Enterprise Community Impact Note

United States of America

Last updated 11 May 2020, by Impactyield.

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Enterprise Community Partners makes investments that provide capital to community-based, non-profit, and mission-aligned, affordable housing and community developers, with the intent of increasing the stock and improving the quality of affordable housing and community facilities in the communities they serve in the United States.

The Impact Note is offered through Enterprise’s Loan Fund which has invested more than $1.5 billion in community infrastructure – homes, schools, health centers, etc. – for more than two decades. Loan Fund blends private, public, and philanthropic capital to provide financing that is tailored to meet the needs of community developers through direct loans and structured funds.

The Impact Note is a private fixed-income debt product available at a minimum purchase of $5,000. Terms on the Impact Note range from 1 to 10 years with correlating interest rates between 1.00% and 3.50%. Proceeds from the Impact Note are invested into real estate assets, but the Impact Note itself is secured by a third-party guarantee.

Since the Impact Note was launched in 2010, more than 350 investments have been made through the Impact Note totaling $60 million invested. Enterprise Community Partners also has a conventional equity fund available to accredited and institutional investors.


Asset class

,

Fund style

Not listed


Financial description

Loan Fund raises debt capital outside of the Impact Note through a variety of investors including financial institutions and insurance companies. All capital is placed in a revolving loan fund and used to provide flexible loan products, both on and off-balance sheet, to meet the capital needs of community developers and small businesses lacking access to traditional financing. Loan Fund is actively seeking investments to access both medium and long-term debt for large-scale housing and facilities projects.
We provide an array of financial products to our borrowers to acquire, develop and preserve affordable homes, and revitalize the surrounding community. These products include: predevelopment, acquisition, construction, bridge, permanent, growth capital and small businesses loans.
Loan Fund has a strong track record of investing in high performing projects and businesses – borrowers have defaulted on only 1.5% of all loans made. We keep adequate loan loss reserves on each loan, and a healthy amount of equity on our balance sheet maintaining a minimum net asset ratio of 20 percent. Loan Fund has never missed a timely payment to investors or failed to return an investment in full, although past performance is not indicative of future results.

12 years

of track record

2010

the year funded

50,000,000 USD

AUM

Fund overview

Asset manager: Enterprise Community Loan Fund

Product track record: Fund has 12 years of track record

Target IRR: 3.5%

Committed Capital: 26,828,982 USD (US Dollar)

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

Fund domicile:

Product status:

Style/Stage:

Inception year: 2010

Vintage year: 2010

Target region: , , ,

Target close date: n.a.

Product term: 1-10 years

Assets under management: 50,000,000 USD (US Dollar)

Investment size: Min: 5,000; Max: 0; Avg: 178,859

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 359

Fund investments to date exited or repaid: 53

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: N/A%

GIIN Investors' Council Investment: No

Limited Partners / Investors: N/A

Limited Partner / Investor Type: Family Office, Pension Funds, Other Institutional Investors, Retail Investors

Contact

E-mail: n.a.

Website: http://impactnote.org

Phone number: 8773899239.00

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


Christopher Pitts

Impact Investing Associate

Lori Chatman

President

Rachel Reilly Carroll

Investment Marketing Manager

Impact Performance

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n.a.

Impact thesis

Enterprise Community Partners is a proven and powerful nonprofit that brings together nationwide know-how, partners, policy leadership, and investment to improve communities and peoples lives. We raise private and public capital through investment and fundraising, form effective partnerships to continuously improve and innovate housing solutions that connect residents to opportunity through smart development and design.
Thanks to our investors, we provide financing to people and communities that cannot access traditional finance. Our borrowers acquire, develop and preserve affordable homes, supports equitable development, and improve their communities by expanding access to good jobs, schools, transportation and healthy living.
Loan Fund places investment capital on behalf of our Impact Note investors. We have team members on the ground in cities throughout the country, working with local government and organizations to create solutions for the most pressing community needs. Based on that work, Loan Fund identifies catalytic projects that will yield a financial return and create a positive social impact. Our expertise in underwriting and servicing those investments allows us to remain partners with our borrowers, and accountable to our investors.
We actively monitor and report the impact of our investments, quantifying benefits to both people and the community.

Impact Management

n.a.

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