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Strategies

IMPACT’s investment platform provides purpose-driven investments in scale, emphasizing stable income, diversification, and principal preservation. With a resilient 20-year track record, our strategies have performed across multiple market cycles and leveraging our expertise, we can provide custom solutions to meet investors’ impact and investment objectives.

Objective: IMPACT seeks to provide investors opportunities in permanent mortgages backed by affordable multifamily rental housing properties, providing investors current income and stable cash flows with attractive long-term yields relative to underlying credit risk.

Investment Types: Privately placed taxable and tax-exempt mortgage loans.

Impact Focus: Creation or preservation of affordable multifamily rental housing units financed in conjunction with federal, state and local subsidies such as the Low Income Housing Tax Credit program serving families earning less than 60% of the area median income.

Description: Long Term Mortgage Investments are long-term mortgages backed by affordable housing properties. These first lien mortgages have historically produced a spread over U.S. Treasuries that exceeds conventional CMBS investments and U.S. corporate bonds of similar quality. Regardless of market cycle, there is a strong demand for affordable housing. This consistent demand generates a low correlation for affordable housing loans vs other fixed income investments.

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Objective: IMPACT seeks to provide investors stable income through investments in short-term mortgage loans, secured by first lien positions in affordable multifamily rental housing properties.

Investment Types: Privately placed taxable mortgage loans.

Impact Focus: Preservation of affordable multifamily rental housing units financed in conjunction with take-out financing provided by HUD/FHA, Fannie Mae, Freddie Mac or similar agency mortgage programs, and serving families earning less than 100% of the area median income.

Description: Short term affordable housing loans can provide competitive yields through investments in mortgage loans that finance the preservation of affordable housing. These loans have terms between 6 and 24 months and are secured by first lien positions in affordable multifamily properties.

The borrowers include owners and developers who are in the process of obtaining permanent government financing and renewing the property's affordability restrictions. By 2024, affordability restrictions on nearly 300,000 federally-assisted homes are set to expire.

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Objective: IMPACT seeks to provide investors stable and low volatility income, safety of principal, and maximize total return in investments through publicly traded fixed income investments issued by state or local government agencies that qualify under IMPACT’s Environmental, Social, and Governance rating criteria.

Investment Types: Publicly traded taxable and tax-exempt municipal securities meeting IMPACT’s Environmental, Social and Governance rating criteria.

Impact Focus: Financing to support positive impact by sector:

Education

  • Focus on low socioeconomic districts and underserved communities
  • Success rates and program accessibility

Water/Utility

  • Wastewater management, sourcing and distribution

Healthcare

  • Accessibility to underserved communities
  • Focus on high-quality treatment and social programs

Affordable Housing

  • Creation and development of affordable housing

Mass Transit

  • Net emissions and effect on local air quality
  • Ridership costs and accessibility

Economic and Community Development

  • Impact of projects focusing on at-risk populations

Description: The strategy seeks to find investments with strong fundamentals, targeted duration to match long-term liabilities, with attractive long-term risk-adjusted yields while providing an efficient entry into impact investing.

IMPACT understands that institutional investors not only need investments at scale, they need assets that match their specific liabilities and tax considerations. Municipal bond issuances from state and government agencies can provide impact across multiple sectors including education, water, healthcare, affordable housing, transportation and economic/community development. IMPACT examines the universe of issuances to find the best investment opportunities across fundamental and impact criteria.

Objective: IMPACT seeks to provide investors opportunities in agency and private commercial mortgage backed securities collateralized with mortgages on affordable multifamily rental housing properties that provide investors current income and stable cash flows with attractive long-term yields relative to underlying credit risk.

Investment Types: Agency and Private commercial mortgage backed securities.

Impact Focus: Creation or preservation of affordable multifamily rental housing units financed in conjunction with federal, state and local subsidies such as the Low Income Housing Tax Credit program serving families earning less than 60% of the area median income.

Description: Over the last 20 years, IMPACT has built expertise investing directly in affordable housing debt and creating efficient exits for its investors through securitizations. IMPACT has been innovative in this marketplace and was the first to:

  • Use the Freddie Mac Q Series to securitize affordable housing mortgages
  • Swap affordable housing mortgages for Freddie Mac issued private participation certificates
  • Structure social bonds issued by Freddie Mac, backed by affordable housing mortgages originated by IMPACT

Securitizations in affordable housing mortgages are not only an efficient strategy to exit long term loans but they can also provide liquid, diversified fixed income exposure to the affordable housing space.

OVER

$1B

IN SECURITIZATIONS BACKED BY AFFORDABLE HOUSING DEBT

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