Development finance institutions, what readiness means to a DFI

Questions to prepare for a DFI conversation

• Additionality in the technical sense. Documented evidence, in the fund's investment policy and sourcing process, that the fund reaches companies or geographies that would not receive capital without the DFI's involvement.
• ESG as infrastructure. A written ESG integration framework, a portfolio company monitoring approach, and a named ESG contact in place before the DFI conversation begins, not a policy drafted in response to the request.
• In-country relationships. Demonstrated existing relationships with founders and co-investors in the target geography, since a thesis about a market is not a substitute for access to that market.

Where the timeline catches GPs off guard

Ask the institution about its current process, approvals and likely timing before relying on it for a close. Leave room for diligence and negotiation in your own plan. Side letters may cover development, environmental, social and reporting obligations; review the specific requirements and what your team can deliver with counsel.

Show your experience in the target market

Make the team’s relevant investment experience, local relationships and operating presence visible. Explain which evidence supports access to the market and where you still need partners or capacity. A personal connection alone is not proof of an investment capability. Take domicile and cross-border structuring questions to fund counsel.