IMPACTASSETS 50™

An Annual Showcase of Impact Investment Fund Managers

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An Annual Showcase of Impact Investment Fund Managers

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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.
https://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

IA 50 2024 PROFILE

Shared Capital Cooperative

Total Assets Under Management: Less than $25M
Asset Class: Private Debt - Absolute Return / Notes, Private Equity
Primary UN Sustainable Development Goal: 8 – Decent Work & Economic Growth
Affordable Housing & Community Development
Microfinance, low-income financial services & micro-insurance
Job creation and workforce development

Firm Overview

Category: Private Debt - Financial Inclusion (Microfinance, SME Finance and/or CDFIs - Development Markets)

Shared Capital Cooperative is a national CDFI loan fund specialized in financing cooperatively owned businesses and housing. Shared Capital is a cooperative association that is democratically owned and governed by over 300 cooperatives. Shared Capital is committed to supporting cooperative development and building a just equitable and democratic economy.   

Firm Headquarters: US & Canada
Years of Operation: 10 years or more
Total Assets Under Management:
Less than $25M
Total Number of Investors: More than 25
% of Capital from Top 3 Investors: Less than 25%
Investment Thesis:

At Shared Capital, we believe that by supporting the formation and expansion of cooperatives in communities, we help communities build more just, inclusive, and equitable local economies.  

Investment Overview:

Shared Capital makes investments in cooperative businesses that advance racial equity, social and economic justice, and build community wealth. In 2022, 84% of our investments are to cooperatives owned by people of color, women, LGBTQIA, and low-income communities. In 2022, 31% of our investments were to Black, Indigenous, People of Color-owned cooperatives. People come together to organize and own cooperatives to address community needs, such as access to safe and affordable housing, the creation and retention of living wage jobs, and access to healthy foods. The broad-based ownership of cooperatives helps create opportunities for communities that are left out of mainstream markets. We bring our extensive expertise in cooperatives to fill critical gaps in capital access and leveraging other dollars wherever possible. Our unique democratic, borrower-led financing model supports accountability to the communities where we work. The fund is owned by cooperatives that borrow from and invest in the fund.  

Company Differentiator:

Shared Capital is a fund that is democratically owned and governed by its members and borrowers with a democratically elected board. With a 45 year track record of making more than 900 loans to cooperatives, Shared Capital is experienced and yet innovative. We provide truly cooperative capital that is flexible, patient and promotes, not undermines, the cooperative structure. In 2022, we gave back to cooperative member-borrowers a 2% rebate on interest paid in 2022 member patronage refund.  

Investment Example

In February 2023, Shared Capital made a $150,000 loan to the Washington Hmong Farmers Cooperative, a collective of fourteen Hmong vegetable and flower growers who have been selling their products at Pike Place Market in Seattle and the region's farmers markets since 1982. The co-op was created during the pandemic to increase access to new markets and buyers. The loan was needed to finance the purchase of a delivery truck, coolers, dryers, and other equipment that will be shared among the cooperative members that would be reimbursable through grants from the USDA and state department of agriculture. 

Leadership and Team

Cumulative Leadership Experience in Impact Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
30 years or more
Christina Jennings – Executive Director More Info

Jennings' joined Shared Capital in 2008 where she provides strategic leadership, oversees lending programs, and leads capitalization and fundraising efforts. Jennings has worked for nearly twenty-five years in community development finance in the US and internationally. Jennings' background includes managing a US city-wide microloan fund, delivering technical assistance and training to immigrant-led start-ups; and managing international funds that invested in local microfinance organizations in Latin America. She has also launched and managed several small businesses and social ventures.

Mark Downey – Director Of Finance And Operations More Info

Working hard to improve our shared experience. I'm an experienced social sector leader and entrepreneur with history and expertise in financial management, business administration, and leadership development; quietly doing the things behind the scenes that make businesses work. My commitment to the common good and my love for building meaningful relationships drive my work.

Terence Courtney – Board President More Info

Cooperative Development, Land Retention & Advocacy

Percentage of Investment Professionals who identify as women:
50% or more
Percentage of Investment Professionals who identify as people of color:*
50% or more
Percentage of Senior Management Team who identify as women:
50% or more
Percentage of Senior Management Team who identify as people of color:*
25% to less than 50%
*People of color include: Black, Latinx, Asian, Native American/Alaskan Native, Pacific Islander, Middle Easterm and multi-racial Americans

Financial Performance

Target Financial Returns Relative to Benchmark:
Near-market Rates
Actual Performance of Impact Products/Funds 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%
Primary Impact Outcomes:
Increasing access to financial services
Secondary Impact Outcomes:
Addressing climate change and environmental issues
Alleviating poverty
Conserving land, oceans, ecosystems and natural resources
Creating jobs
Providing housing
Addressing racial inequities
Addressing gender inequities
Value-added Services Offered:
Business and legal training
Financial literacy training
Education services

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:

We specifically target and prioritize financing for cooperative businesses and housing that are organized by people of color, women, LGBTQIA and economically dis-invested communities. Through targeted outreach and partnerships, we work to source deals that are led and majority owned by these marginalized groups. Our underwriting policies and practice prioritize evaluating and financing them and our products have been designed specifically to meet their unique needs.      

Investments systematically include social and environmental sustainability practices in the due diligence process:

During our loan application, due diligence, and investment processes, Shared Capital gathers and requests information from borrowers regarding internal practices and policies in order to understand their social, economic practices and policies. We evaluate the positive social, community, economic, and environmental benefits that the business creates and supports. This includes information about the demographic profile of the board and staff, employment practices, governance practices and policies. We also invite voluntary reporting on environmental sustainability policies and practices. 

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Impact Verified by an Independent Third-Party:
No
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to the public
Third Party Validations:
Member of Impact Capital Managers
Impact Frontiers Cohort Participant
Implement recommendations from Task Force on Climate Related-Financial Disclosure
Net Zero Assets Managers Initiative
Utilizes standardized impact metrics (e.g. IRIS+, GIIRS, etc.)
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing

Learn More

Key Contact Name: Mike Seo
Phone: 612-767-2103
Mailing Address:

2388 University Avenue W, Ste 300, St. Paul, MN 55114 USA

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