Calvert Impact Capital
- Calvert Impact Capital is a non-profit impact investment firm. Currently $2.5 billion in AUM. They have lent over $2.5 billion to other funds and intermediaries. They do not make direct investments, but rather structured lending and private debt to impact organizations. They raise money from individual and institutional investors and use those funds to finance projects in non-traditional sectors like small businesses, banks that serve lower-wealth communities specifically, reducing carbon emissions for commercial buildings, and a special portfolio that aligns with SDG goals. The minimum investment is $20, so it is accessible to everyone to invest in their impact investment firm. They first look into the portfolio and market impact. They look into the investment purpose, the borrower strategy, the availability of financing in the market for the sector, and investor contribution first. After portfolio and market impact, they do research into the company’s community impact. The research includes the impact the organization will have, the depth and scale of the impact, impact risk, ESG factors, and who and where the impact is being made. They have a custom strategy to evaluate the individual loan, where they use a spider analysis to evaluate the expected impact on performance. Within the spider analysis, they have 4 benchmarks such as test borrower as the control for the analysis, sector, strategy, and financial benchmarks. They are a finance-first investment firm. They are finance first because when evaluating impact organizations, they first look into the portfolio and market impact. This framework researches the profitability of their lending strategy and then goes into the impact second. The sectors they target are small business financing, Microfinance, renewable energy, affordable housing, community development, education, health, gender equity, sustainable agriculture, and environmental sustainability. They have invested in 100+ countries, which include most of the regions and landscapes globally. You can invest online and by mail for individual investors. Institutional investors can invest in private debt lending transactions via Calvert Impact Capital or directly invest in their various funds. Calvert Impact also partners with various financial advisors.Personally, I would 100% invest with them. They have a proven track record of over 30+ years with a 100% repayment of principal and interest to all investors in the impact investment space.
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