Catalytic Leverage

L_cat

Definition

The ratio of total capital mobilized to catalytic capital deployed. Measures the multiplier effect of concessional capital in attracting additional investment. Higher L_cat indicates more efficient use of scarce catalytic resources.

Formula

L_cat = (C_catalytic + C_crowded_in) / C_catalytic

Example

A facility deploys $25M in concessional capital and attracts $75M in commercial co-investment. L_cat = ($25M + $75M) / $25M = 4.0×. Each dollar of catalytic capital mobilized $4 total.

Source

UACC Section 5.1

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Related Terms from Unified Architecture for Catalytic Capital

Unified Architecture for Catalytic Capital (UACC)

Five Functional Layers

Layer 1: Risk Absorption

Layer 2: Temporal Smoothingτ_smooth

Layer 3: Crowd-In

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Unified Architecture for Catalytic Capital