Innovation in Financing Structures for Impact Enterprises: Spotlight on Latin America

From Transform Finance, this report, commissioned by the Multilateral Investment Fund of the Inter-American Development Bank with the support of the Rockefeller Foundation, highlights how traditional debt and equity financing structures often fail to adequately meet the needs of early-stage impact enterprises. The report examines the pain points for both investors and entrepreneurs around traditional structures and the need for innovative instruments, provides examples of emerging and proven models, from revenue-based mezzanine debt to self-liquidating equity, and offers suggestions for concrete steps to advance the adoption of alternative structures to foster impact enterprises.