At BII we have always been in the business of taking risks in exchange for impact. Our mission is to help solve the biggest global development challenges by investing patient, flexible capital in impactful businesses.
In 2014, we took this a step further. We introduced a separate pool of capital with the goal of achieving enhanced development impact by embracing a flexible approach to risk. While still seeking a positive financial return at the individual investment level, the strategy sought to transform markets by targeting high-impact investments in sectors and geographies where risks were not always fully compensated by additional returns. We named the resulting portfolio ‘Catalyst’.
Ten years on, we have committed $1.6 billion of Catalyst capital to 91 businesses and funds through 120 transactions. We have built a high impact portfolio that, at the end of 2023, was supporting over 108,000 jobs, contributing to over 324,000 megawatt-hours (MWh) of power production – 100 per cent of which is renewable – and reaching over 7.7 million farmers.
This report celebrates a decade of Catalyst investments into nascent markets and innovative solutions that promote pioneering impact.Drawing from our decade-long experience managing a capital pool that targets enhanced development impact, we’ve distilled five key insights that may guide other like-minded investors as they consider incorporating a high impact portfolio into their asset allocation strategy:
- Lesson 1. Maintaining clarity of purpose and discipline is critical
- Lesson 2. An enhanced impact allocation can strengthen broader understandings of impact across an organisation
- Lesson 3. Capital preservation (at a minimum) is possible when taking a flexible approach to risk
- Lesson 4. A strong learning culture is crucial to success
- Lesson 5. Catalysing markets requires patience and partnerships
We are sharing what we’ve learned in the hope that like-minded investors may benefit from our journey and insights. The Catalyst portfolio is young and continues to evolve to meet the changing needs of the markets in which we invest. However, now feels like an appropriate time to take stock of our portfolio and reflect on our experience and lessons to date.
On Tuesday 3 December we’re hosting an event to celebrate a decade of impact achieved by BII’s Catalyst Portfolio and explore the lessons we’ve learnt along the way. Click here to find out more and register your place
