IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
Kachuwa Investment
Cooperative PBC
Clean Technology, Alternative Energy & Climate Change
Diversity, Equity and InclusionFirm Overview
Kachuwa Impact Fund is an investment cooperative and public benefit corporation focused on owning and operating “impact real estate” and investing in privately held “impact companies.” As a cooperative, Kachuwa is democratically owned and controlled by its members on a one-vote-per-person basis. By design, ~60% of Kachuwa’s assets are real estate and ~40% of its assets are private debt and equity investments. All of Kachuwa’s assets must be aligned with one or more of Kachuwa’s nine “impact themes.” Kachuwa defines “impact real estate” as having a positive impact on society and the environment via: how it is used; how it is designed/built/renovated; where it is located; and/or who it benefits. Similarly, Kachuwa defines an “impact company” as one that exists to generate both financial returns AND a positive impact on society and the environment via: what it does; how it operates; where it operates; and/or who it benefits.
Years of Operation: 10 years or more
% of Capital from Top 3 Investors: 50% – 99%
Our economy, society, and environment would benefit greatly from a larger number of: (a) private impact companies that have access to patient, non-controlling capital that maximizes their autonomy and ability to pursue their missions; and (b) investors with diversified investment portfolios that include private impact investments.
Most investors are non-accredited and perceive their investment options to be primarily limited to Wall Street. However, the greatest positive impact tends to be generated in private, not public, markets. If given the opportunity, more people would choose to invest a portion of their savings in private, impact investment opportunities that are better aligned with their own values. Furthermore, most impact entrepreneurs perceive their financing options to be limited to traditional investment sources that typically require that entrepreneurs: (a) give up full or partial control of their companies; and (b) operate their companies differently than they otherwise would (e.g. pursue more aggressive growth and/or profit at the expense of other stakeholders) in order to prepare their companies for an exit in 5-7 years. If more sources of mission-aligned, non-controlling, and long-term investment capital were available, more entrepreneurs would start, convert to, avoid exiting, or continue to operate purpose-driven impact companies.
Kachuwa is one of the only investment cooperatives in the USA. In contrast to traditional funds: (1) Kachuwa is an open-ended, evergreen fund into which members can invest via annual stock offerings; (2) each member has one vote, regardless of investment size; (3) Kachuwa has fixed-price stock that eliminates the need for highly speculative portfolio valuations to determine NAV for incoming and exiting investors; (4) members don’t have to pay third-party management fees or carried interest – they instead share in the cooperative’s operating expenses; (5) Kachuwa distributes its net income to members via annual “patronage dividends” in accordance with traditional cooperative principles; (6) Kachuwa aims for a more diverse portfolio with private debt, equity, AND real estate assets; and (7) Kachuwa is welcoming to non-accredited investors who can participate in its offerings and receive 1099s instead of relatively complex K-1s (because Kachuwa is a cooperative and not a partnership).
Investment Example
Kachuwa provided 100% of the capital to purchase a commercial building to help Upslope Brewing Company, a certified B-Corp craft brewery, to “gain control of its real estate destiny.” Upslope was originally enticed into the building by its former landlord, who offered low rent and a large renovation budget; however, after the original lease expired, the landlord increased rent significantly. Unfortunately, Upslope was unable to relocate elsewhere without significantly disrupting its business operations, and Upslope lacked sufficient capital to purchase the property on their own. After being approached by Upslope for assistance, Kachuwa purchased the property and offered Upslope below-market rent, long-term stability, and a shared ownership opportunity in the building without any capital requirement from Upslope. In return, Upslope agreed to co-manage the property and to pursue LEED certification via multiple renovations that include a solar PV system, EV chargers, LED lighting, and other energy and water efficiency improvements.
Leadership and Team
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Blake Jones – President More Info
In addition to founding Kachuwa in 2005, Blake also co-founded four other cooperative enterprises: (1) Namaste Solar, an employee-owned cooperative; (2) Clean Energy Credit Union, a federally chartered credit union and a solely web-based financial services cooperative; (3) Amicus Solar Cooperative, a purchasing cooperative; and (4) Amicus O&M Cooperative, a resource-sharing cooperative. He is a 2010 Ernst & Young “Entrepreneur of the Year” award recipient and has a BE in Civil Engineering from Vanderbilt University. |
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Marilyn Waite – Vice President More Info
Marilyn currently leads the climate and clean energy finance portfolio at the Hewlett Foundation. She has worked across four continents in renewable and nuclear energy, startups, and venture capital and investment. Author of Sustainability at Work: Careers that make a difference, Marilyn is editor-at-large at GreenBiz for green economy ventures. She previously led the energy practice at Village Capital, modeled and forecasted energy solutions to climate change as a senior research fellow at Project Drawdown, and managed innovation projects at AREVA (now Orano). Marilyn holds a Master’s Degree with distinction in Engineering for Sustainable Development from the University of Cambridge and a Bachelor’s of Science Degree in Civil and Environmental Engineering, magna cum laude, from Princeton University. |
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Alicia Robb – Board Director More Info
Alicia is the Founder and CEO of Next Wave Impact and a Managing Partner of two early-stage venture funds. She was previously a Senior Fellow with the Kauffman Foundation for more than a decade. Alicia received her M.S. and Ph.D. in Economics from the University of North Carolina at Chapel Hill. She previously worked as an economist with the Federal Reserve Board of Governors and the Office of Economic Research in the Small Business Administration (SBA). |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
100%
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We won't invest unless there's positive impact that specifically aligns with one or more of our cooperative's stated impact themes, and we only invest in "impact companies" which we define as creating positive impact via: (1) what it does (e.g. its products and services); (2) how it operates (e.g. its business practices and corporate governance); (3) who it benefits (e.g. its owners, employees, customers, suppliers, and other stakeholders); and/or (4) where it operates (e.g. its locality and/or the communities it serves).
Similar to our response to the previous question, we only invest in "impact companies" which we define as creating positive impact via: (1) what it does (e.g. its products and services); (2) how it operates (e.g. its business practices and corporate governance); (3) who it benefits (e.g. its owners, employees, customers, suppliers, and other stakeholders); and/or (4) where it operates (e.g. its locality and/or the communities it serves). So, considering this is an intrinsic part of our sourcing, screening, and due diligence.
Impact Tracking and Monitoring
Learn More
4150 17th Street, Boulder, CO 80304, USA
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