Risk tolerance is the most critical hallmark of catalytic capital, but other factors can include being concessionary from a return perspective and flexible regarding key investment terms. It is a subset of a full continuum of capital, from grants to completely commercial risk-adjusted capital. What is “catalytic capital?” How is it distinguished from flexible, long-term capital? Or is it the same?įor sure there is an overlap-patient, flexible capital is a form of catalytic capital-but catalytic capital is broader. OFN spoke with Debra Schwartz, Managing Director of Impact Investments at MacArthur, about catalytic capital and the Consortium: what it means, where it works, to whom it’s geared, and where CDFIs fit in. Additionally, MacArthur, The Rockefeller Foundation, and Omidyar Network will dedicate $10 million over three years to grants that fuel learning and market development. MacArthur has dedicated $150 million to the Consortium to provide matching investments to intermediaries demonstrating powerful uses of catalytic capital, with potential for significantly addressing the UN Sustainable Development Goals (SDGs). MacArthur Foundation launched the Catalytic Capital Consortium with partners The Rockefeller Foundation and Omidyar Network.Ĭonceived of and led by MacArthur, the Consortium is an investment, learning, and market development initiative promoting greater, more effective use of catalytic capital in realizing the full potential of impact investing. Voices Catalytic Capital: Q&A with MacArthur Foundation’s Debra Schwartz
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