WHAT IS CATALYTIC CAPITAL?
WHAT IS CATALYTIC CAPITAL?
Catalytic capital is a form of investment that allows traditional, risk-averse capital to invest into higher-risk impactful projects with strong social and environmental outcomes.
There are billions of dollars’ worth of potential investment opportunities that have strong, impactful, social and environmental outcomes that are unable to attract commercial investment due to a risk/return mismatch.
By providing concessional capital into projects – capital that is willing to take on lower returns or higher risk - we can ‘unlock’ commercial capital and catalyse a wave of private investment into climate projects.
WHAT WE SUPPORT
WHAT WE SUPPORT
We support projects that have a clear and measurable benefit of decarbonising our energy systems and sequestering carbon from the atmosphere. We also seek projects that have identifiable social and biodiversity co-benefits.
We work with foundations, not-for-profits and philanthropy to place capital into high impact projects. We also work with investment teams to help structure sub-economic, yet impactful, projects to receive catalytic capital.
HOW WE DO IT
HOW WE DO IT
• We identify impact climate projects where there is a barrier to investment and source funding from impact, philanthropic and commercial investors.
• We create a capital stack that overcomes barriers and reduces cost of capital. This may include philanthropic funding being used to reduce risk, increase returns or seek regulatory change where there is a material misalignment between value and profit in the market.
• We structure tax efficient vehicles with a clear governance process to assess impact, returns and avoid conflicts for participants.
