Catalytic capital
Sustainability - investment - loan markets.
Catalytic capital means initial investment - or investor groups - that accept potentially lower risk-adjusted returns, in order to prove a concept and encourage further investment by others.
"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.
Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.
The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."
(Source - Big Society Capital)
See also
- Big Society Capital
- Blended finance
- Capital
- Concessionary
- ESG investment
- Green Bond Principles
- Guarantee
- Investment
- Investor
- Proof of concept
- Return
- Risk-adjusted return
- Risk tolerance
- Social Bond Principles
- Social impact bond
- Social inclusion bond
- Social investment
- Social loan
- Social Loan Principles
- Social project
- Subsidy
- Sustainability bond
- Sustainability Bond Guidelines
