On this episode, Kevin chats with Kristian Peterson about his two decades of experience as managing partner at Catalyst, where he's refined impact investing to create both profit and positive change in investment communities. The conversation explores the polarizing response their impact investing strategy receives from the marketplace and how Catalyst quantifies social impact through an ingenious scorecard that objectively assesses impact independently from financial analysis. Kristian explains their innovative dual-mandate fund structure with two classes of investors—one embracing lower returns for the greater good while the other seeks market-rate returns—and the thinking behind this boundary-breaking approach. They discuss the art of allocating joint venture equity and why having top-notch local development partners is crucial for successful impactful development deals. Kristian shares his fiduciary mindset navigating the balance between short-term gains and long-term vision, and how Catalyst has weathered generational challenges in real estate including Covid, supply chain disruptions, inflation, high interest rates, soaring operating expenses, and higher property taxes. His expertise reveals how resilience and innovation keep Catalyst at the forefront of impact investing while demonstrating that you can make a positive difference in the world through strategic investment decisions.
