Welcome to the Toniic course on Catalytic Capital. The course is designed for investors and philanthropists interested in deploying risk-tolerant and sub-commercial capital in order to generate positive impact and enable third-party investment that otherwise would not be possible.
Toniic has undertaken a three-year project to support the deployment of “catalytic capital” among High Net Wealth Individuals (HNIs) and Family Offices. This work is supported by the Catalytic Capital Consortium (“C3”), a donor collaborative working to broaden the use of catalytic capital among a wide range of investors. Our project began with understanding the attitudes of HNIs and Family Offices towards catalytic capital, investigated the barriers towards greater deployment, and resulted in this course that provides both an overview of catalytic capital as well as practitioner-oriented information, including case studies of investments and catalytic capital portfolios.
You can access the research report that inspired this Catalytic Capital course at this link.
INSPIRE
Building on Toniic’s understanding of the motivations HNIs and Family Offices have for deploying catalytic capital, Module 1 is designed to inspire you to open up more of your portfolio to investments with the potential to generate a positive impact that would otherwise not be possible.
Case studies and “real-life” examples form an important part of this module. Throughout the lessons, we demonstrate the power of catalytic capital to address social and environmental challenges ignored by conventional capital.
At the end of this module, you will identify and articulate your own motivations for deploying more catalytic capital.
Module One
Introduction
Welcome to module 1 of the catalytic capital course.
What is Catalytic Capital?
In lesson 1, we define catalytic capital and when it is used.
Why Deploy Catalytic Capital?
In lesson 2, we explain why investors include catalytic capital in their portfolios.
Learning from Others
In lesson 3, we present the history of catalytic capital and the gap it seeks to fill. We also introduce the Catalytic Capital Consortium.
How Catalytic Capital Enables Impact?
In lesson 4, we will describe how catalytic capital enables outsized impact.
Perceived Barriers and How to Overcome Them
In lesson 5, we discuss barriers to the deployment of catalytic capital, and how you can overcome them.
Conclusion:
Here we summarize the learnings of the first module of the catalytic capital course.
INFORM
This module presents various approaches to investing catalytic capital, with the aim of helping you experience the various ways to be a catalyst and target capital gaps.
The lessons provide examples where investors have accepted longer time horizons, taken on more risk for the same expected return, or agreed to lower / uncertain returns for the same risk as commercial investors.
Module Two
Introduction
Welcome to module 2 of the Catalytic Capital Course
Defining Catalytic Capital
In lesson 1, we introduce the capital gaps that catalytic capital addresses.
Forms of Catalytic Capital
In lesson 2, we describe the forms of catalytic capital. For each form, we present two case studies.
Roles and Stages of Catalytic Capital
In lesson 3, we cover the Roles of Catalytic Capital. Where and When is Catalytic Capital Needed?
Challenges of the Seeding Stage of Catalytic Capital
HNIs and Family offices tend to be more active in the seeding stage of catalytic capital. In lesson 4, we address the major challenges of this stage.
Conclusion
Thanks for watching our second module of the Catalytic Capital Course.
IMPLEMENT
The module describes alternative approaches followed by HNI and Family Offices catalytic capital investors with real-life examples.
It also provides you with examples of how to integrate catalytic capital in your investment policy statement if you are working with an advisor, and an investment decision model to assess whether catalytic capital is needed for a specific investment.
Finally, the module provides additional resources for catalytic capital investors.
Module Three
Introduction
Welcome to Module 3 of the Catalytic Capital Course
Investor Case Study 1: Ceniarth
Greg Neichin, Managing Director at Ceniarth, introduces us to the case study of a single-family office focused on deploying catalytic capital for market-based solutions that benefit underserved communities.
Investor Case Study 2: Amy Brakeman
Amy Brakeman is an HNI investor working toward a just and sustainable economy. She presents her investment thesis and how she manages her asset allocation and catalytic capital portfolio.
Integrating Catalytic Capital in your Investment Policy Statement
Lesson 3 presents practical approaches to integrating catalytic capital into an Investment Policy Statement.
Assessing the Need for Catalytic Capital
Lesson 4 introduces an investment decision model to evaluate the appropriateness of providing catalytic capital in a particular investment.
Resources for Catalytic Capital Investors
Lesson 5 recommends additional resources for catalytic investors.
Conclusion
Thanks for watching our Catalytic Capital Course!