How wealthy individuals & family offices are embracing catalytic capital
catalytic capital is becoming increasingly necessary. Catalytic capital aims to go beyond immediate profits to create a sustainable impact on environmental and social issues. Providers of catalytic capital include governments, corporates, business owners, and investors who look to achieve a twin objective – a positive social/environmental impact followed by a financial return on investment.
Business owners and wealthy individuals are increasingly taking responsibility for protecting the natural and social environment by contributing financial and human resources. Though catalytic capital is not very popular in India, families are providing long-term capital and using their might within their circle of influence to promote causes by investments that go beyond impact investing. Business families and founders generally begin by providing such catalytic capital in areas of their expertise.
A financial services founder finds unique ways to support microfinance organisations that help provide reasonable-cost finance to low-income families and micro businesses. Similarly, businesses into chemicals and fertilisers increasingly provide sustainable farming technology to small and marginalised farmers. Families in logistic businesses support supply chains that enable efficient farm-to-fork movement to benefit small farmers and transporters while making food delivery more economical.
Solar technology is finding support from families in energy and energy equipment businesses, while healthcare finds increasing support from pharma company promoters. EdTech finds support from IT promoters who can guide effective yet scalable solutions. And causes like gender equality, climate change, girl child education, waste management, and water
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