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The third functional layer where catalytic capital leverages additional investment beyond its own deployment. Crowd-in occurs when concessional terms, de-risking, or demonstration effects attract commercial capital that would not otherwise participate.
The Asian Development Bank's climate fund deploys $100M in concessional capital that attracts $400M in commercial co-investment, achieving a 4:1 crowd-in ratio through risk mitigation and technical assistance.
UACC Section 2.3