There is a persistent financing gap estimated at USD 4.2 trillion that needs to be filled for the world to achieve the Sustainable Development Goals (SDGs) in 2030. There is a need to mobilise both public and private capital to address the gap, yet public funding for international development has stagnated over the last decade and there continues to be disparities in the regions and sectors that receive global investment.
Deployment of catalytic capital, or investments that address capital gaps left by government and mainstream capital, has the potential to generate social and environmental outcomes that otherwise could not be achieved. Catalytic capital can support investment opportunities which do not fit the risk-return profile or other conventional investment expectations that markets require.
This report aims to support investors to gain deeper understanding on catalytic capital practices in Asia, Africa, Latin America, and Europe, and allows them to tap into its potential and enable its effective deployment on a global scale. Insights were derived from targeted engagements with social investors from four social investor networks: AVPN, Latimpacto, AVPA, and Impact Europe.
Supported by the Catalytic Capital Consortium (C3), the report maps the practice of catalytic capital across various thematic areas, and surfaces shared and unique trends, best-practice case examples, and offers lessons from investors active in the four regions on ways to effectively integrate catalytic capital into investment portfolios.
Investors at various stage of their catalytic capital journey can utilise this report to build their understanding about the practice, as it has emerged in a diversity of contexts, and translate knowledge to action, by addressing capital gaps for impact in their regions.
Click here for more information on Catalytic Capital in Asia.
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