Finance in Motion, in cooperation with L&G and Texel, has established an issuance platform that enables the mobilisation of private capital for impact investments. This platform allows assets from impact investment activities to be placed with private institutional investors, thereby freeing up capital for new, high-impact investments. The initiative underscores the potential of innovative structuring to scale blended finance and strengthen the role of private capital in sustainable investment strategies.
The platform, developed based on Finance in Motion's expertise in structuring and asset management, transforms selected assets into a format specifically tailored for private institutional investors. The first transaction via this platform involved the acquisition of an existing asset by L&G, secured by credit insurance arranged by Texel.
Significance for Blended Finance
Melanie Aimer, Chief Commercial Officer at Finance in Motion, noted that this is not merely a single transaction but rather evidence of the evolution of blended finance. She emphasised how private capital can be integrated more systematically and how innovative platforms contribute to scaling impact by repeatedly deploying capital. This method connects the demand of institutional investors with impact assets through an insurance structure. This channels private capital into existing and successful impact investments, making funds available for new investments.
This development increases the scalability of blended finance: public and catalytic capital can be deployed where it is most urgently needed, while private investors gain access to established impact investment opportunities. It is noteworthy that this solution does not originate from a traditional bank-led capital market platform but from a specialised private debt house. Furthermore, it represents a significant milestone for the market, as Finance in Motion believes such a structure has been implemented for the first time within the framework of an Article 9 blended finance strategy. This illustrates the further development of impact-first investment approaches to attract additional institutional capital without abandoning the original objective.
Jake Harper, Head of EM Private Debt, Asset Management at L&G, expressed his delight about the collaboration, highlighting how innovative structures can mobilise private capital for emerging markets. He stressed that this transaction deepens L&G's commitment to B-loan-related investments and provides access to established impact assets, as well as freeing up capital for new opportunities. Harper is convinced that such approaches will play a decisive role in scaling sustainable finance.
A Precedent for the Industry
Alan Ball, Head of Structured and Bespoke Solutions at Texel, highlighted the productive collaboration with the experienced teams at Finance in Motion and L&G. He explained that the transaction combined his team's in-house structuring expertise with Texel's market experience in supporting development finance projects. The creative and cooperative approach of all parties involved significantly contributed to establishing this important precedent. For institutional investors, particularly insurers and other private capital providers, the platform opens access to risk-reduced, impact-oriented investment opportunities in growth markets.
- —Platform enables the placement of impact investment assets with private institutional investors.
- —First transaction involved the acquisition of an asset by L&G, secured by Texel.
- —Strengthens the scalability of blended finance and the integration of private capital.
- —Marks a precedent for Article 9 blended finance strategies.
For Finance in Motion, L&G and Texel, the transaction demonstrates a viable method for expanding the reach of blended finance. This promotes a more dynamic connection between catalytic capital, private investments, and measurable impact, leading to a multiplier effect. The existing impact is maintained, while the returned capital is reinvested into further projects that contribute to long-term sustainable development outcomes.
