This report explores ‘catalytic capital’ and the many ways it has been used by a variety of impact-oriented investors to fill financing gaps, enable third-party investment, and generate impact that would not otherwise be possible. Catalytic capital helps impact enterprises overcome barriers to accessing more conventional market-rate investment, and in blended finance, plays a critical role in bridging the gap between the terms required to facilitate investments that contribute to achieving the SDGs and the terms available from conventional market-rate investors
The report seeks to provide a broad overview of existing research on the topic and a foundation for existing and potential investors of catalytic capital to expand and improve upon their use of this important tool.
