Calvert Impact Capital Expands Work in Under-Resourced Communities Globally; Exceeds $500 Million in Community Investment Note® Balance
Oct 01, 2020 | Bethesda, MD
Calvert Impact Capital, the mission-driven financial institution dedicated to creating a more equitable and sustainable world, announced today that its Community Investment Note® balance has exceeded $500 million for the first time as its work to support global, under-resourced communities expands during this year of unprecedented social, environmental, and economic challenges.
This represents a significant milestone for the 25-year-old firm, recently named “Asset Manager of the Year: Mid-Sized” by Environmental Finance’s 2020 IMPACT Awards, and serves as yet another indicator of the increasing popularity of investing for positive social and environmental impact alongside financial returns. Heightened interest from investors has been matched by robust deployment from Calvert Impact Capital, which has approved more than $135 million in new financing to date in 2020. Calvert Impact Capital lends to and invests in organizations working across all 50 states and in over 100 countries around the world that are creating affordable housing, financing small businesses, delivering renewable energy, and more.
“Our investors are passionate, and our portfolio partners are eager to access new credit,” said Justin Conway, Vice President of Investment Partnerships. “We are well-positioned to support both, even amidst the current economic uncertainty.” Calvert Impact Capital has cumulatively raised more than $2 billion from nearly 20,000 investors through its signature product the Community Investment Note® (the “Note”), a retail fixed-income product. The Note is widely distributed across brokerage platforms and as John DesPrez III, CEO of Incapital, a leading fixed-income distributor remarked, “Strong Note sales serve as a clear indicator of impact investing’s move towards the mainstream. We are thrilled to see this growth, but not at all surprised based on the strength of the Calvert Impact Capital team.”
The COVID-19 crisis and movements to address inequality and promote racial equity have accelerated the interest in investing for impact through both public and private market options. Calvert Impact Capital’s recent investor survey found that 44% of all investors – and 72% of millennial investors – are more likely to invest for impact since the COVID-19 pandemic began. Investors’ top two areas of interest are Environmental Sustainability and Racial Equity.
With growing investor interest and strong portfolio partners, Calvert Impact Capital has deployed capital throughout 2020 in prudent, high-impact ways. “At a time when other lenders were pulling back, Calvert Impact Capital’s support enabled us to stay in the market and strive to meet the need for quality affordable housing, which is more acute than ever,” said Randy Parker, Managing Director and Chief Financial Officer of Preservation of Affordable Housing, Inc. (POAH). Looking ahead, Calvert Impact Capital has a robust pipeline to deploy in the fourth quarter to support critical sectors including affordable housing, small business finance, renewable energy, and microfinance.
In addition to growing its own portfolio, since March, Calvert Impact Capital has leveraged its syndication services to help community lenders provide affordable, flexible capital to the smallest small businesses suffering from the economic fallout of the COVID-19 crisis. The company serves as the lead arranger for the $100 million New York Forward Loan Fund and is currently working with partners to launch similar funds across the country. “An incredible group of public, private, and social sector organizations has come together to create scalable models to meet the enormous demand for access to credit. We are working closely with remarkable Community Development Financial Institutions (CDFIs) who lend to small businesses that are traditionally excluded from our financial system, including businesses in low-income communities, women-owned businesses, and businesses owned by Black, Indigenous, and People of Color,” noted Beth Bafford, Vice President of Strategy & Syndications, who is leading efforts to build the COVID-19 relief funds.
“Calvert Impact Capital’s work is anchored in the knowledge that we must think bigger, move faster, and work together if we hope to change our financial system to value people and planet over short-term profits,” said Jennifer Pryce, Calvert Impact Capital CEO. “We will continue to work with the urgency our shared challenges demand to get capital to communities that need it most.”