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Resources created and curated to support the growth of impact investing, for those new to the field and for experienced practitioners.

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ImpactAssets 50: A Global Landscape of Impact Investment Fund Managers
The ImpactAssets 50 (IA 50) is the first open-source, publicly published database of experienced private debt and equity impact investment fund managers.
http://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

Arborview Capital

Total Assets Under Management: $26 – 50MM
Asset Class: Private Equity
Geographic Focus:
Impact Investment Focus:
Clean Technology
Health and Wellness
Affordable Housing and Community Development
Fair Trade
Education and Charter Schools
Natural Resources and Conservation
Water and Sanitation
Media, Technology and Mobile
Sustainable Agriculture
Small and Medium Business Development
Microfinance/Low-Income Financial Services/Micro-insurance
Global Health

Firm Overview

Founded in 2008, Arborview Capital is an impact-focused investment firm that makes growth equity and venture capital investments in high growth, mission-oriented companies. For the past two decades, our partners have been teaming with exceptional management teams to build best-of-breed businesses in high growth industries. We've built a reputation as partners and trusted advisors to management teams looking for strategic, impact-focused growth capital that creates positive systemic change and top-tier returns to all stakeholders.
Firm Headquarters: US & Canada
Years of Operation: 5 – 10 years
Total Assets Under Management:
$26 – 50MM
Total Number of Investors: More than 25
% of Capital from Top 3 Investors: 25 – 50%
Investment Thesis:
Arborview's investment thesis is based on the fundamental belief that growth equity capital provides the best risk-adjusted returns for investors seeking to invest in three core sectors (energy efficiency, resource efficiency, and sustainability) where success can be measured not only by the investment returns but also by the positive social and environment impacts shared by a company's stakeholders. By focusing on established high-growth businesses, the firm can assist entrepreneurs in the execution of growth initiatives and hiring strategies while mitigating the downside risk of a more traditional early stage investment strategy.

Investment Example

Arborview's first investment was a $5.25 million equity investment in LRI Energy Solutions. Founded in 1992, LRI provides fully outsourced lighting and water efficiency solutions to the energy service company ("ESCO") industry and has managed over 500 projects including: the US Capitol, the Supreme Court, the National Park Service, etc. Since Arborview's investment, LRI revenues increased from $7 million in 2008 to over $50 million today with strong EBITDA growth each year. The Company's solutions reduce lighting and water usage by 10-30% and to date have saved over 3.9 billion gallons of water and 65 million kWatt hours of energy. The Company has tripled its workforce from 25 to 75 employees and implemented both profit sharing and an incentive option pool to encourage employee ownership. Arborview partially realized its investment in September 2016 resulting in a gross return of 6.1x invested capital and a 34% IRR with significant upside from an ongoing 8% ownership position.

Leadership and Team

Cumulative Leadership Experience in Investing:
More than 30 years
Cumulative Impact Experience of Top Three Firm Leaders:
20 – 30 years
Karl Khoury – Co-Founder and Partner More Info

Karl Khoury is a founder and co-heads the investment team and operations of the firm. Prior to Arborview, he had twelve years of experience with Columbia Capital, a sector-focused venture capital firm with over $2 billion under management. During that time, he invested in 13 companies with a primary focus on enterprise and communications software, security, and managed IT services. Prior to Columbia Capital, Karl worked at JP Morgan where he specialized in corporate finance and capital markets for technology and communications clients. Karl currently serves on the boards of directors of Drexel Metals, Rachio and Vital Farms. He previously served on the boards LRI and nine of the investments that he managed at Columbia Capital. He also serves on the Board of Trustees of the Levine Music, an independent music school based in Washington, DC. Karl received a BS in Finance from Lehigh University.

Joe Lipscomb – Co-Founder and Partner More Info

Joe is a founder of Arborview Capital, co-heads the investment team and co-manages the operations of the firm. Prior to co-founding Arborview Capital, he had nine years experience identifying, consummating and managing private equity investments, first as a managing director at The Carlyle Group and then with the Global Environment Fund. He has a long track record of working closely with high quality management teams to build successful, leading companies in high growth sectors. Prior to that, Joe had a nine year career at BT Alex Brown and First Boston, providing financing and advisory services to growth companies.

Brian Lee – Partner More Info

Brian has been a private equity investor for more than 20 years and works closely with many of Arborview Capital’s portfolio companies including Rachio and LRI Energy Solutions. Prior to Arborview, Brian worked at The Carlyle Group in their Aerospace, Defense & Government Services group and before that at First Reserve, the largest global private equity firm focused on energy. Brian began his career at BT Alex Brown and then Morgan Stanley where he structured and executed leveraged buyouts, mergers and acquisitions, IPOs and other transactions for private equity clients. Brian has served on the boards of directors or been an observer at several companies including Rachio, LRI Energy Solutions, New Commercial Capital, Vought Aircraft, Foundation Coal and Alpha Natural Resources. Brian received a BA in Political Economy from Williams College and is currently a co-head agent.

Roger Ballentine – Venture Partner More Info

Roger is a Venture Partner of Arborview Capital and provides the firm with a broad network of industry contacts and extensive industry and regulatory policy expertise. Roger is the founder and CEO of Green Strategies, Inc., a corporate consulting firm that assists clients with domestic and international public policy matters, marketing, and business development strategies in the areas of energy, environment and sustainability. Prior to Green Strategies, Mr. Ballentine served as the Chairman of the White House Climate Change Task Force and Deputy Assistant to the President for Environmental Initiatives under President Bill Clinton. Previously, he was a partner with Patton Boggs, LLP.

Percentage of Investment Professionals who are Women and/or Under-Represented Groups in Firm's Geographic Focus:
25% – 50%
Percentage of Board Members who are Women and/or Under-Represented Groups in Firm's Geographic Focus:
25% – 50%

Financial Performance

Target Financial Returns Relative to Benchmark:
Above Market Rates
Actual Performance Relative to Target Financial Returns in the Past Three Years:
In line with initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
100%
Target Impact Outcomes:
Addressing climate change and environmental issues
Alleviating poverty
Conserving land, ecosystems and natural resources
Creating jobs
Increasing access to education and improving educational outcomes
Increasing access to financial services
Increasing access to healthcare services and improving health
Increasing access to water and sanitation
Promoting arts and media
Providing housing
Value-added Services Offered:
Access to markets
Business and legal training
Financial literacy training
Technology training
Health services
Education services

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:
Aborview's mandate is to invest into high-growth, mission-oriented companies that make a positive social and environmental impact and generate best-in-class financial returns.  Our portfolio companies (and their missions) include: Shenandoah Growers (sustainable food production, water conservation, land conservation, health and wellness), Rachio (water conservation), Vital Farms (ethical and sustainable food production, humane treatment of animals), Drexel Metals (sustainable building materials, energy efficiency) and LRI Energy Solutions (energy and water efficiency). We will not pursue investments into companies that are not impact-focused.

Investments systematically include social and environmental sustainability practices in the due diligence process:
When evaluating a new investment opportunity, Arborview has an Impact Questionnairethat it uses to evaluate a company's intrafirm social/environmental sustainability practices.  Some of the items covered on this questionnaire include: mission statement with positive social/environmental impact, GIIRS rating, Impact Business Models rating, corporate governance and a board that consistently evaluates the company's positive impact, the use of KPI's to track impact performance, financial and impact performance shared with employees, impact performance shared with the public, employee ownership, employee compensation including a company-wide bonus plan, employee benefits including (healthcare, retirement plans, dental, disability, life insurance, maternity leave, paternity leave, skills-based training, etc.), diversity of employees, board and shareholders, % of employees and suppliers that reside in low-income communities, charitable giving practices, tracking and reporting GHG, energy and water consumption and savings, third party social or environmental certifications.

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes - on regular basis (annual or quarterly)
Third Party Validations:
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing
Industry Impact Metric Tools Used:
Impact Reporting and Investment Standards (IRIS)

Learn More

Key Contact Name: Karl Khoury
Phone: (301) 215-8324
Mailing Address:
5425 Wisconsin Ave, Suite 704, Chevy Chase, MD 20815

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Impact investments are investments made into organizations and funds that generate measurable social and environmental impact as well as financial returns.