Australian trusts and foundations have deployed an estimated $100 million in higher-risk, impact-focused investments over the past three years, according to GoodWolf Partners. With Australia’s philanthropic sector holding around $50 billion in endowments, the research points to significant untapped potential for using capital to drive social and environmental change.
Commissioned by the Paul Ramsay Foundation, Unlocking Catalytic Capital in Australia, finds that while a small group of organisations currently lead the market, momentum is building.
75% of surveyed organisations plan to increase their use of catalytic capital over the next three years, with respondents expecting to deploy $5 million–$20 million each by 2029.
For 95%, the primary role is building a track record that can attract follow-on investment, with unlocking additional capital and supporting innovation also key motivations.
The biggest barriers are internal: policies and investment mandates rank ahead of a lack of suitable opportunities.
GoodWolf authors Nina Yousefpour and Loretta Bolotin say the next step is moving from isolated examples to a more coordinated market-building effort, with better data, clearer language, stronger intermediaries and more confident investment committees.
Government can also help through policy, risk-sharing and market infrastructure.
The $100 million estimate is only a starting point. The research covers philanthropic trusts and foundations, excluding government, institutional and corporate investors. "The true opportunity is considerably larger," Yousefpour says.