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 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)
