CIM Enterprise Loan Fund

United States of America

Last updated 17 February 2021, by Impactyield.

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CIM is an institutional impact investment manager that provides strategic debt capital to demonstrate and scale responsible innovation in lending to underserved communities. CIM seeks to deliver positive social impact by equitable economic growth, job creation, and the health and sustainability of local communities. Since 2014, CIM has provided over􏰃 $1 billion of debt financing to more than 70,000 underserved borrowers.


Asset class

,

Fund style

Not listed


Financial description

The Fund’s core investment strategy is to construct and manage a diversified portfolio that consists principally of U.S. small business loans facilitated by a select group of technology-driven lenders that combine innovation and expertise and align their products and approach with the long-term interests of their borrowers. These small business loans include secured and unsecured commercial loans up to a maximum size of $2 million with loan term lengths generally ranging from six months to five years, with a primary focus on loans ranging in size below $500,000 and terms between one and three years. The Partnership’s portfolio includes but is not limited to investments in fractional loan interests, whole loans, loan pools, levered loan pools and loan funds.
The Fund seeks to deliver attractive risk-adjusted returns to investors (7-9% unlevered net of fees) with a short duration, diversified fixed income product that provides both financial return and positive economic and social impact. CIM's investment and risk management processes construct a balanced investment portfolio of high-yield, short duration fixed income assets diversified by loan, sector, and geography.

8 years

of track record

2015

the year funded

500,000,000 USD

AUM

SDG goals

SDG targets

Reduce poverty by at least 50%

Equal rights to ownership basic services technology and economic resources

Equal access to affordable technical, vocational and higher education

Universal literacy and numeracy

Equal rights to economic resources, property ownership and financial services

Diversify, innovate and upgrade for economic productivity

Promote policies to support job creation and growing enterprises

Full employment and decent work with equal pay

Key performance indicators

n.a.

Total Revenue of Business Funded

n.a.

Number of 1st Generation Grad Students

Fund overview

Asset manager: Community Investment Management

Product track record: Fund has 8 years of track record

Target IRR: 7%

Committed Capital: 125,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 2015

Vintage year: 2015

Target region: , , ,

Target close date: n.a.

Product term: Evergreen

Assets under management: 500,000,000 USD (US Dollar)

Investment size: Min: 10,000; Max: 3,000,000; Avg: 36,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 1

Fund investments to date exited or repaid: 34

Management fee: 1%

Carried interest: 20%

Hurdle rate: 6%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Calvert Foundation, The CapRock Group, Chilton Capital, Baldwin Brothers Inc., Athena Capital

Limited Partner / Investor Type: Endowments/Foundations, Family Office

Contact

E-mail: info@cim-llc.com

Website: http://www.cim-llc.com/index.html

Phone number: +1 (415) 857 3233

If you wish to have your details removed from this database please email gdpr@impactyield.com


Jacob Haar

Managing Partner

Michael Hokenson

Managing Partner

Jeff Hilton

Managing Director, Investments and Finance

Pam Hammond

Manager on the investment team of Community Investment Management

Chin Xing Tan

Senior Analyst

Rachel Balmy

Senior Associate

Mohammad Barkeshli

Senior Manager

Bernhard Eikenberg

Partner, Emerging Markets

Dryden Liddle

General Counsel, Chief Compliance Officer

Peter Matsis

Head of Technology

Louis Mrachek

Chief Credit Officer

Impact Performance

KPITARGET2020
Small Business Financing
# of Jobs Enabledn.a.n.a.
Total Revenue of Businesses Fundedn.a.n.a.
# of Lives Affectedn.a.n.a.
% Women, People of Color, or Veteransn.a.n.a.
Small Dollar Credit
Estimated borrower Savings vs. Alternativesn.a.n.a.
% of Borrower that Have Dependantsn.a.n.a.
% of Borrower wihtou FICO Scoren.a.n.a.
FICO for New Credit Borrowersn.a.n.a.
Education Financing. Intl Students
# of First Generation Grad Studentsn.a.n.a.
# Co-Found a Business Post-Graduan.a.n.a.
% STEM studentsn.a.n.a.
% Enrolled in Top 100 U.S. Schooln.a.n.a.
Education Financing. Workforce Training Students
% Womenn.a.n.a.
% People of Colorn.a.n.a.
Avg Salary Pre-Programn.a.n.a.
Avg Salary Post-Programn.a.n.a.
Impact thesis

Affordable financing for small businesses and historically underserved communities remains largely inaccessible from traditional lenders. Small businesses have historically been a principal engine of jobs, growth, and innovation in the economy, yet business owners cite access to capital as one of their top constraints to growth. The COVID-19 pandemic and its economic fallouts have only accentuated this problem for small businesses and underserved communities. For many individuals, household expenses are growing faster than income, largely driven by rising healthcare and education costs. Even before the current economic crisis, the median wealth of U.S. households had not yet recovered to pre-2008 levels and, according to the Financial Health Network, 71 % of Americans (1 78 million people) are defined as either Financially Coping or Financially Vulnerable. These individuals have limited access to financial products that allow them to build credit.

Over the past decade, alternative lenders with practices ranging from responsible to predatory have emerged to address this lending gap. In today's digital world, innovative lenders are able to access and analyze broad data sets, offering solutions to efficiently acquire, underwrite, and service traditionally underserved borrowers with smaller amounts of capital. We believe this lending environment will continue to propel innovation forward outside of the traditional financial players by a set of tech-sawy entrepreneurs who are designing creative, productive financial products and services that improve the financial health of underserved communities. During the ongoing crisis and the immediate disruption of physical business operations, responsible fintech lenders have shown that they can play an important role as financial first responders in part because of their ability to move quickly and due to the acceleration of digital adoption by end users that has led to improvements in data quality and infrastructure.

CIM's impact focus and investment strategy is to identify those compelling, responsible lending models and provide strategic debt capital to scale and demonstrate such innovation in lending to reach underserved borrowers. We believe this will advance financial inclusion, improve financial health of borrowers and drive widespread adoption of such innovation by the financial mainstream.

Impact Management

Impact Metrics DisclosureNo
Impact Targets DisclosureNo
Signatory of the Operating Principles for Impact Management Yes
Independent Impact Management VerificationYes