ImpactAssets has added three new private debt and private equity funds to its donor advised fund, ImpactAssets Giving Fund, the firm announced recently.
The private equity and private debt funds have a lower minimum investment of $25,000 for individuals, compared to similar funds that have from $250,000 to $1 million in minimums, says Tim Freundlich, ImpactAssets president.
Through the funds, donors can provide resources, similar to venture capital, to firms that usually do not receive money from donor advised funds, says Freundlich.
The funds are:
Iroquois Valley Farms Blended Private Debt Note: A private debt fund that blends two Iroquois Valley Farms’ note offerings.
EcoEnterprises Fund III Venture Fund For Nature: The EcoEnterprises fund will invest in a diversified portfolio of 15 to 18 companies across eight countries in Latin America.
Sarona Frontier Markets Fund III: A private equity fund of funds offering that targets delivery of top-quartile returns by investing growth capital in more than a dozen private equity funds and companies that benefit local communities and the environment.
They join the MicroVest Short Duration Fund, which is a private debt fund that offers short- and medium-term debt and term deposits to low-income financial institutions.
“Through these professionally managed funds, donors can provide critical ‘gap-filling’ resources by channeling capital to strategies that are not typically funded by traditional capital markets or by philanthropy,” says Freundlich. “In many instances, client investments fuel high-impact, for-profit enterprises to develop their businesses to the point where more traditional financing becomes available to them.”
In its 2016 annual report issued earlier in September, the ImpactAssests Giving Fund reached $106 million in private debt and equity impact investments, a 25 percent increase over 2015.
“In addition to the funds our donor advisors are participating in, we are seeing a marked increase in direct company venture investments and we have just completed our 281st deal, with nine completed in the last 30 days alone,” Freundlich adds.
