IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
Lafayette Square Holding
Company, LLC
Climate Change
Diversity, Equity and Inclusion
Place-based ImpactFirm Overview
Lafayette Square invests in overlooked places and underserved markets. We invest across asset classes and seek to provide robust risk-adjusted returns to investors while supporting the people and communities we invest in. Our approach creates measurable outcomes for people and communities. When we invest, we proactively seek to also facilitate wraparound services. This is how we define our Impact. Our goal is to improve job quality, increase benefits adoption, improve financial wellbeing, and boost employee retention across all our portfolio companies and partners. We believe improving the lives of the employees, particularly low-to-moderate-income workers, will strengthen the companies they work for and help middle-market businesses grow. By increasing access to economic opportunity, we can create a strong workforce and a more inclusive American economy. Lafayette Square was founded by entrepreneurs and credit professionals that have invested more than $8.6 billion of capital across a variety of industries.
Years of Operation: Less than 3 years
% of Capital from Top 3 Investors: 50% – 99%
Lafayette Square aims to create investment opportunities in overlooked places and underserved markets.
Lafayette Square's credit division provides senior secured loans and other flexible capital solutions to middle market businesses across the U.S. We have a long-term, partnership-based approach. Lafayette works with entrepreneurs and management teams to provide resources and capital to help businesses grow. Lafayette takes a non-dilutive approach to investing by keeping ownership and control in the hands of founders and management teams. Beyond economic support, Lafayette Square’s private credit strategy incorporates Worker Solutions, an internally developed platform that uses data to identify employee challenges and offer customized benefits and services to measurably improve the retention, productivity and well-being of employees who work within the companies being financed. Lafayette's joint venture with Invenergy, Reactivate, is a community solar energy platform supporting renewable energy development in local communities. We seek to create positive social and environmental impact by collaborating with local partners to deliver renewable energy benefits to underserved people and places.
Place-based: We are national, with a network of local originators, and focused on underserved communities. We target over half of our investments to reach low-and-moderate-income people or places. Workers Solutions: Alongside our capital, we offer solutions for portfolio company employees focused on financial well-being, education and training, and health, particularly targeted to the needs of low-income workers. By improving the job quality and lives of their employees, we believe companies can profit from a more engaged and productive workforce. Purpose-Built Technology: Technology is core to our business model. We constantly strive to source or develop functionality that accelerates our ability to achieve our goals and scale.
Investment Example
In 2021, Lafayette Square made an investment in a solar energy company to support its expansion and make clean energy accessible to thousands more customers. Headquartered in New Orleans, LA, the company is the nation's leading residential solar, energy efficiency, and energy education provider for low-to-moderate income families. The company has more than 22,000 resident customers, over 520 direct employees, and also supports more than 150 employees through its contractors across six states. The company’s unique services and products makes solar energy affordable to homeowners of all income levels, and offers individuals, families, and businesses the opportunity to achieve greater fiscal autonomy and energy independence by lowering utility bills. Historically, residential solar energy platforms have focused on prime credit customers with high FICO scores in order to determine installation eligibility. Unlike competitors, there are no FICO score cut-offs for the company’s customers.
Leadership and Team
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Damien Dwin – Founder and CEO More Info
Damien Dwin currently serves as the CEO of Lafayette Square. Previously, Damien served as Co-Founder and Co-CEO of Brightwood Capital from its founding in 2010 to October 2020. Damien began his career as a trader with Goldman Sachs, earning the Michael P. Mortara Award for Innovation. He further developed his investment expertise at Credit Suisse, where he was the Co-Founder and Head of North American Special Opportunities until 2010. Damien also served on the Vice President Selection Committee and led the Fixed Income Division Credit Training Program. Damien currently serves as Chair of the Board of Trustees for Vera Institute of Justice. He also serves on non-profit boards including Children’s Hospital of Philadelphia, Studio Museum in Harlem, National Trust for Historic Preservation, Woodberry Forest School, and Boys’ Club of New York. Damien received a B.S./B.A. from Georgetown University where he later served two terms on the Board of Regents. |
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Phil Daniele – Chief Risk Officer More Info
Phil Daniele is the Chief Risk Officer at Lafayette Square. Phil is responsible for creating and enforcing an integrated risk framework for evaluating and monitoring all Lafayette Square fund investments. With over 37 years of experience, Phil was the former Chief Risk Officer at Brightwood Capital and served on Brightwood’s Executive and Valuation Committees. Prior to Brightwood, he was the Chief Credit Officer for the Americas at Credit Suisse. He was responsible for approving all credit extensions in the Americas portfolio including corporates, financial institutions, hedge funds and private clients. Previously, Phil served as Head of Corporate Credit Americas, which included the Credit Suisse Leveraged Finance business. He began his career at CIT Factoring in 1984. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
75% – 99%
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Lafayette Square's credit strategy is targeting deployment of at least 51% of the investment capital to either (a) businesses in underserved areas or (b) businesses that are significant employers of low-to-moderate income individuals. Reactivate pursues initiatives that deliver solar energy solutions to underserved areas in order to unlock economic and social opportunity for local communities.
Lafayette Square has integrated environmental, social, and governance risk management into the investment process. We have a set of ESG questions that are asked during the due diligence process to ensure alignment with Lafayette Square values. We have a formal exclusion policy and a screening list for our underlying investees. We avoid investing in companies that we believe may have a negative impact on local communities. As part of our impact-driven approach, we typically do not expect to invest in the following: 1) Companies whose practices or products cause demonstrable environmental or social harm 2) Companies that do not comply with industry rules, regulations, and/or best practices for business conduct 3) Companies that violate human rights 4) Companies that have core business activities involving: the production of and/or trade in alcohol; tobacco; weapons & firearms; gambling & casinos; exploration and production of high carbon-intensive fossil fuels; and private prisons
Impact Tracking and Monitoring
Learn More
1801 Pennsylvania Avenue NW, Washington, DC 20006
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