Arctaris Impact Fund, LP (“Fund”), the flagship debt fund of Arctaris Impact Investors, LLC (“Arctaris”), has obtained a new $10 million warehouse line of credit (LOC) with KeyBank Community Development Lending and Investment (CDLI) through its Community Development Financial Institutions (CDFI) Group.
KeyBank CDFI’s LOC will help Arctaris bridge the timing between when investments are made, and Impact Notes are secured for long-term permanent financing. This LOC also enables speed in execution, capacity to grow the Fund, and the time Arctaris requires to source long-term capital. The Arctaris Impact Fund, LP received an A senior credit rating from Egan Jones, and the bonds were rated BBB.
The Fund makes loans that seek to create new jobs, bring diversity in small business ownership, and deliver economic empowerment of communities in need. Projects primarily consist of direct investments in small businesses, infrastructure, and affordable/workforce housing projects.
Jonathan Tower, Co-Founder and Managing Partner of Arctaris, is confident that KeyBank’s commitment will help catalyze measurable economic, social, and environmental impact, stating: “KeyBank’s strategic investment in Arctaris will amplify our capacity to grow strong, sustainable businesses in the nation’s most underserved and underfunded communities.”
“KeyBank is excited to help bring more capital to low-income and marginalized communities through its investment with the Arctaris Impact Fund,” said Brian Maddox, National Team Leader for KeyBank Community Development Financial Institutions group. “Our $10 million investment is part of our National Community Benefits Plan commitment to increase access to capital and bring greater equity for low- and moderate-income clients throughout the KeyBank footprint”.
The Fund utilizes “first-loss capital” (“FLC”) commitments from philanthropic foundations and public-private partnerships to lower its blended cost of financing. These FLC commitments help catalyze investment in underserved communities and provide diversification and risk mitigation for investors.
With more than 13 years of private credit investment experience, Arctaris has established a robust pipeline and active deal sourcing through its place-based investment programs. The Arctaris team focuses on identifying high-quality lending opportunities in disadvantaged and underinvested communities. Located in cities such as Baltimore, Cleveland, Erie (PA), and Pittsburgh, Fund investments often qualify for CRA credits.
About Arctaris Impact Investors
Arctaris Impact Investors, LLC is a Boston-based impact investment firm with experience spanning more than 13 years over seven funds. The firm manages funds which invest in growth-oriented operating businesses and community infrastructure projects located in underserved communities. Founded in 2009, Arctaris has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter’s Initiative for a Competitive Inner City (ICIC), and multiple other foundation, federal and state government agencies to invest in Opportunity Zones, inner cities and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact. For more information visit https://Arctaris.com or for press inquiries contact ir@Arctaris.com.
About KeyBank Community Development Lending and Investment
KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 10 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.
Disclaimer
© 2023 Arctaris Impact Investors (“Arctaris”). All rights reserved. Confidential and proprietary. This material may not be copied, reproduced or used in any format by any means, in whole or in part, without the prior written consent of Arctaris. Additional information may be obtained in the Arctaris Form ADV available upon request or at SEC.gov.
This press release (“Release”) is not intended to be a solicitation or sale of any investment product or security, as well as qualified in its entirety by reference to the confidential Private Placement Memorandum of Arctaris Impact Fund, LP (the “Fund”).
Statements in this release are made as of the date hereof unless stated otherwise, and neither the delivery of this release at any time nor any sale of the limited partnership interests described herein shall under any circumstances create an implication that the information contained herein is correct as of any time after such date. This release is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete.
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Contacts
Press inquiries:
ir@Arctaris.com
