Convergence has launched the world’s first deal sourcing platform that helps public and private investors find and connect with each other for blended finance investments in emerging and frontier markets.

David Creighton, Vice Chairman of Cordiant and a Convergence board member, said: “Convergence has the potential to be transformative for asset managers and private investors alike by introducing an innovative new platform to facilitate access to high-quality opportunities and catalyze significant–and sustainable–developmental change in emerging and frontier markets.”

Blended finance is the strategic use of public and philanthropic funds to attract private capital towards investments that can deliver development impact in emerging and frontier markets.

Headquartered in Toronto, Convergence will enable more investment in these markets by leveraging public and philanthropic funding to unlock billions of private sector dollars for global development– which can lead to a 10x increase in overall investment.

By allowing investors to quickly search databases for credible deals or co-investors that match their investment needs, Convergence will broaden investors’ networks and simplify their screening process.

“Convergence will introduce a new, collaborative approach to emerging market investing. It will become much easier for investors to find high-quality transactions in emerging markets that will allow them to leverage their dollars towards greater economic, social, or environmental impact,” said Joan M. Larrea, who will become Convergence’s CEO, effective February 15.

Larrea joins Convergence from Overseas Private Investment Corporation (OPIC), the US Government’s development finance agency, where she led efforts to partner with private sector investors.

Prior to OPIC, she served as managing director at Global Environment Fund, a global alternative asset manager dedicated to the energy, environmental, and natural resources sectors.

To identify, encourage, and support blended finance investments, Convergence will connect credible private, public, and philanthropic investors with one another, to co-invest in deals posted on the platform.

Registered institutions can post blended finance investment opportunities on the deal database that are located in an emerging or frontier markets, have an overall deal size of at least $5m, and can demonstrate a commitment from at least one anchor investor.

Convergence will provide over $7m in grant funding to practitioners to design innovative finance products that would otherwise be too risky or complex to pursue.

In addition, the platform will ease the investment process for both new and experienced investors through a range of practical tools and resources on how to structure blended finance transactions and streamline the investment process.

Convergence has wide-ranging cross-sectoral support, including funding from the Government of Canada and Citi Foundation, a Board and Advisory Committee whose members hail from organizations ranging from MasterCard Worldwide to the Government of Ethiopia, and pioneer users across all sectors and geographies – such as the Bill & Melinda Gates Foundation, Black Rhino, CDC Group, Citi, the Korea International Cooperation Agency, the Dutch Development Bank FMO, and Root Capital.

Peter Sullivan, Head of Citigroup’s Africa Public Sector Group, said: “Citi is proud to support this exciting and innovative access and content channel for the global investment community. From the onset of the project, Citi and the Citi Foundation strongly supported the development of Convergence, which we believe will help the blended finance market grow and increase capital flows for global development, particularly in emerging markets.”