The Bellagio participants gather to discuss innovative strategies.
Baraka Impact Finance and the Alliance co-hosted a Rockefeller Foundation Bellagio Center Convening in December to identify and develop innovative strategies that increase private sector investment in healthcare across emerging and frontier markets, where over half of the world’s population remains underserved.
With recent US policy shifts on foreign assistance coupled with traditional funding sources on a downward trajectory globally, the urgency to mobilize private finance for health solutions in underserved communities has never been more critical.
“These seismic changes to global health financing significantly heighten the urgency to better engage private finance in health solutions for the underserved,” said James Bair, Baraka Impact Finance Partner and Managing Director. “This is the big, hairy, audacious problem we came together in Bellagio to address, and this is the work we must continue in 2025 and beyond.”
The three-day convening brought together a diverse brain trust of global health financing experts from prestigious organizations, including the World Bank, US International Development Finance Corporation, the Council on Foreign Relations, and Alliance members Merck Impact Venture Fund, Drugs for Neglected Diseases initiative, Madiro Fund, and Stanford University, along with other academics, corporations, and investors.
The convening focused on overcoming bottlenecks to capital deployment and accelerating investments in equitable health solutions for emerging and frontier markets. Among the proposed strategies were the development of financial products tailored to de-risk investments, the utilization of blended finance to enhance investability, and strategic communications to build the case for investment.
Long-term systemic shifts
Krista Donaldson, Director of Innovation to Impact at Stanford Mussallem Center for Biodesign and Alliance board member
Participants at the convening stressed the importance of long-term systemic shifts to embed health equity within mainstream investment strategies. They advocated for intersectional approaches that align health investments with global priorities like climate-health to widen investor engagement and increase capital flow into health financing for emerging markets. They also emphasized the need to develop robust health impact metrics and equity-driven measurements to encourage financial market regulators to integrate health equity indicators into impact investing frameworks. Additionally, the engagement of next-generation leaders was highlighted as essential for driving innovation and mobilizing sustained capital commitment to health equity, leveraging digital platforms to involve younger investors in equity-focused funds. Finally, participants agreed that health equity should be the starting point and driving force behind all health investments, ensuring that capital is directed toward communities facing the greatest health disparities.
Next steps
The Bellagio participants outlined several next steps to enhance private capital investment. These include developing a data-driven “case for investment” to boost investor confidence; co-designing funding models that integrate philanthropic, concessional, and commercial capital to attract diverse private capital, mitigate risks, and enhance returns; and conducting a comprehensive investor sentiment analysis and market engagement strategy.
James Bair, Partner and Managing Director at Baraka Impact Finance, talks through what the group has outlined.
To support these strategies, the group recommended expanding data visibility and access. This involves enhancing the availability of real-time, actionable data on health sector opportunities, thus de-risking investment decisions and making the investment landscape more transparent. Furthermore, the convening highlighted the need for standardized impact measurement in health equity. By developing clear and consistent health equity impact measures and KPIs, investments can be more accurately assessed for their long-term societal benefits.
Finally, a communications and ecosystem amplification strategy is set to be developed to amplify the message about health investment opportunities and capital needs, aiming to shift investor mindsets and encourage broader engagement in health equity initiatives. The Alliance’s panel at the J.P. Morgan Healthcare Conference in January was the first discussion in the broader dissemination strategy.
“The expected outcomes of the convening are ambitious,” said Sara Anderson, Alliance Executive Director. “The Bellagio group’s work aims to unlock new capital sources, strengthen finance tools to de-risk investment, and improve the viability and visibility of health investments as commercial opportunities. These efforts are crucial for accelerating progress on global health goals and ensuring equitable health outcomes worldwide.”
