Stage 3: Scale-up/Expansion Grant

About this grant

The Blended Finance Accelerator for Fund Managers (A4FM) supports fund and asset managers to develop and scale blended finance vehicles and mobilize institutional capital into emerging and developing markets (EMDEs). The program addresses the challenge that despite institutional investors managing over $120 trillion globally, only a small fraction flows into emerging and developing economies, particularly least developed countries (LDCs) and lower middle-income countries (LMICs). A4FM provides skill building through virtual and in-person training sessions, catalytic grants to support vehicle development from scoping through proof-of-concept to scale-up and expansion, and acceleration support including access to Convergence's network and technical expertise. The program equips managers with tools, expertise, and partnerships to create scalable, bankable investment vehicles that can diversify institutional portfolios, enable entry into high-growth markets, and mobilize significant volumes of commercial capital while building lasting capacity for blended finance.

Eligibility

Eligible applicants include fund managers, asset managers, or investment management/advisory firms working in partnership with a fund or asset manager. Applicants must intend to scope, design, launch, and/or scale a blended finance vehicle in emerging and developing markets as defined by the OECD-DAC List of ODA Recipients, with vehicles strongly encouraged to target least developed countries (LDCs) and lower middle-income countries (LMICs). Solutions must deliver clear development impact by addressing sustainability-aligned sectors (including climate, healthcare, education, gender equality, and financial inclusion) and demonstrate a strong link to advancing gender equality. Solutions must show potential to mobilize private capital at scale and demonstrate that the financial structure can be replicated in other markets. The program welcomes both emerging adopters of blended finance and experienced practitioners. For Stage 3 (Scale-up/Expansion), applicants must have either developed initial design and structure of the blended finance vehicle with impact and investment thesis and early stakeholder engagement (Scale-up track), or for Expansion track, must have a launched vehicle with initiated capital deployment and first close in process with compelling case and concrete investor interest for expansion. Cost-sharing requirement: grantees must contribute a minimum of 10% of total cost in cash or in-kind.

How it's scored

Applications are evaluated based on six criteria: (1) Track Record and Capabilities, assessing the organization's relevant experience in designing and managing investment vehicles, commitment of the core team, and local presence or partnerships in target markets; (2) Market Opportunity and Additionality, evaluating clear market gap rationale for blended structuring, potential to drive capital into EMDEs, strategic use of A4FM support and applicant's contribution; (3) Target Size and Potential to Scale, examining clear capital structure and fundraising strategy, level of institutional/private capital participation, and pathway to scale-up and replication; (4) Development Impact, assessing clear development impact thesis, targeting of underserved communities with gender lens, and clear KPIs using global standards; (5) Commercial Viability and Path to Financial Close, evaluating bankability of structure, progress toward close, and robust risk management and governance; and (6) Strategic Partnership and Stakeholder Support, assessing support from key partners and well-defined roles and engagement strategy. Detailed evaluation criteria and scoring available in downloadable document.

Key requirements

• ✓Applicant must be operationalizing or expanding a blended finance vehicle or financial instrument
• ✓Activities must support investment process improvement, deal due diligence, or geographic/financial close expansion
• ✓Grant is conditionally repayable, implying revenue-generating or return-generating financial model
• ✓Alignment with one or more of: climate, healthcare, education, gender equality, financial inclusion

Frequently asked questions

How much funding does Blended Finance Accelerator (A4FM) offer?

Stage 3: Scale-up/Expansion Grant offers $365K.

Who can apply for Stage 3: Scale-up/Expansion Grant?

Eligibility covers organisations in GLOBAL; startup, sme, nonprofit, social-enterprise, consortium. See the eligibility criteria above for the full conditions.