Infrastructure financing offers a range of investment opportunities, but risk constraints have traditionally kept investors anchored in developed markets. That boundary is now shifting as blended finance opens more accessible routes into emerging economies.

Exploring a new investment universe with blended finance

Achieving a well-diversified portfolio with an attractive risk-adjusted return and measurable impact can be challenging – particularly when many high-impact opportunities lie in emerging markets that investors may find unfamiliar or difficult to access. And while climate and sustainability have become controversial topics in some quarters, many investors still prioritise them as part of a sound long-term strategy. This is where blended finance becomes relevant: it can open up investable pathways into markets and projects that might otherwise be out of reach.

“Blended finance focuses on bringing together public and private sector capital in the form of risk-tiered funds that aim to mobilise scalable amounts of private capital into impactful projects in emerging markets.”

In essence, blended finance provides private sector investors with access to emerging markets in a significantly de-risked way while helping them meet their impact goals. A key principle of blended finance is that it “blends” the capital, expertise and track record of public and private sector partners. The result is a robust investment opportunity with real-world outcomes.

Read more: 2026: Blended Finance – where performance meets purpose

– Authors: Leticia Ferreras Astorqui, Head of Development Finance, and co-authors Teoman Kaplan, Actuary DAV and Head of Global Insurance Specialists and Financial Institutions Group, and Dr. Florian A. Ueltzhöfer, Actuary DAV/IVS and Senior Insurance Strategist, Allianz.

– This contribution is brought to you by Allianz, a valued Bronze sponsor of Building Bridges 2026.