Insights

Supporting New Blended Finance Offerings

Many high-potential investment products that aim to tackle complex issues fail to secure sufficient private capital due to novelty, uncertain returns or perceived risk. Existing financing solutions have not been able to address the capital gap and if it’s only the traditional, ‘easy to invest in’ products that find funding, we as a society will not solve the complicated systemic problems that need solving. This is where a blended finance solutions can help. By providing catalytic public or concessionary capital, blended finance structures can de-risk investment products and so attract private capital.

To support the development of blended finance in Canada, and following an open RFP process, we have granted funding to three organizations so they can refine and advance their blended finance project ideas over the next year and become more investment ready:

  • The Fireweed Institute
  • PaceZero Capital Partners
  • Wakopa Financial Workers’ Co-Operative

We believe the work of these organizations will support not just their investees and partners but will help to develop and strengthen blended finance within Canada’s social finance market, leading to a higher adoption by many.

The Fireweed Institute

The Fireweed Institute is an Indigenous-led organization supporting economic sovereignty through entrepreneurship, investment and community wealth-building. Our grant will fund legal and financial advisory services to support the design of the Community Wealth Fund, a trauma-informed and culturally grounded blended finance fund that will invest in Indigenous-led, impact-first businesses using non-extractive tools and shared-upside mechanisms to ensure prosperity flows back to Indigenous founders and their communities. As the first fund of its kind, it has the potential to create a replicable model for Indigenous peoples and communities across the globe to shape their own economic futures.

“Indigenous entrepreneurs are building the future of this country’s economy, and they deserve capital that meets them in relationship, not extraction. With Realize Capital’s support, we can finally begin to design a fund that reflects our values and is patient, relational and rooted in reciprocity to create the conditions for shared prosperity across our communities. This is the first step toward an investment model that honours who we are and who we’re becoming.”

– Jacqueline Jennings, The Fireweed Institute

 

PaceZero Capital Partners

PaceZero Capital Partners is a private credit firm that partners with high-growth companies that deliver measurable social and environmental impact. The firm is developing a blended finance credit enhancement model that expands access to credit for high-impact and underserved sectors of the Canadian economy. Our grant will help fund a case study and continue to advance blended finance specific legal and operational templates. Developing standardized structures and market-accepted documentation helps lower the barriers for institutional investors and catalyze wide private capital participation in the blended finance market.

“We are proud to be leading the progression of blended finance in Canada; developing innovative investment structures that accelerate capital deployment and deliver environmental and social impact at scale. Support from Realize Capital Partners through the Blended Finance initiative strengthens our efforts and contributes positively to the growth of the sector.”

– Jordan Peckham, PaceZero Capital Partners

 

Wakopa Financial Workers’ Co-operative

Wakopa Financial is Canada’s only Indigenous social financial services company that specializes in the investment-readiness of barrier-facing entrepreneurs and their startups or social enterprises. Our grant will cover early structuring and fundraising costs in launching its Indigenous Knowledge Center Blended Finance Fund. The fund aims to help address the funding gap in Indigenous infrastructure. Through its fund, Wakopa Financial will invest in Knowledge Centers, an Indigenous development model that supports workforce development, business creation and cultural programming.

“Being Canada’s only Indigenous social financial services company, Wakopa Financial is grateful to Realize Capital Partners for supporting the development of our Indigenous Knowledge Centres Blended Finance Fund. We’ve been working on this project in partnership for over two years, seeing Indigenous communities gain the spatial agency and skills necessary to develop their own infrastructure that makes sense for them on their unique lands; the investment fund necessary to catalyze this economy-building work has been the missing piece for communities – something that without the dedicated catalytic funds and support by Realize, we would be even further behind.”

– Richard Tuck, Wakopa Financial