Alternative financial instruments in the context of human-centered business development

Abstract

The essential characteristics of alternative financial instruments that can be involved in the development of human-centered business are substantiated as the theoretical background within our article. The peculiarities and classification of alternative investments in the context of strengthening human-centric business are substantiated. The key parameters of attracting financial resources through different types of alternative investments are identified. The article provides the analysis of social bonds’ issuing process for human development and the structural components of the mechanism of social bonds’ implementation. Different forms of social bonds’ manifestation depending on the specifics of their use at the national level are considered. The process of implementing the mechanism of social bonds is considered as the complex of the following components, namely: material resources of investors who are interested in solving social problems; approved at the state or regional level program of coordination of efforts aimed at solving social problems; the obligation of public authorities or specialized funds to make payments to investors for social goals’ achieving. A matrix of mezzanine financing characteristics is constructed, where a comparative characteristic of mezzanine financing, direct investments and debt financing is given. Examples of the use of Islamic finance instruments that have a human-centric spectrum of action are given. Conclusions on the specifics of the use of alternative financial instruments at the global level are provided. The potential of alternative investment development in Ukraine is defined.