UBS, EU & Partners Reach $100M Milestone for SDG Outcomes Fund at FFD4

At the 4th United Nations International Conference on Financing for Development (FFD4) in Sevilla, UBS Optimus Foundation and Bridges Outcomes Partnerships (BOP) announced the successful final closing of the SDG Outcomes Fund, a landmark $100 million blended finance initiative aimed at advancing the United Nations Sustainable Development Goals (SDGs). This milestone was achieved with a new anchor commitment from the European Union, reinforcing the fund’s ambition to deliver measurable, outcomes-based impact across low- and middle-income countries (LMICs) in Africa and Asia.

A First-of-Its-Kind Outcomes-Based Investment Platform

The SDG Outcomes Fund, a Luxembourg-based SFDR Article 9 fund, is the first fund globally dedicated specifically to outcomes-focused programs in LMICs. Unlike traditional aid models that pay for inputs or services, the fund only disburses capital when verifiable outcomes—such as improved health, education, or environmental conditions—are achieved.

Through this outcomes-based financing model, local implementing partners are empowered with upfront capital and the flexibility to innovate and adapt in real time, based on impact data. This allows them to deliver superior results tailored to community needs, while ensuring funders only pay for success.

To date, the fund has already generated over $13.5 million in outcome payments—an early signal of both effectiveness and accountability.

A Global Collaboration of Public and Private Backers

The fund is the result of a strategic partnership between:

• UBS Optimus Foundation, which provides first-loss capital and long-term impact expertise.

• Bridges Outcomes Partnerships, which serves as the portfolio and delivery manager, guiding program design, evaluation, and implementation.

It is backed by a diverse group of investors and donors from across the public and private sectors, including:

• European Union, with its new anchor commitment that helped the fund reach $100M.

• European Investment Bank (EIB), through an $18 million investment via the ACP Trust Fund.

• US International Development Finance Corporation (DFC) and British International Investment (BII) with mezzanine and senior capital.

• Private investors such as Legatum, Ferd, Tsao Family Office, and high-net-worth individuals.

These contributions reflect a growing appetite among governments, DFIs, and private funders to adopt innovative financing mechanisms for systemic development challenges.

What the Fund Supports: From Education to Climate

The SDG Outcomes Fund targets four critical sectors:

1. Health – Including sexual and reproductive services for adolescent girls.

2. Education – Supporting schools, learning outcomes, and vocational training.

3. Women’s Economic Empowerment – Funding inclusive programs that support gender equality.

4. Environment and Climate – Including waste collection and recycling initiatives.

The programs already underway highlight the transformative scope of this model:

• 50,000+ schools supported in India.

• 100,000+ children assisted in Sierra Leone and Ghana.

• 1.5+ million health services delivered to 700,000+ teenage girls in Kenya.

• 3,000 tons of plastic waste collected in Nigeria.

• 800+ long-term unemployed youth upskilled in Türkiye.

Each intervention is delivered by local partners, monitored in real-time, and adjusted for maximum impact.

Strategic Global Alignment with EU’s Global Gateway

The fund is fully aligned with the European Commission’s Global Gateway strategy, which seeks to promote inclusive growth, sustainable infrastructure, and equitable job creation across Africa and beyond.

Jozef Síkela, European Commissioner for International Partnerships, emphasized the fund’s role in delivering “new opportunities—better education, impactful training, quality jobs,” especially in fragile contexts where traditional finance mechanisms often fail.

Ambroise Fayolle, EIB Vice-President, added: “This fund is already bringing advancements in health, education, and climate action to vulnerable communities, with a strong focus on Africa and emerging markets.”

A Transformative Model for Future Finance

According to Tom Hall, Global Head of Social Impact at UBS and CEO of UBS Optimus Foundation Network, “The SDG Outcomes Fund is a ground-breaking initiative that shows how different forms of capital can come together to deliver outcomes for people who need it most. Reaching the USD 100 million milestone demonstrates the powerful potential of outcomes-based funding programs and their role in shaping future impact investment models.”

Mila Lukic OBE, CEO of Bridges Outcomes Partnerships, echoed this: “This more flexible, more collaborative approach has already helped improve the lives of hundreds of thousands of people. We are hugely grateful to all our investors for supporting this fund, which ensures impact-seeking capital reaches those who need it most.”

The Path Ahead

With its target size achieved, the SDG Outcomes Fund is now set to scale and deepen its impact. By continuing to test and expand this performance-based funding model, the fund aims to shift how development finance is structured—offering greater transparency, local ownership, and measurable results.

In a world where development needs far exceed public resources, the SDG Outcomes Fund stands as a new benchmark for accountability, efficiency, and catalytic capital—one that may define the next generation of sustainable finance.