MacArthur launches $150 Million Catalytic Capital to Address Critical Social Challenges

MacArthur has launched Catalytic Capital Consortium dedicating $150 million to help address critical social challenges. MacArthur is joined in this effort by leading impact investors The Rockefeller Foundation and Omidyar Network, who will add their expertise and financial resources to the Catalytic Capital Consortium.

MacArthur is joined in this effort by leading impact investors The Rockefeller Foundation and Omidyar Network, who will add their expertise and financial resources to the Catalytic Capital Consortium. Catalytic capital is investment capital that is patient, risk-tolerant, concessionary, and flexible in ways that differ from conventional investment

As the SDGs face an annual $5 trillion to $7 trillion financing gap, catalytic capital can help meet the demand for more capital across the risk-return spectrum, complement and pave the way for conventional investment, and mobilize additional capital through a range of blended finance solutions.

The Catalytic Capital Consortium will increase awareness, understanding, and use of catalytic capital as an investment tool, ultimately helping more enterprises secure the financial support they need to grow and scale social and environmental solutions that could improve millions of lives.

MacArthur President Julia Stasch said, “Catalytic capital is needed for impact investing to realize its full potential. While impact investing is growing rapidly, much of the attention focuses on market-rate returns, leaving a serious gap in financing opportunities for many promising impact enterprises and funds that could help address critical social challenges.”

Stasch further added, “The Catalytic Capital Consortium will help more investors appreciate the importance of this type of capital in yielding deeper, more sustainable impact for people and the planet.”

Since it was launched in 2015, The Rockefeller Foundation’s Zero Gap grant portfolio has grown to nearly 50 unique financial structures across 28 countries.

MacArthur’s matching investment in Zero Gap builds on this work, marking a unique impact investing collaboration between two foundations, where each will invest $30 million with the aim of catalyzing at least $1 billion in new capital to help meet the SDGs.

These funds will be managed by The Rockefeller Foundation’s new impact investment management platform, Rockefeller Foundation Impact Investment Management, which aims to tap into mainstream markets and investors, scaling up investments into promising new finance vehicles that help to close the SDG funding gap.

President of The Rockefeller Foundation, Dr. Rajiv Shah said, “The math is simple: The cost of solving the world’s most critical problems runs into the trillions of dollars.”

Dr. Shah further said, “Currently, more than $200 trillion in private capital is invested in global financial markets. Closing this financing gap is our urgent task, and we’re deeply humbled to manage this significant investment by The MacArthur Foundation toward that essential end.”

The balance of MacArthur’s $150-million catalytic capital allocation will provide matching investments to a select cohort of funds and other intermediaries that demonstrate a powerful use of catalytic capital with the potential for significant impact addressing the SDGs.

To date, MacArthur has invited proposals from impact investment efforts across emerging and developed markets to apply for its matching capital commitments.

These funds and other intermediaries address a wide range of issues aligned with the SDGs, such as forest conservation, sustainable agriculture, inclusive entrepreneurship, education, reproductive health, energy access, and refugee finance. MacArthur will announce additional specific investments later this year.

Additionally, MacArthur, The Rockefeller Foundation, and Omidyar Network will dedicate $10 million over three years to grants that fuel learning and market development, helping illuminate when and how catalytic capital can be most effective and what additional tools and practices are needed for impact investors.

Prior to this collaboration, MacArthur, The Rockefeller Foundation, and Omidyar Network have collectively deployed more than $900 million in catalytic capital as part of their broader impact investing.

Building on this experience, the Catalytic Capital Consortium will demonstrate the power of catalytic capital and spark inquiry, exploration, and learning in the growing impact investing community.

  • Avatar Takele Teshome says:

    Thanks for sharing this important information. But, how can a a social business or a national NGO apply to secure funds. Please let me know

    • Avatar Akshita Kandari says:

      Hi Takele Teshome,

      FundsforNGOs is a social enterprise that provides fundraising guides, resources, and the latest funding opportunities to help you fundraise better and secure grant funding. We are not a funding organization.

      You can visit our website to get many opportunities on various categories. To get detailed information, please visit: https://www2.fundsforngos.org/

      We also offer the FundsforNGOs Premium membership, offering exclusive access to the Premium grant database, grant alerts, resource guides, and sample proposals. To learn more please visit: https://premium.fundsforngos.org/.

      Good luck!

  • Avatar Annet says:

    Good initiative; do you fund start ups in Uganda?

  • Avatar Natal Ayiga says:

    Your announcements are exiting. However, many people in poor countries, especially those interested in research funding opportunities, are unable to participate because of the subscription costs involved. Are there other opportunities for individuals like myself who cannot afford subscription costs? Kindly advise.

    • Avatar Akshita Kandari says:

      Hi Natal Ayiga,

      FundsforNGOs is a social enterprise that provides fundraising guides, resources, and the latest funding opportunities to help you fundraise better and secure grant funding. We are not a funding organization.

      Please check out the many resources available on our site at: https://www.fundsforngos.org/.

      Good luck!

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