Examples of Blended Finance Structures
Blending of grant and investment
The most typical example is where grant and repayable capital is combined at a fund level and the grant provides cover for capital lost due to defaults (also known as ‘first loss’). This allows for loans reaching enterprises that are deemed to be higher risk.
Nesta Arts and Culture Impact Fund, a £23m fund with £5 million of grant funding from the Arts Council England and the National Lottery Heritage Fund which attracted a further investment of £18 million from several investors including Big Society Capital. It provides affordable, flexible loans to arts, culture and heritage organisations that have a positive social impact on the communities they live in.
To find out more about the Nesta Arts and Culture Impact Fund click below.
Read fund page