Capital Stack Tensor

Definition

A three-dimensional mathematical representation mapping capital across type (i), instrument (j), and time (t). The tensor allows precise characterization of blended finance structures and enables optimization of capital allocation across the five functional layers.

Formula

C_ijt where i ∈ {grant, concessional, commercial}, j ∈ {equity, debt, guarantee}, t ∈ [0, T]

Example

A climate facility's tensor might show: C_grant,equity,0 = $10M (initial grant capital as equity), C_concessional,debt,5 = $30M (concessional loans at year 5), C_commercial,debt,10 = $60M (commercial debt at year 10).

Source

UACC Section 3

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Capital Stack Tensor

Definition

Formula

Example

Source

Related Terms from Unified Architecture for Catalytic Capital

Explore the Full Glossary

Capital Stack Tensor

Definition

Formula

Example

Source

Related Terms from Unified Architecture for Catalytic Capital

Explore the Full Glossary