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Study on Innovative Financing Vehicles and Impact Investing

Deadline for applications: April 24 2015 at 14:00, Danish time

Description: In recent years, a range of innovative financing models for development have emerged. By involving new private sector partners in development finance and by offering alternatives to grant funding, these financing models represent new tools in the development toolkit and propose new roles for bilateral donors. These new instruments may involve developing new products of relevance to developing and emerging economies and often aim to increase collaboration between private and public financiers, whereby public spending is allocated ‘smarter’. Despite an increasing interest from traditional donors in innovative financing models, they still only represent a small fraction of total ODA and little documentation exists on the experience.

Social impact investing, or just impact investing, is one instrument often referred to as an innovative financing model. From its origins in socially responsible investing, community finance, microfinance, and international development, impact investing has emerged as a distinct practice. Impact investment is defined as: Investments that intentionally target specific social or environmental objectives along with a financial return, and measure the achievement of both.

The overall purpose of this study is to document the international experience in relation to investment funds for development and innovative financing vehicles. It will involve inter alia a description of the roles of different types of actors (donors. DFIs, private investors) and experiences in relation to results measurement. The lessons learned will provide a better basis for designing, monitoring and managing investment funds for development.

The outputs of the consultancy are: (1) An inception report providing an overview of the field and a methodology for analysing the research questions, (2) A study report of maximum 40 pages, (3) A presentation at a public meeting (not yet scheduled).

A further delimitation of investment funds and innovative financing vehicles to be included in the study under the broad definition is expected during the inception phase. Based on a typology of the investment funds, a sampling of funds to include in the study will be undertaken. This may involve a sample of innovate financing vehicles from two groups of impact investment funds: One larger group of funds which will be studied on the basis of available documents only, and a more focused group of 8-10 funds, which will be studied in depth. For this latter group, the study will seek information from fund managers, financers and relevant stakeholders, primarily through interviews. Preference should be given to funds that include private investors.

The study is planned to be completed in September 2015.

Deadline for applications: 24th April 2015 at 14:00, Danish time


The standard application form should be used. Applications not using the standard form may be rejected. Applications received after the time limit shall be rejected.

The application form can be downloaded here.

Contact point: Danida Evaluation Department

Name of Programme Officer: Lars Christian Oxe
E-mail address Programme Officer: laroxe@um.dk

Criteria for selection:
A minimum of three and a maximum of five applicants with references best suited for this assignment will be invited to submit a tender.