IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
Enhanced Capital Group, LLC
Small/Medium Business Development
Demographic-based impact
Place-based impactFirm Overview
Enhanced Capital is a leading impact investment firm with over 20 years experience investing in small businesses, impact real estate, and climate finance. Recognizing the value access to capital plays in addressing the world’s most important social, environmental, and economic needs, Enhanced invests only in businesses and projects within our core impact themes: underserved communities, underrepresented populations, environmental sustainability, and economic impact. With a focus on generating returns for investors and simultaneously achieving maximum positive outcomes from our investments, Enhanced invests, with intent, to advance the UN Sustainable Development Goals. Enhanced Capital is a Registered Investment Adviser regulated by the U.S. Securities Exchange Commission, a Community Development Entity regulated by CDFI, division of the Dept. of Treasury, and manages a Small Business Investment Company, regulated by the Small Business Administration. Since inception, Enhanced Capital has raised over $3.2B in impact assets supporting hundreds of businesses and projects throughout the US.
Years of Operation: 10 years or more
% of Capital from Top 3 Investors: Less than 25%
Enhanced believes improving access to capital for historically underrepresented people and communities and promoting sustainable investment practices, results in positive economic impact for all stakeholders and contributes to the global initiative of advancing the UN SDGs by 2030.
Enhanced provides financing to small businesses and projects often overlooked by traditional sources of capital. By addressing investment gaps within the capital markets, Enhanced seeks to unlock deep impact outcomes across its four core impact themes: for businesses and projects located in underserved communities such as low-income and rural areas; for businesses and projects owned and operated by underrepresented populations like women, racial and ethnic minorities, and other historically disadvantaged people; to promote environmental sustainability and assist in the transition to a net zero economy; and to create positive economic impact outcomes for all common stakeholders including investors, communities, employees and partners. This focus on bettering outcomes for our target market is underpinned by rigorous quantitative and qualitative data collection and a bespoke Impact Measurement and Management process that integrates sustainability into our investment process. Enhanced is committed to continuously improving our impact methodologies in order to maximize impact outcomes.
Because the impact investment landscape is presently in state of flux as evolving standards and metrics are contemplated, we choose to answer this question with inclusivity vs. differentiation, with the ultimate goal of finding common ways to grow impact investing. Enhanced accomplishes this by, whenever possible, utilizing common frameworks, methodologies, and metrics best suited for our asset class: private equity/private debt with a focus in the US market. Enhanced follows the UNDP SDG Impact Framework and the SDG Impact Standards for PE to embed sustainability into our investment policies. We use common metrics from GIIN IRIS+, ILPA EDCI, and GRI when possible, to allow for benchmarking and transparency around our reporting. We produce an annual Community Impact Report with impact outcome disclosures, actively participate in impact working groups, and regularly speak at impact conferences.
Investment Example
Enhanced Capital has provided Vertical Harvest, LLC, a woman-owned hydroponic, vertical controlled environmental agriculture (CEA) company with multiple small business loans for its corporate operations in Jackson, WY, and has participated in the financing of a 52,000 sq foot vertical farm in Westbrook, ME through our partnership with Crossroads Impact Fund. Vertical Harvest energizes local food systems with its innovative CEA model to deliver healthier food in urban environments and create employment opportunities for underrepresented populations. They work with communities to develop underutilized space in the heart of cities and “grow up” on a fraction of the land required by traditional agriculture, while using 85% less water to deliver produce at its peak flavor and nutrition, year-round. They prioritize social impact and profitability by leveraging a mix of public and private partnerships and operating with a customized, inclusive employment model focused on individuals with physical and/or intellectual disabilities.
Leadership and Team
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Michael Korengold – President & CEO More Info
Michael serves as the President and Chief Executive Officer of Enhanced Capital Group LLC. Michael serves on the firm’s investment committees and Board of Directors. Prior to becoming president, Michael served as the company’s senior vice president and general counsel, where he handled the company’s various legal matters, including government relations and corporate compliance issues. Prior to joining Enhanced Capital, Michael practiced law for seven years in New Orleans and Minneapolis, with an emphasis on mergers & acquisitions and financing transactions. He clerked on the U.S. Court of Appeals for the Fifth Circuit. |
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Gingee Prince – Chief Impact Officer More Info
Gingee serves as Managing Director of Enhanced Capital’s $25 million Wyoming investment fund and as Chief Impact Officer for Enhanced Capital. Gingee oversees the objectives, metrics, analysis, and reporting of the firm’s social, environmental, and economic investment impact. Prior to these two positions at Enhanced, she was responsible for the development of public/private investment programs and business expansion for the firm. |
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Ed Rossier – Managing Director, Head of Climate Finance More Info
Ed joined Enhanced Capital in 2021 and is responsible for its Climate Finance credit and equity businesses. Previously, Ed was the Senior Vice President at U.S. Bank, where he led a team that closed $10 billion of investments, financing over 13,000 megawatts of solar, wind, bioenergy, and energy storage projects across the country. Prior to U.S. Bank, he served as the Director of Business Development at the multidisciplinary engineering firm Werner Sobek New York, where he was responsible for structural and façade engineering originations and the firm’s launch of its New York sustainable building technology group. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
100%
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All Enhanced Capital investment must fit within at least one of the Firm’s four core impact investment themes: Underserved Communities (rural or low-income census tract), Underrepresented Populations (women/POC/veteran/LGBTQIA-owned or operated), Environmental Sustainability or Economic Impact through Quality Job Creation/Retention (higher than national wages, upward mobility, benefits). In addition to meeting a core impact theme, the investment must also advance achieving at least one of the UN SDG’s Targets and/or Indicators. Targets and Indicators are determined prior to investment and tracked on an annual basis for the life of the investment.
Enhanced has established policies that promote sustainable investment practices throughout the investment process. This begins at the screening level where all investments are screened to fit within at least one of our four core impact pillars and at least one UN SDG. Post-screening and pre-investment, due diligence is conducted which includes a comprehensive intake form (available upon request) to establish base impact metrics for future analysis and an ESG survey which includes all ILPA EDCI metrics as well as additional data Enhanced has determined important to the longevity and sustainability of the business or project. This survey includes specific questions around their internal ESG policies as well as annual corporate emissions, governance policies, DEI policies, net zero pledges, etc. Additionally, impact data and updated ESG surveys are collected annually after investment and stored for year-over-year comparison purposes.
Impact Tracking and Monitoring
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201 St. Charles Avenue, Suite 3400, New Orleans, LA 70170 USA
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