Featured GIIN Publication

Catalytic First-Loss Capital

Global Impact Investing Network October 10, 2013

Catalytic First-Loss Capital is an issue brief released by the Global Impact Investing Network (GIIN).

The issue brief details the motivations, benefits, considerations and suitable scenarios behind the use of catalytic first-loss capital in impact investing transactions. Catalytic first-loss capital refers to socially- and environmentally-driven credit enhancement provided by an investor or grant-maker who agrees to bear first losses in an investment in order to catalyze the participation of co-investors that otherwise would not have entered the deal. Catalytic first-loss capital has gained recent prominence in impact investing dialogue as more investors look to enter the market.