Tyton Partners Releases New Report on Catalytic Capital’s Role in Strengthening the Education-to-Workforce Pipeline

Report provides a fresh perspective on funding gaps and calls for investors to deploy catalytic capital to drive systemic change

BOSTON, April 08, 2025 (GLOBE NEWSWIRE) -- Tyton Partners, the strategy consulting and investment banking firm connecting capital, innovation, and impact in education, today released its latest report, Catalytic Capital: Funding the Missing Middle in the Education-to-Workforce Ecosystem. The report, supported by World Education Services (WES) and Strada Education Foundation, sheds light on a persistent funding gap preventing scalable solutions in workforce development and calls on impact investors to embrace catalytic capital as a transformative funding strategy.

The education-to-workforce pipeline in the U.S. is fractured, leaving millions of learners and workers without viable pathways to sustainable careers. While philanthropy and market-rate investment play critical roles, they leave a “missing middle”—high-impact initiatives that fail to attract traditional funding due to their risk-return profile. Catalytic capital, which is patient, flexible, and impact-first, can bridge this gap, unlocking scalable solutions and accelerating workforce innovation.

“The urgency for new funding strategies in workforce development has never been greater,” said Andrea Mainelli, Senior Advisor at Tyton Partners. “Catalytic capital has been successfully deployed in sectors like climate and microfinance, yet it remains underutilized in education-to-workforce initiatives. This report provides a blueprint for how investors can mobilize capital in ways that drive systemic, lasting change.”

Key insights from the report include:

• Catalytic capital is not new—It has been deployed for decades by development finance institutions and foundations to solve large-scale social challenges.
• A critical funding gap persists—Traditional capital ignores high-impact opportunities that lack immediate financial returns, while philanthropy alone is insufficient.
• Market failures require intervention—Three distinct market failures—nascent markets, subsidized markets, and broken markets—demand catalytic capital solutions.
• Investors can take action now—Flexible capital strategies can unlock workforce solutions at scale, from student-friendly financing models to career navigation platforms.

To develop these insights, Tyton Partners conducted extensive research, including interviews with impact investors and a review of over 30 leading studies on catalytic capital and blended finance.

The report calls on investors, foundations, and policymakers to rethink their funding strategies and integrate catalytic capital into their portfolios. “The time is now to embrace more flexible and holistic approaches to impact investing—ones that go beyond the traditional limits of grants and market-rate investments to unlock greater potential for meaningful change," said Sean Crowley, Senior Manager of Investments at World Education Services.

Tyton Partners invites investors and ecosystem leaders to explore the findings and engage in discussions on how catalytic capital can drive workforce transformation.

Read the full Catalytic Capital: Funding the Missing Middle in the Education-to-Workforce Ecosystem report here.

Media Contact
Zoe Wright-Neil
Director of Marketing and Business Development
zwrightneil@tytonpartners.com
Tyton Partners

About Tyton Partners
Tyton Partners is the leading provider of strategy consulting and investment banking services to the global knowledge and information services sector. With offices in New York City and Boston, the firm has an experienced team of bankers and consultants who deliver a unique spectrum of services from mergers and acquisitions and capital markets access to strategy development that helps companies, organizations, and investors navigate the complexities of the education, media, and information markets. Tyton Partners leverages a deep foundation of transactional and advisory experience and an unparalleled level of global relationships to make its clients’ aspirations a reality and to catalyze innovation in the sector. Learn more at tytonpartners.com.

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