IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
Advantage Capital
Affordable Housing
Community Development
EnergyFirm Overview
Advantage Capital was founded in 1992 with a dual mission: to bring businesses, technologies and decent work to communities that have historically lacked access to capital, while also generating competitive returns for our investors. From the start, Advantage has been an innovator in blended finance and raising private institutional capital in partnership with economic development organizations. Our investments span three distinct but complementary strategies, driving local economic development, and social and environmental impacts: growing small and emerging business; financing affordable housing; and expanding renewable energy. Thematically, the intended impacts of our investments or projects target underserved communities; underrepresented populations; housing affordability and stability, health and wellness, environmental sustainability, and economic and fiscal impact. In total, Advantage has invested over $4.1B in more than 900 companies, $370MM in 112 affordable housing developments, and $635MM supporting 100+ solar projects across the U.S.
Years of Operation: 10 years or more
% of Capital from Top 3 Investors: Less than 25%
Advantage Capital drives sustainable economic growth by investing in underserved communities and businesses through innovative public-private partnerships and stakeholder engagement, generating financial returns while fostering meaningful social and environmental impact.
Advantage investments in small and emerging businesses, affordable housing developments, and renewable energy projects that lack access to catalytic, gap or conventional financing, particularly in areas consider low-income, highly distressed, or a with a high degree of rurality. Our theory of change and intended impacts require that our capital first establishes community support for the project and then creates additionality by affording a business the opportunity to seize growth, or maintain operations without downsizing or relocating out of the community but-for our investment. By partnering with stakeholders including government agencies, impact-driven investors or service providers, and local institutions, Advantage creates a powerful ecosystem that target quality and accessible job creation, and healthier more resilient communities. Providing affordableProviding affordable and patient capital in these markets, we can generate meaningful financial returns for our investors while simultaneously creating lasting positive social and environmental impacts.
We set ourselves apart by being an early innovator in raising private capital to invest in businesses in underserved communities. Unlike many traditional investment firms, we prioritize regions and sectors often overlooked by conventional capital markets, including rural areas, minority-owned businesses, and affordable housing projects. For over 30 years, we’ve worked closely with federal and state economic development agencies and built strong relationships with banking, insurance, and corporate investors. We have grown to over 200 employees across 12 states, all driven by a commitment to making a real difference in the communities we invest in. This history of working with public-private partnerships, engaging with local stakeholders, and our hands-on, impact-focused approach positions us as a leader in the field.
Investment Example
North End Teleservices (NET) is a 100% minority-owned contact center in North Omaha, NE. The company’s sole owner is Carmen Tapio, who purchased NET in 2018 from the \ Omaha Economic Development Corporation (OEDC). The OEDC founded NET in 2015 with the mission of creating jobs and changing lives in a community experiencing high levels of poverty and unemployment. The company holds a variety of certifications, including HUBZone business status and it is the largest African American-owned business in Nebraska. Since taking over ownership, Carmen has grown the business from $1.3mm to more than $10mm of annual revenue, with plans to exceed $50mm in 2024. Similarly, NET grew from 40 to nearly 400 employees, and plans to double headcount to 800. NET provides a suite of benefits that include transportation, healthcare, 401k, PTO, first-time homeownership and college tuition assistance. Additionally, NET targets hires through local workforce and offender re-entry organizations.
Leadership and Team
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Scott Murphy – Chief Investment Officer More Info
Scott Murphy rejoined Advantage Capital as a managing director and the chief investment officer after serving in the United States Congress representing New York from 2009 to 2011. He previously worked at Advantage Capital from 2001 to 2009, overseeing the firm's $88 million New York portfolio. As chief investment officer, Scott oversees the firm’s entire portfolio. Scott is an experienced venture capitalist and highly successful entrepreneur with a robust background in public service. Prior to his tenure at Advantage Capital, he co-founded three high-tech companies, including a game company that brought fantasy football and baseball to the Internet. |
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Sandra M. Moore – Chief Impact Officer More Info
Sandra M. Moore is managing director and chief impact officer at Advantage Capital, a growth equity firm founded in 1992 with over $3.6 billion AUM. The firm focuses on high growth and high wage business investing in communities where access to investment capital has historically been hard to find. Sandra is a member of the Advantage Capital investment committee and a direct advisor to the diligence and structuring teams. Sandra is also a member of the Advantage Capital fundraising team, which has brought in $225 million in capital during her four–year tenure. She has built the Advantage Capital Impact team, which creates data-driven initiatives to track and expedite portfolio growth, leads the communications and branding team and serves as the external-facing representative for Advantage Capital. |
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Ryan Brennan – Managing Director More Info
Ryan Brennan is a Managing Director at Advantage Capital. Mr. Brennan leads the firm’s efforts to foster access to capital and economic development in underserved communities. He is a leader on the firm's fundraising team and spearheads initiatives to strengthen and develop internal talent and assets. Ryan was most recently the Chief Operating Officer of the United States International Development Finance Corporation (DFC), the development finance arm of the U.S. government. While at DFC, he drove the creation and adoption of the Impact Quotient (IQ), an innovative method of measuring and improving impact in projects around the world. Ryan was a member of the DFC Investment Committee and led business development across the Western Hemisphere that facilitated billions in direct investment to Central America’s Northern Triangle. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
100%
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Yes, Advantage Capital’s deal sourcing and due diligence processes target companies where impact is central. While job creation in low-income communities remains a core metric, we take a more comprehensive approach by assessing community support, understanding the broader needs of the area, and creating a detailed community profile to determine the most effective use of our capital. We also focus on addressing industry and occupation segregation by investing in businesses that bring greater diversity to local job profiles, fostering a more heterogeneous workforce. In addition, we evaluate environmental benefits, job quality (e.g., good wages and benefits), and job accessibility for underserved populations, ensuring that our investments drive both social and environmental impact.
Yes, Advantage Capital includes an assessment of companies' internal social and environmental sustainability practices in our deal sourcing and due diligence. We evaluate factors such as employee diversity, equitable hiring practices, workplace inclusivity, and fair wages, as well as environmental initiatives like recycling, energy efficiency, reducing carbon emissions, and sustainable sourcing of materials. We also consider whether companies provide employee benefits such as healthcare, paid time off, or opportunities for professional development. This thorough assessment helps ensure that the businesses we invest in are committed to social and environmental responsibility, aligning with our goal of generating positive, measurable impact through our investments.
Impact Tracking and Monitoring
Learn More
7733 Forsyth Blvd, Suite 1400, St. Louis, MO 63105, United States
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