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In: Finance

under Catalytic capital, what does invest strategically means ? please discuss in details

under Catalytic capital, what does invest strategically means ? please discuss in details

Solutions

Expert Solution

Followings are the meaning of strategically investment under catalytic capital:

  • Catalytic capital means the investment capital which is risk tolerant, flexible and conventional investment which is used to bridge capital gaps.
  • Investors like social enterprises would like to invest in catalytic capital strategically, because it will help to raise funds and mitigating risk in adverse situations.
  • Risk-return spectrum is used to make conventional investment and mobilize additional capital through financial solutions.
  • Through strategic investment in catalytic capital sustainable capital growth can be achievable, which will increases the annual returns for the organisation.
  • It is one kind of flexible investment opportunity which can play de-risking role in building track records for the investment portfolio. So that investors will get an idea about financial status of the company.
  • Catalytic capital can be used in the form of debt, equity or guarantees. As a result the company will maximize their earnings on quarterly basis.
  • Through implementation of strategy it will fill the financing gaps as a convergence tool. Hence blended capital structure can be utilize effectively.

All the best for your exam! Thank you!


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