UBS has announced that the SDG Outcomes Fund, developed by its philanthropy-focused platform UBS Optimus Foundation and impact specialist Bridges Outcomes Partnerships (BOP), has successfully raised $100 million in commitments at its final close, reaching the initial fundraising target for this blended finance fund. The fund’s final close featured an $18 million anchor commitment from the European Investment Bank (EIB), supported by funding from the European Commission through the ACP Trust Fund.
Ambroise Fayolle, Vice-President of the EIB, noted that the commitment represents more than mere financing, but an investment in a future where every investment delivers tangible, measurable impact. The fund is already facilitating advancements in health, education, and climate action for vulnerable communities globally, with a significant focus on Africa and emerging markets.
Classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the SDG Outcomes Fund aims to expedite progress towards the UN Sustainable Development Goals (SDGs) by investing in outcomes-based financing programmes in low- and middle-income countries. It primarily focuses on health, education, women’s economic empowerment, and the environment. Blended finance combines public or philanthropic capital with private funding in a unified investment structure, allowing investors to target investments perceived as high-risk, such as innovative climate mitigation technologies.
Within the partnership between UBS Optimus Foundation and Bridges, UBS provides first-loss capital, while BOP serves as the portfolio and delivery manager, assembling partners to develop innovative solutions for measurable project impacts. The fund covers upfront programme costs, with other funders, including local or national governments, donors, foundations, corporates, NGOs, or individuals, contributing only if successful, verifiable outcomes are achieved.
Tom Hall, Global Head of Social Impact and Philanthropy and CEO of UBS Optimus Foundation Network, described the SDG Outcomes Fund as a pioneering initiative showcasing how various capital forms can converge to deliver critical outcomes. Achieving the $100 million milestone underscores the powerful potential of outcomes-based funding programmes and their influence on future impact investment models.
UBS highlighted that the fund is the first specifically designed to support outcomes-based programmes in low- and middle-income countries, having already facilitated $13.5 million in payments for social and environmental outcomes. Mila Lukic OBE, CEO of Bridges Outcomes Partnerships, emphasised that the results demonstrate the potential of collaborative approaches that adapt based on data insights to achieve better outcomes for individuals and value for funders. This flexible, cooperative strategy has already improved the lives of hundreds of thousands, and the support of investors ensures that impact-seeking capital will continue to drive high-impact programmes in areas of greatest need.
