UBS SDG fund reaches $100m, gaining commitment from EU
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Through the new anchor commitment from the European Union, the fund reached its subscription target of USD 100 million. This Luxembourg-based SFDR Article 9 fund is a pioneering blended finance initiative designed to accelerate progress towards the United Nations Sustainable Development Goals (SDGs) by supporting outcomes-focused programs in low- and middle-income countries, particularly in Africa and Asia.
European Union joins fund with new anchor commitment
The fund was created as a partnership between UBS Optimus Foundation, which provides first-loss capital, and Bridges Outcomes Partnerships (BOP), a not-for-profit impact specialist which acts as a portfolio and delivery manager. Mezzanine and senior capital have been committed by the US International Development Finance Corporation (DFC) and British International Investment (BII), alongside private investors including Legatum, family offices such as the Tsao Family Office, Ferd, and high net worth individuals. The European Investment Bank recently completed a USD 18 million commitment to the fund through funding from the European Commission via the ACP Trust Fund, enabling it to reach its USD 100 million target. This investment will contribute to the Africa-EU Global Gateway Investment Package objectives. This operation is fully in line with the European Commission's priority to promote impact investments and find innovative ways to finance programs in low- and middle-income countries, including in fragile countries.
A transformational way of achieving better outcomes for underserved people
SDG Outcomes is the first fund specifically designed to support outcomes-based programs in low- and middle-income countries, with a focus on health, education, women's economic empowerment, and the environment. For each program, BOP brings together like-minded partners to find innovative solutions that can achieve measurable impact. Expert local partners are identified to deliver the program, with the SDG Outcomes Fund covering the up-front costs. Funders – typically local or national governments, donors, foundations, corporates, NGOs, or even individuals themselves – only pay if successful, verifiable outcomes are achieved. The focus on outcomes, instead of on the traditional approach of paying for activities or inputs, allows delivery consortia to adjust and tailor their programs as they go along, learning from real-time impact data about how to achieve the best possible results in each context. As a result, nearly USD 13.5 million of outcome payments have already been achieved.
Proven track record of impact
The SDG Outcomes Fund aims to have a broader systemic impact by developing completely new delivery models, building the capacity of high-impact local organizations, and transforming the way local governments and donors fund services for underserved populations. This collaborative and flexible approach to delivering critical programs is already helping hundreds of thousands of people to improve their lives, including:
Supporting 50,000+ schools in India and 100,000+ children in Sierra Leone and Ghana.
Delivering 1.5+ million sexual and reproductive health services to 700,000+ girls aged 15-19 in Kenya.
Collecting 3,000 tons of plastic waste for recycling in Nigeria.
Providing IT upskilling and employment opportunities for 800+ long term unemployed young adults in Türkiye.
Tom Hall, Global Head of Social Impact and Philanthropy and CEO, UBS Optimus Foundation Network, says: 'The SDG Outcomes Fund is a ground-breaking initiative that shows how different forms of capital can come together to deliver outcomes for people who need it most. Reaching the USD 100 million milestone demonstrates the powerful potential of outcomes-based funding programs and their role in shaping future impact investment models.'
Mila Lukic OBE, CEO of Bridges Outcomes Partnerships, says: 'The results achieved by the SDG Outcomes Fund already show that by bringing together a range of partners, and critically, by learning from the data about what works best and adjusting our programs accordingly, we can achieve better outcomes for individuals and better value for our funders. This more flexible, more collaborative approach has already helped to improve the lives of hundreds of thousands of people, and we are hugely grateful to all our investors for supporting this fund, which will ensure impact-seeking capital catalyzes high-impact programs in some of the areas of greatest need.'
Ambroise Fayolle, Vice-President of the European Investment Bank, says: 'Our commitment is more than just financing – it's investing in a future where every investment delivers tangible, measured impact. This fund is already bringing advancements in health, education, and climate action to vulnerable communities around the world, with a strong focus on Africa and emerging markets.'
European Commissioner for International Partnerships Jozef Síkela says: 'New opportunities — better education, impactful training, quality jobs. That is one of the core goals of the Global Gateway. That's why I appreciate the ACP Trust Fund, which enables us to invest in high-impact programs across Africa. It will help us deliver on our goals. Improve education, create jobs, or build stronger health systems.'
Leslie Maasdorp, CEO, British International Investment, says: 'BII is proud to support the SDG Outcomes Fund which is dedicated to achieving better outcomes for underserved communities. This initiative exemplifies the power of mobilizing like-minded partners to unlock innovative solutions that deliver significant and tangible results, and we are grateful for EIB's support to get this impactful fund to the target size. We look forward to the fund's continued success in improving livelihoods and supporting high-impact projects.'
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