Empowering Global Enterprise: Structuring a Financial Facility for Women Entrepreneurs

The Goldman Sachs Foundation's 10,000 Women Initiative needed a financial structure that would allow it to eventually recoup its investment in women entrepreneurs. Traditional financial returns were not a priority. A WhiteLabel partner proposed a then-novel "catalytic capital facility" using a layered investment structure. This structure placed the Goldman Sachs Foundation in the "first-loss" position, meaning they'd absorb initial losses, effectively subsidizing other investors with lower risk tolerances. The model allowed the Foundation to provide crucial funding for women entrepreneurs with the potential to recoup its investment while creating a compelling return stream to “crowd-in” more commercial investors. The success of this facility has become a benchmark within the world of innovative finance.