term sheet examples and market notes that encourage a shared language and reusable building blocks for blended finance.

Global Alliance of Impact Lawyers: Unlocking Legal Pathways for Blended Finance shares insights from legal practitioners on templates, documentation and processes that help shorten time to market and improve replication.