Anchor investors Microsoft, Truist tap firms to invest in MDI
and CDFI banks
Elizabeth Park Capital Management (Elizabeth Park) and Calvert
Impact announced they are teaming up on an investment fund to
invest in mission-driven U.S. banks. The Mission Driven Bank Fund
(the Fund) will be established to support Minority Depository
Institutions (MDI) and Community Development Financial Institution
(CDFI) banks through direct investment, market development and
other technical support services. The Fund seeks to improve bank
sustainability, promote an equitable economy, and address chronic
racial gaps in access to financial services.
The Fund will focus on the approximately 300 mission-driven
banks across the country that are essential in expanding access to
credit in traditionally unbanked and rural communities and
communities of color. MDI and CDFI banks drive access to wealth and
income-building opportunities, such as owning a home, expanding a
small business, or buying land, for people and families that have
otherwise been underserved by the financial system.
The Fund’s anchor investors, Microsoft and Truist, selected the
two firms in a competitive process. The lead firms have partnered
with subadvisors Strategic Value Bank Partners and West Potomac
Capital LLC, who have significant experience in financial services
investing in both public and private markets, including investing
in, and serving on boards of, MDI and CDFI banks. All four firms
expect to serve as expert resources to portfolio companies,
providing operational and technical assistance to address financial
and non-financial barriers to growth.
Microsoft director of Impact Investments, Joel Combs, who was
involved in the selection process, emphasized the complementary
background of the two co-managers. “With impact investing,
Microsoft looks to innovate, act as a catalyst, and partner to
create positive change. Elizabeth Park brings specialized knowledge
of regulated financial institutions, while Calvert Impact has a
track record of driving impact in underserved markets through
creative solutions and bringing other investors along,” Combs said.
“With West Potomac Capital LLC and Strategic Value Bank Partners as
sub-advisors, this truly was a case of the sum adding up to more
than the parts.”
“We’re excited by the mission of this fund and this team we are
working with,” said Truist’s head of corporate development and
Truist Ventures, Tarun Mehta. “This is an opportunity to help MDI
and CDFI banks accelerate their mission and fulfill Truist’s
purpose to inspire and build better lives and communities. We look
forward to partnering with other institutions that share our vision
for a more inclusive and equitable financial system.”
In addition to the anchor investors, Warner Bros. Discovery has
committed to the Fund, bringing the total initial commitments to
$120 million, a significant milestone towards a goal of $500
million to $1 billion.
The Federal Deposit Insurance Corporation (FDIC) encouraged the
establishment of the Fund.
"The FDIC is pleased that Microsoft and Truist have selected
managers for the Mission-Driven Bank Fund to provide capital
investment for Minority Depository Institutions and CDFI banks,”
said Betty Rudolph, Director of the Office of Minority and
Community Development Banking at the FDIC. ”These institutions play
a vital role in their communities, offering small businesses and
families access to critically needed financial products and
services.”
According to Elizabeth Park President Fred Cummings, the Fund
will invest across the capital structure. “The capital flexibility
will match the needs with capital to create lasting improvement, a
core differentiator versus a private fund’s narrow investment
mandate or aggressive ROI targets,” said Cummings.
“Access to high-quality, affordable financial products is
fundamental to the economic development of every community in the
United States. Mission-driven banks serve those who have
historically lacked access to credit and financial services, so
strengthening them strengthens communities,” said Jennifer Pryce,
president and CEO of Calvert Impact. “We’re honored to be selected
by leading companies that recognize the problem and are stepping up
to do something about it.”
MDI and CDFI banks interested in learning more or submitting a
proposal for support can email info@missiondrivenbankfund.org.
Learn more at www.missiondrivenbankfund.org.
About Elizabeth Park Capital Management
Established in 2008, Elizabeth Park Capital Management is an
institutional-focused, independent, and privately held alternative
asset manager managing long/short equity, long-only, and bespoke
products focusing on U.S. banks. EPCM uses propriety models,
processes, and framework to analyze banks and construct investment
portfolios. The firm supports community bank technology investment
through a partnership with Strandview Capital and the Btech
Consortium Fund. More at elizabethparkcm.com.
About Calvert Impact
Calvert Impact is a global nonprofit investment firm that helps
investors and financial professionals invest in solutions that
people and the planet need. During its 25+ year history, Calvert
Impact has mobilized over $4 billion to grow local community and
green finance organizations through its flagship Community
Investment Note™ and structuring services. Calvert Impact uses its
unique position to bring the capital markets and communities closer
together. More at calvertimpact.org.
Disclaimer: This press release does not constitute an offering
of interests in the Fund, which will be made only to qualified
investors pursuant to the Fund’s offering documents. Nothing
contained in this press release should be relied upon as a promise
or representation as to the future performance of the Fund. No
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to the ultimate success of the Fund or the external conditions and
circumstances under which the Fund will operate. Prospective
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activities undertaken by the Fund may differ from those described
above due to unexpected external circumstances or otherwise.
Moreover, past performance is not a guarantee of future
performance.
Certain statements made in this release are "forward looking
statements". These forward-looking statements are not predictions
of future performance, conditions or results, and are inherently
uncertain and subject to numerous risks, many of which are outside
the Fund’s and its advisors’ control. There is no obligation to
update or revise any such forward-looking statements.
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investors, and any endorsements included herein are being provided
by persons other than Fund investors. No compensation was provided
for any testimonial or endorsement. There is a conflict of interest
in that certain of these testimonials and endorsements are being
provided by persons affiliated with the Fund.
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Greg Joslyn, Lowe Group greg.joslyn@lowecom.com |
414.376.7275
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