Mobilisation ratio: Difference between revisions
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Crowding in is the theory - or expectation - that initial investment from a public sector agency will then attract additional private capital, usually to the particular deal. | Crowding in is the theory - or expectation - that initial investment from a public sector agency will then attract additional private capital, usually to the particular deal. | ||
The mobilisation ratio measures the effectiveness of crowding in as a proportion | |||
The mobilisation ratio measures the effectiveness of crowding in as a proportion. The UK government's policy paper on its National Wealth Fund calculates it as: | |||
Mobilisation ratio = Public sector investment / private sector capital crowded in (*) | Mobilisation ratio = Public sector investment / private sector capital crowded in (*) | ||
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*[https://www.gov.uk/government/publications/national-wealth-fund-mobilising-private-investment/national-wealth-fund-mobilising-private-investment-accessible#:~:text=With%20a%20target%20mobilisation%20ratio,undersupply%20in%20private%20finance%20exists UK National Wealth Fund: Mobilising Private Investment - HM Treasury policy paper - October 2024] | *[https://www.gov.uk/government/publications/national-wealth-fund-mobilising-private-investment/national-wealth-fund-mobilising-private-investment-accessible#:~:text=With%20a%20target%20mobilisation%20ratio,undersupply%20in%20private%20finance%20exists UK National Wealth Fund: Mobilising Private Investment - HM Treasury policy paper - October 2024] | ||
*[https://www.greenfinanceinstitute.com/wp-content/uploads/2024/07/20240709_1400_NWF-Taskforce-Report-v.FINAL_.pdf#:~:text=Executive%20Summary%20National%20Wealth%20Fund%20Taskforce%204%20 National Wealth Fund Taskforce advice - July 2024] | *[https://www.greenfinanceinstitute.com/wp-content/uploads/2024/07/20240709_1400_NWF-Taskforce-Report-v.FINAL_.pdf#:~:text=Executive%20Summary%20National%20Wealth%20Fund%20Taskforce%204%20 National Wealth Fund Taskforce advice - July 2024] | ||
*[https://www.bii.co.uk/en/news-insight/research/take-care-with-mobilisation-ratios-in-secondary-transactions/ Take care with mobilisation ratios in secondary transactions - Paddy Carter, Head of Development Economics, British International Investment] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 13:37, 28 December 2024
Sustainability - investment - capital markets - public sector - crowding in - UK - National Wealth Fund (NWF).
In the context of public sector investment, mobilisation ratio is closely related to crowding in.
Crowding in is the theory - or expectation - that initial investment from a public sector agency will then attract additional private capital, usually to the particular deal.
The mobilisation ratio measures the effectiveness of crowding in as a proportion. The UK government's policy paper on its National Wealth Fund calculates it as:
Mobilisation ratio = Public sector investment / private sector capital crowded in (*)
- NWF could mobilise £70bn of private investment
- "... the NWF will have a total capitalisation of £27.8 billion to catalyse investment that would not have otherwise taken place...
- With a target mobilisation ratio of 1:3, the NWF could mobilise at least £70bn of private investment..."
- UK National Wealth Fund: Mobilising Private Investment - HM Treasury policy paper - October 2024.
(*)
Some sources calculate and use the mobilisation ratio the other way around, as follows:
Mobilisation ratio = Private sector capital crowded in / public sector investment
Here as always, take great care with identifying definitions and using them consistently.
See also
- Additionality
- Blended finance
- Capital
- Capitalisation
- Catalytic capital
- Crowd in
- Investment
- Investor
- Multiplier effect
- Private sector
- Public sector
- Social investment
- Subsidy
- Sustainability
- UK National Wealth Fund (NWF)
