Mobilisation ratio

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 press release 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)

Other resources

• UK National Wealth Fund: Mobilising Private Investment - HM Treasury policy paper - October 2024
• National Wealth Fund Taskforce advice - July 2024