The MacArthur Foundation wants to call attention to the need for financing that doesn’t seek market-rate returns to help impact investing grow and achieve its potential. To that end, it has created the Catalytic Capital Consortium and committed $150 million in "patient financing."
As interest in impact investing — the idea that investments can also generate social or environmental benefits — has grown, there’s been a disproportionate focus on deals that promise market-rate financial returns, says Julia Stasch, president of the foundation. Those investments will not be enough to solve the tough problems the world faces, she says, which is why MacArthur is shining a spotlight on "catalytic capital."
"It is patient, risk-tolerant, concessionary, and flexible in ways that really are different from conventional investment," she says.
Read more of The Chronicle's article here.