The Project
Total Impact Capital designed Total Impact Notes to support the deployment of catalytic capital to high-impact enterprises that have the potential for scale, but that face a financing gap. With this liquid, de-risked product, the firm aims to attract impact-oriented capital from a broader range of private-sector investors to support enterprises and solutions that have proven their value, but that still face constraints in accessing existing debt products.
Value and Outcomes
The Notes complement existing funding from development finance institutions, foundations, and other impact investors, helping enterprises scale up work on behalf of low-income communities and, over time, as Notes are paid off, redirecting capital towards earlier stage vehicles. The product is designed with a clear focus on UN Sustainable Development Goals (SDGs), the intention to recycle funding, and de-risking with blended finance and technical services. It is a promising mechanism to use catalytic capital in blended finance structures to source institutional capital more widely across regions and sectors. There is significant potential for replicability as well as the opportunity for relevant learnings for the field.
For more information on Total Impact Capital, visit their website.