IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
Kairos Investment
Management Company
Affordable Housing
Financial and Economic Inclusion
Natural Resources and ConservationFirm Overview
Kairos Investment Management Company is a real estate private equity firm founded in 2005 focused on a long-term orientation to value-based real estate investments in the lower middle market, often with a contrarian approach. We have the ability to make direct investments or provide capital to sponsors and borrowers through debt and equity positions. The flat organizational structure enables us to quickly evaluate projects and make investment decisions across our geographic markets. Our philosophy enables us to be both opportunistic and patient with our investments, management approach, and disposition strategies. As of June 30, 2024, the Kairos team has transacted on $4.3 billion of real estate, including nearly 25,000 multifamily units and over 21 million square feet of commercial property nationwide. We have offices in California, Colorado, Tennessee and New Jersey.
Years of Operation: 10 years or more
% of Capital from Top 3 Investors: Less than 25%
The Kairos impact strategy focuses on affordable housing investments across the United States that provide a predictable cash flow stream to investors. A key focus for Kairos is generating alpha, while supporting the environmental improvements and social programs for tenants to qualify as an impact investment.
Established in 2016, the Kairos impact strategy purchases, owns, and manages affordable housing investments that include low-income housing tax credits (LIHTC), manufactured housing, and retirement communities. This strategy delivers quality affordable housing while supporting social programs that improve quality of life and reduce the carbon footprint. The environmental improvements save water and energy through capital improvement upgrades at properties with outdated infrastructure. Kairos also promotes community through resident programs tailored to the needs of the residents that can include maintaining/improving employment, education, and credit. Kairos has experienced that an increase in the pride of a home corresponds with lower maintenance, a reduction in unit turnover costs, and improved credit scores as tenants pay rent more consistently.
Kairos prides itself on specializing in relationship-centric sourcing of opportunities and precision execution, while constantly challenging the team to innovate in all facets of the investment process. Kairos believes innovation is critical to continue to deliver the best possible results to our investors. The impact strategy is just one example of innovation, as Kairos has been investing the space well before impact investing was in vogue. Impact investing and integration of innovation are integral to our firm’s DNA, which has been critical to the evolution of our firm and will continue to remain important as technology evolves to support these critical elements of our business. Kairos impact investments are important examples of our obligation to residents in our properties as we maintain our fiduciary relationship with our investors. This ethos is woven into the fabric of our culture and we believe will continue to drive the firm into the future.
Investment Example
Redwood Park, a 232 unit property located in Eugene, Oregon, plans to invest over $100,000 to decrease water and energy usage. These retrofits include insulating domestic hot water piping, installing LED lighting in common areas, incorporating low-flow units into kitchen and bathroom faucet aerators, and substituting shower heads with water-efficient devices. The expected annual savings are more than $35,000 in energy and water costs, which equates to an estimated return on investment of 35.7%. Fifty-five social impact initiatives were provided in 2022, which attracted 183 residents to in-person events and engaged 1,578 others through online participation and educational outreach content. Residents received $9,000 worth of goods and services, encompassing Back-To-School Supplies, Warm Winter Clothing for School-Aged Children, Flu and Covid Vaccines, Food Assistance, and Holiday Gifts. Furthermore, 232 residents took advantage of the free rent reporting program, leading to a 28% boost in their overall credit scores.
Leadership and Team
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Carl Chang – Founder & Chief Executive Officer More Info
Carl Chang is the Chief Executive Officer and Founder of Kairos Investment Management Company, a privately owned real estate investment and asset management firm. Kairos focuses on value-based real estate investing, monetizing on market dislocations, and opportunities throughout the various economic cycles. Mr. Chang leads the expansion of Kairos’ investment business, which has acquired, developed, and managed real estate across the US worth over $4.1 billion in multiple asset classes with a focus on workforce and affordable (LIHTC) housing, market rate multifamily, as well as retail, office, and industrial. |
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Jonathan Needell – President & Chief Investment Officer More Info
Jonathan Needell is President and Chief Investment Officer of Kairos. Mr. Needell joined the Company’s predecessor in 2006 as its Chief Financial Officer and Chief Operating Officer. Mr. Needell directs the firm’s investment strategy and decisions, forms and fosters investor relationships, and is a voting member of the firm’s investment, credit, and risk committees. Since its founding, Kairos has targeted inefficiencies in commercial real estate markets by investing in public debt, private equity, and private debt on behalf of pension plans, foundations, endowments, corporations, sovereign wealth, registered investment advisors, and high net worth individuals and families. |
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Diana Yang – Head of Investor Solutions More Info
Diana Yang is the Head of Investor Solutions of Kairos Investment Management Company. Ms. Yang focuses on managing the firm’s strategic growth and capital formation across the firm’s various private equity, credit and impact strategies. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
50% – 74%
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The Impact Strategy only invests in assets providing affordable housing (or market-rate assets that are self-regulated by Kairos to provide at least 20% of units at a 25% discount to the average unit price, rented to tenants below specified AMI levels.) In addition, the Strategy seeks to invest in assets that are well-positioned to run social programs, and strives to reduce the carbon footprint of existing properties (compared to new LEED certified properties, the development of which is additive to the carbon footprint) by making environmental upgrades focused on water conservation, energy efficiency and waste reduction.
Our acquisition efforts target inefficient assets where we believe we can create value (financial, environmental, and social) by introducing more sustainable practices and systems. These features/ opportunities are considered throughout our standard underwriting process.
Impact Tracking and Monitoring
Learn More
18101 Von Karman Ave, Ste 1100, Irvine, CA 92612 USA
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