The SDG Outcomes Fund is the first international fund explicitly designed to support outcomes-based programming in low- and middle-income countries. Photo European Investment Bank
The SDG Outcomes Fund has reached its $100 million fundraising target, following a new anchor investment from the European Union.
The announcement was made at the 4th UN International Conference on Financing for Development (FFD4) in Sevilla.
Launched in 2022, the fund uses a results-based financing model to support health, education, climate, and gender equality programs in low- and middle-income countries, especially in Africa and Asia.
Operated by UBS Optimus Foundation and Bridges Outcomes Partnerships, it channels blended capital toward interventions that only receive payment if pre-agreed outcomes are achieved.
The milestone positions the fund as a pioneering force in outcomes-based financing: a model that pays only for independently verified results rather than traditional program inputs.
The fund aims to accelerate progress toward the United Nations Sustainable Development Goals (SDGs).
“This is a ground-breaking initiative that shows how different forms of capital can come together to deliver outcomes for people who need it most,” said Tom Hall, Global Head of Social Impact and Philanthropy and CEO of UBS Optimus Foundation Network.
“Reaching the USD 100 million milestone demonstrates the powerful potential of outcomes-based funding programs and their role in shaping future impact investment models.”
From Funding Activities to Funding Results
The SDG Outcomes Fund reflects a growing transition in global development thinking: away from paying for inputs and toward paying for proven measurable success.
In this model, governments, philanthropic donors, and development finance institutions commit resources that are only disbursed when verified outcomes—such as improved access to education or measurable health improvements—are achieved.
This innovative approach contrasts with traditional aid models that often fund predefined activities, regardless of their effectiveness.
Instead, the SDG Outcomes Fund enables implementing partners to respond to real-time data, tailor their strategies, and innovate continuously.
Since its launch, the fund has already triggered nearly $13.5 million in outcome payments across multiple countries. Programs supported include:
- Delivery of over 1.5 million sexual and reproductive health services to 700,000+ girls aged 15–19 in Kenya
- Support for 50,000+ schools in India and 100,000+ children in Sierra Leone and Ghana
- Recycling of 3,000 tons of plastic waste in Nigeria
- IT upskilling and job placement for more than 800 long-term unemployed young adults in Türkiye
“The results achieved by the SDG Outcomes Fund already show that by bringing together a range of partners, and critically, by learning from the data about what works best and adjusting our programs accordingly, we can achieve better outcomes for individuals and better value for our funders,” said Mila Lukic OBE, CEO of Bridges Outcomes Partnerships, the organization that designs and manages the fund’s delivery model.
Blended Capital, Shared Risk
The fund is structured as a blended finance vehicle, combining different types of capital with varied risk appetites.
This includes first-loss catalytic capital from UBS Optimus Foundation, senior and mezzanine funding from development finance institutions, and investments from private sector philanthropists.
Key partners include the US International Development Finance Corporation (DFC) and British International Investment (BII).
Additional capital has been provided by high-net-worth individuals and family offices, including Legatum, Ferd, and the Tsao Family Office.
The final $18 million that brought the fund to its $100 million target came from the European Investment Bank (EIB) through the ACP Trust Fund, which is financed by the European Commission and targets investment in Africa, the Caribbean, and the Pacific.
“Our commitment is more than just financing – it’s investing in a future where every investment delivers tangible, measured impact,” said Ambroise Fayolle, Vice-President of the European Investment Bank.
“This fund is already bringing advancements in health, education, and climate action to vulnerable communities around the world, with a strong focus on Africa and emerging markets.”
The ability to mix philanthropic and commercial capital is key to the fund’s success.
It enables higher-risk, early-stage investments in social outcomes to be de-risked for commercial investors while still ensuring accountability and financial discipline.
Investing in the Global Gateway
The EIB’s investment in the SDG Outcomes Fund supports broader EU goals under the Africa-EU Global Gateway Investment Package, which seeks to mobilize up to €150 billion in sustainable investments across Africa by 2027.
The ACP Trust Fund, launched in 2023, focuses specifically on high-impact development efforts in fragile and low-income countries.
“New opportunities — better education, impactful training, quality jobs. That is one of the core goals of the Global Gateway,” said Jozef Síkela, European Commissioner for International Partnerships.
“That’s why I appreciate the ACP Trust Fund, which enables us to invest in high-impact programs across Africa. It will help us deliver on our goals. Improve education, create jobs, or build stronger health systems.”
The ACP Trust Fund offers tools such as equity, subordinated debt, risk-sharing instruments, and local currency lending—all essential for unlocking financing in countries with weak capital markets.
Systemic Impact Through Outcomes
Unlike one-off development projects, outcomes-based financing creates the conditions for long-term change.
Delivery consortia, often led by community-based organizations or mission-driven enterprises, are empowered to design and test solutions that can scale.
As outcomes are verified, payments are released, allowing capital to revolve into new projects.
“This more flexible, more collaborative approach has already helped to improve the lives of hundreds of thousands of people,” said Lukic.
“We are hugely grateful to all our investors for supporting this fund, which will ensure impact-seeking capital catalyzes high-impact programs in some of the areas of greatest need.”
The fund also serves as a learning platform, generating data on what works, building local institutional capacity, and setting new norms in how funders and governments design contracts and measure success.
Governments as Co-Funders
The outcomes-based model could have far-reaching implications for how national and subnational governments approach service delivery.
By sharing financial risk with private capital and using public funds to pay only for verified results, governments can stretch limited budgets further and improve accountability.
This is especially relevant in African and Asian contexts, where service delivery is often fragmented, underfunded, or constrained by capacity.
Outcome contracts can be used in health, education, climate action, and economic inclusion sectors where traditional spending has sometimes failed to deliver results.
Replication and Global Influence
The SDG Outcomes Fund is the first international fund explicitly designed to support outcomes-based programming in low- and middle-income countries.
But it is already influencing conversations across the aid and development landscape.
“BII is proud to support the SDG Outcomes Fund, which is dedicated to achieving better outcomes for underserved communities,” said Leslie Maasdorp, CEO of British International Investment.
“This initiative exemplifies the power of mobilizing like-minded partners to unlock innovative solutions that deliver significant and tangible results, and we are grateful for EIB’s support to get this impactful fund to the target size. We look forward to the fund’s continued success in improving livelihoods and supporting high-impact projects.”
As global demand for smarter, more scalable funding grows—especially with the 2030 SDG deadline approaching—this fund offers a blueprint for aligning incentives and centering the needs of underserved populations.
About the Partners
UBS Optimus Foundation is a global philanthropic platform established 25 years ago by UBS.
It enables clients to co-fund transformative, evidence-based programs with a focus on children’s health, education, and climate resilience.
Bridges Outcomes Partnerships is a not-for-profit social enterprise and one of the world’s leading innovators in outcomes-based financing.
Since 2012, it has worked with governments, donors, and social investors to deliver over 80 programs in multiple countries, benefiting nearly a million people.
European Investment Bank (EIB) is the EU’s public development bank.
Its EIB Global arm and ACP Trust Fund support inclusive and sustainable development worldwide, especially in low-income countries across Africa, the Caribbean, and the Pacific.
British International Investment (BII) is the UK’s development finance institution and impact investor.
With total assets of £8.5 billion, BII focuses on private-sector growth, climate finance, and women’s economic empowerment through initiatives like the 2X Challenge.
