Last updated 24 May 2020, by Impactyield.

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Description

Living Cities seeks to close racial wealth gaps for people of color living in U.S. cities by investing in (1) fund managers and entrepreneurs of color and (2) funds and organizations that are testing out new, innovative ways to create income and wealth opportunities for people of color.. The Catalyst Fund and Blended Catalyst Fund are impact investment vehicles with concessionary, flexible capital that advance Living Cities’ programmatic initiatives, which are focused on closing racial wealth gaps for people of color in U.S. cities. We pursue three key tactics in our pursuit to use capital to create economic and racial justice. First, we change the decision-makers in capital markets. The people currently in power – those who decide who gets access to capital – are largely white. Research shows that people of color more often invest in businesses led by people of color. So, we are investing in capital allocators of color to increase wealth creation opportunities. Second, we test alternative methods of underwriting by investing in organizations that are changing how risk is assessed. We believe existing methodologies perpetuate disparities. Third, we invest in alternative fund models, as many traditional fund structures don’t serve people of color well.. There are two key differentiators. First, Living Cities’ investment work is not just about transactions; it’s also about learning. We are committed to innovating with capital and publicly sharing what we learn along the way. We believe this approach can accelerate behavior change in the field and get to the outcomes we seek faster. For example, our early investments in Pay for Success transactions and our willingness to share what we are learning in real time has enabled others to bypass the time-consuming and difficult work of figuring out how to underwrite these deals. Second, Living Cities’ programmatic work, staff and networks lead to the sourcing and/or creation of more effective transactions, as they support due diligence and can provide a better understanding of cross-sector actors, particularly the public sector. Living Cities’ involvement in the ecosystems of our transactions also helps mitigate the risk associated with innovation.

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Incorporation year: More than 10 years

Headquarters location:

Currency for fund / product figures:

Total firm assets under management: $51 – 99MM

Membership and other professional affiliations:

Years top investment professionals have worked together: