This guidebook introduces blended finance — a way to combine philanthropic and concessional capital with commercial investment. By aligning different motivations, we can unlock more funding for high-impact solutions while still meeting market return expectations.

For too long, philanthropic capital has been split in two: the corpus quietly invested for financial return, and a small portion granted for impact. But with urgent social and environmental challenges mounting, this traditional model is no longer enough. This guidebook explores how PAFs and PuAFs can unlock their full potential by moving beyond capital preservation — using the corpus itself as a tool to accelerate change. By aligning investment strategies with mission, foundations can put more of their capital to work for the world they seek to shape.

Blended finance is the next evolution of impact investing — designed not just for innovation, but for scale. While traditional impact investment has shown what's possible, it remains a small slice of global capital flows. To tackle systemic challenges like climate change we need to unlock far greater volumes of funding. Blended finance does exactly that by structuring investments that meet the needs of both impact-driven and commercial investors, helping shift capital from the margins to the mainstream.