Early in my learning, I participated in an impact investing institute held by Mission Investors Exchange (MIE) that helped me to learn what impact investing is and how to get started. While impact investing runs the gamut from below-market rate to market-rate investing, at the MIE institute, I began to understand how foundations can use a portion of their endowment to de-risk and unlock investments from other investors. This “catalytic capital” is defined as investment capital that is patient, risk-tolerant, concessionary and flexible in ways that differ from conventional investment. That ability of foundations to leverage their endowment to spur more investment—and potentially deeper more durable change—really resonated with me.
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