Mobilisation ratio: Difference between revisions
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:<span style="color:#4B0082">'''''NWF could mobilise £70bn of private investment'''''</span> | :<span style="color:#4B0082">'''''NWF could mobilise £70bn of private investment'''''</span> | ||
... the NWF will have a total capitalisation of £27.8 billion to catalyse investment that would not have otherwise taken place... | :"... 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..." | :With a target mobilisation ratio of 1:3, the NWF could mobilise at least £70bn of private investment..." | ||
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(*) | ''(*)'' | ||
Some sources calculate and use | ''Some sources calculate and use the mobilisation ratio the other way around, as follows:'' | ||
Mobilisation ratio = Private sector capital crowded in / public sector investment | ''Mobilisation ratio = Private sector capital crowded in / public sector investment '' | ||
Here as always, take great care with definitions. | ''Here as always, take great care with identifying definitions and using them consistently.'' | ||
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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] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] |
Revision as of 12:44, 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 calculated by the UK government 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)