The OECD, World Bank, GEF, Rockefeller Foundation and others, whose reports all use the same language about blended finance[1].
A way to structure investment using two layers: a senior tranche and a junior tranche. Public money sits in the junior, first-loss slot.
The model is the same one used in earlier structured finance. Public money takes the first loss, which lowers the risk for private investors in the senior tranche. Reports from the OECD, World Bank, GEF, Rockefeller Foundation and others present blended finance as a success story in the making. The term was coined at a Rockefeller Foundation retreat at the Bellagio Centre. The Green Climate Fund was set up using blended finance. The Rockefeller Foundation also produced a report on blended finance leverage claims. A UK government document lists blended finance among mechanisms to improve outcomes in communities. A Rockefeller Philanthropy Advisors guide introduces impact investing.
It shows how public money can be used to absorb risk for private investors, while the public story is that everyone wins.