The Challenge
Education systems face a persistent financing gap that public budgets and traditional aid cannot close alone. The annual education finance gap in low- and lower-middle-income countries is estimated at US$97 billion, with schools, training providers, and education enterprises struggling to access the capital they need to expand and improve, while investors lack the instruments and evidence necessary to deploy funds with confidence.
We help bridge this gap by connecting education providers to appropriate capital, structuring finance around learning outcomes, and building the markets through which sustained investment can flow. This includes using innovative mechanisms such as development impact bonds, results-based financing, and blended structures that help direct private and institutional capital toward measurable learning outcomes.
Developing financing mechanisms that connect capital to schools, training institutions, and education enterprises – from blended facilities and impact bonds to results-based approaches that tie funding to measurable learner and educational institution outcomes.
Helping education providers build the structural and financial foundations needed to engage investors and funders, spanning business model development, revenue structuring, and financial framework preparation.
Working with governments and funders to assess the enabling conditions for education investment, identify financing gaps, and strengthen the institutional and market conditions under which education finance can scale – addressing both capital supply and absorptive capacity, with a focus on reaching underserved learners.
Financing structures that tie capital flows to verified learning outcomes, shifting risk away from providers and toward funders – and creating performance incentives that link financial returns to measurable educational results.
Facilities that combine concessional and commercial capital to improve the risk-return profile of investments in education providers and EdTech enterprises, enabling private capital to engage in markets it would not otherwise enter.
Lending structures designed to meet the specific financing needs of learners and educational institutions, including facilities structured around income-contingent or outcome-linked repayment terms.
Grant and concessional funding instruments structured around defined performance milestones, directing capital to where impact can be demonstrated and helping providers transition toward more sustainable financing over time.
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