This paper is organized into three inter-related sections, each with case studies presenting details on the process of innovation within the blended value investing arena. The first section explores innovation in debt finance. It has two subsections. The first subsection presents the process by which loans to microfinance institutions are “packaged” as financial securities that offer the opportunity to expand the capital available to such funds. These developments serve as examples of what could take place in other emerging areas of investing. The second subsection explores another novel application of debt finance applied in the realm of community investing, which further investigates how blended value investing strategies can be made accessible to individual investors. The second section presents cases in which credit guarantees and enhancements have been used to manage the risk (perceived and real) associated with various blended value investment opportunities. In several cases, such enhancements helped other investors price risk more accurately so that ultimately capital could flow more freely to those investments. The third section presents private equity investing innovations, which provide risk capital to new funds and enterprises that generate both social/environmental impacts as well as economic value and returns. Those attending the discussions at the Forum in Geneva asked that several of the anecdotal stories of participants around the table be brought together and formally presented to others interested in understanding more about: • How these deals evolved; • The challenges of structuring them; • The possible prospects such investing practices hold for broader application by others interested in creating innovations in capital finance. This paper is offered not as a fully comprehensive survey of the emerging area of blended value investing, but rather as a set of examples of how such investing practices are being developed and applied around the world. The paper’s intent is not to provide a single answer for all investment challenges, but to demonstrate how groups of investors are mobilizing capital on new terms to meet the challenges of emerging investment opportunities, as well as the demands of investors seeking out new asset classes in which to place their capital. While the paper presents part of the history of groups and individuals who have worked to advance these practices, it is does not present a history of the field or a comprehensive overview and should not be taken as such. Other documents by CGAP, ACCION and related groups should be sought out by readers looking to understand how, specifically in the area of microfinance, various instruments and approaches have evolved. This paper presents innovations in capital finance that promise to bridge market-rate interests with strategic opportunities to create blended value that benefits shareholder and stakeholder alike. The following examples speak to an evolving capital convergence wherein mainstream capital markets and investing will increasingly become drivers of new solutions to historic problems. Blended value investing funds and instruments offer financing strategies from a set of tools that go beyond traditional philanthropy or market rate investing and which complement the vision we all share of a world with greater equity and opportunity for its members. This paper also identifies several areas of research that would help advance the field of blended value investing. In summary, those projects include the following: • An in-depth survey of blended value investors that would ultimately segment the market and identify strategic investor groups and categories; • An inquiry into blended value portfolio theory to understand how investors have applied modern portfolio theory concepts and analytics to building diversified blended value portfolios; • A deeper inquiry into applying lessons learned from microfinance to other blended value systems. Finally, the paper concludes with words of caution that suggest a prudent approach to developing blended value capital markets. It offers a critique of the state of the markets, presents a strategic vision for the blended value capital markets, and suggests specific steps that participants might take in moving toward the ideal.