IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
MSquared
Affordable Housing
Diversity, Equity and Inclusion
Place-based ImpactFirm Overview
MSquared is a women-owned and -led, impact real estate platform focused on developing and investing in inclusive, sustainable mixed-income projects that drive competitive returns and create meaningful social impact. MSquared manages a series of funds designed to tackle the nation’s housing crisis with a new strategy – one that focuses on the development of new housing that adds much needed supply to the market, and one that combines market-rate with affordable units, rather than the traditional approach that segregates households on the basis of income. To deepen the impact of our capital, we seek opportunities to invest with women- and minority-led development firms and target projects in transit-oriented locations, working to incorporate energy-efficient design. As of September 2024, we have raised over $225 million of capital and have invested in 14 projects that will deliver more than 4,500 mixed-income housing units in cities across the country.
Years of Operation: 3 – 4 years
% of Capital from Top 3 Investors: 25% – 49%
MSquared invests in mixed-income, mixed-use projects in growing metro areas, working with partners to develop housing affordable to households at a range of income levels, while incorporating sustainable design principles and advancing gender and racial equity by targeting capital to women and minority-led development teams.
MSquared invests in ground-up, mixed-income, and mixed-use development projects that drive competitive returns, respond to the nationwide affordability crisis, and promote a holistic approach to a livable city: one that is affordable, sustainable, and inclusive. MSquared partners with developers to build mixed- income housing that provides market-rate units alongside affordable units, mitigating absorption and financing risk, and fostering a more equitable approach to housing development than the traditional approach which segregated households on the basis of income. Projects with commercial space work to include local small businesses and community facilities, making essential goods and services accessible to tenants, strengthening neighborhood infrastructure, and enhancing project revenue streams. MSquared also promotes sustainability by investing in transit-oriented locations and working to maximize density and incorporate energy-efficient building systems. Finally, MSquared seeks to advance gender and racial equity, by targeting capital to women and minority development teams.
Adding units: Typical Affordable housing private equity vehicles are focused on acquiring existing affordable or workforce units that do not increase supply and may not be required to restrict rents. MSquared invests in ground up or adaptive reuse mixed-income development projects that increase supply and restrict affordability for an extended period of time. Mixed-Income: Vehicles often invest in either “affordable” or market-rate projects. MSquared invests in mixed-income projects that combine affordable with market-rate units, ensuring households at a range of income levels have access to the same community resources and eliminating the stigma of “affordable” housing. Team: As one of the few women-owned and -led real estate investment managers, MSquared was created with impact at its core. Led by nationally recognized affordable housing expert, Alicia Glen, the MSquared team has extensive experience structuring and executing complex, transformative developments, positioning the firm to achieve competitive financial returns and meaningful social impact.
Investment Example
MSquared invested in the second phase of the master redevelopment of a former General Electric campus in Fort Wayne, IN. The transit-oriented project is a public-private partnership with the City of Fort Wayne, Allen County, and the State of Indiana. It will deliver 296 “all-electric” units of mixed-income housing as well as 33,000 square feet of commercial space filled with community-serving resources and amenities, including an early childhood learning center, a fitness/wellness center, and restaurant space. The housing will be affordable to households at a range of income levels, with 30% of units affordable to families earning between 30 and 80% of AMI and 70% market-rate. Some units will also be set-aside to serve individuals with intellectual or developmental disabilities and individuals at least 55 years old. The project is emblematic of the MSquared strategy: it will create Affordable Housing for a variety of households while embracing sustainable design principles.
Leadership and Team
 |
Alicia Glen – Founder and Managing Principal More Info
Alicia Glen is the former New York City Deputy Mayor and a nationally recognized expert in urban development, infrastructure finance, job creation, and housing policy. As Deputy Mayor from 2014 to 2019, Alicia was the architect of “Housing New York” – the largest housing plan in the nation – and developed and financed over 125,000 affordable homes, shattering all previous records. Prior to serving as Deputy Mayor, Alicia was Head of the Urban Investment Group (UIG) at Goldman Sachs and co-led the firm’s 10,000 Small Businesses initiative. Under her leadership, UIG catalyzed more than $5 billion of mixed-use development in cities across the country through equity, debt, and tax investment vehicles. |
 |
Carolee Fink – Principal More Info
Carolee Fink is a Principal at MSquared, where she oversees company operations and the Development practice, and sources deals across the country for the company’s investment management platform. She is also a member of the Investment Committee. Prior to MSquared, Carolee had a long tenure in New York City government where she served in senior economic development roles in both the Bloomberg and de Blasio Administrations. She successfully led several major projects including the development of Brooklyn Bridge Park, Downtown Brooklyn Cultural District, NYU Applied Sciences Campus and the Domino Sugar Refinery redevelopment. |
 |
Sara Myerson – Managing Director, Acquisitions More Info
Sara is the Managing Director of Investments, where she oversees the sourcing and execution of investment opportunities for funds managed by MSquared. She brings over 15 years of finance, design, development and public-private partnership experience with a focus on sustainable and resilient development in emerging and transforming urban markets. Most recently, she was Vice President at Suffolk Capital, a real estate investment vehicle affiliated with Suffolk Construction. |
Financial Performance
Impact Performance
|
Percentage of Total Assets Under
Management that are Impact Investments: |
100%
|
MSquared only works with partners who are including affordable housing units in their projects, making social impact integral to the product they are offering. In addition, MSquared aims to target capital to M/WBE developers, which helps to break down the gender and racial barriers prevalent in the real estate industry.
Diversity and sustainability are two of the core components of MSquared's impact investing strategy. As such, due diligence with possible partners includes evaluating their management and ownership teams to determine the level of women and minority participation. Similarly, MSquared reviews how and whether prospective partners have incorporated green building measures into their prior developments and what plans they have to do so on the investment opportunity being evaluated.
Impact Tracking and Monitoring
Learn More
40 Fulton Street, Suite 1404, New York, NY 10038 USA
Apply for the IA 50 2022
The application period to become an ImpactAssets 50 2022 Fund Manager will open in September 2021!
To stay informed on the application process, sign up here.