Development Finance Institutions
We work with both community development finance institutions (CDFIs) and international development finance institutions (DFIs).
How Development Finance Institutions Approach Impact
DFIs can have varied mandates that span the risk-return spectrum and are increasingly seeking to enhance and align their investment process and track record to the impact investing market. Their focus on community development often means that DFI ‘measurement and evaluation’ (M&E) capacity or knowledge is high. They benefit however, from a broader investment market perspective on how to integrate aspects of that type of assessment approach throughout the investment process and how to balance the rigor of M&E reporting with the practical approach of more traditional commercial investors.
The Impact Challenges That Development Finance Institutions Face
DFIs working to align with the broader impact investing market often need support to translate their investment strategy, track record, and process from a community development perspective to an institutional investor perspective, helping them access new capital or compete for new deals. Their focus on community development often means that DFI ‘measurement and evaluation’ (M&E) capacity or knowledge is high, though they benefit from a broader investment market perspective on how to integrate aspects of that type of assessment approach throughout the investment process and how to balance the rigor of M&E reporting with the practical approach of more traditional commercial investors.
How Tideline Helps Development Finance Institutions Address These Challenges
Tideline works with DFIs to understand their organizational context, capabilities, and investment universe to help re-position DFI investment activity within the impact investing context, often increasing these organizations’ flexibility, absorptive capacity, and public perception. With a clear vision and positioning in place, Tideline then supports DFIs to right-size their impact management approach and translate it to practice, including playing a role in extending a DFI’s impact diligence capability.
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UNDP engaged Tideline to help identify catalytic ways to accelerate investment flows, recognizing the need to mobilize private capital for the achievement of the SDGs. Tideline led UNDP through a dynamic design process and helped translate our core strengths and capabilities into a functional, compelling business model for removing the barriers investors face when trying to allocate capital to the SDGs. The end result was SDG Impact, a global flagship UNDP initiative, that was launched in September 2018 by the UNDP Administrator at the General Assembly.
Elizabeth Boggs-Davidsen
Director, SDG Impact, United Nations Development Programme