2023 ANNUAL REPORT
MESSAGE FROM LEADERSHIP
We proudly share our annual impact report, reflecting on the past year and looking ahead. Our progress is thanks to the support of our partners – investors, developers, business owners, and CDFI partners. Our team's unwavering dedication and passion drive our mission forward.
Despite challenges of increasing inflation, high living costs, tightening credit, and small businesses recovery spilling over from 2022, we remain resilient, adaptable, and focused on impactful investments that align with our mission and values.
In year four, we did not slow down. We are proud to announce the full commitment of capital from multiple funds and the continuation of successful programs, including the launch of the second iteration of the Charlotte Housing Opportunity Investment Fund. We also launched the Black Restaurant Fund, a Capital Innovation Lab (CIL) program. The CIL focuses on developing and implementing innovative financial vehicles to increase capital access for diverse and underserved business owners and communities. The CIL now manages over $27 million in growth equity and revenue-based financing across the country.
LISC Strategic Investments now stewards $867 million in impact capital, supported by over 105+ investors and funders. Our 3,262 investments, totaling $693 million in deployed capital, have catalyzed $4.4 billion in total development, creating or preserving 15,000+ housing units. These achievements reflect our commitment to driving lasting change.
The demand for impact-first investing in affordable housing, business capital access, and sustainability continues to grow. We are working with our partners to press forward for the communities we serve. We will continue to launch new funds, service existing ones, and replicate successful fund models.
LISC has also announced its role in Power Forward Communities, a coalition of mission-driven organizations awarded $2 billion from the National Clean Investment Fund to decarbonize homes over the next seven years. With a focus on low-income and underserved communities, this coalition has brought together over 300 partners, including more than 150 local communities across 46 states. In the years to come, we look forward to creating new jobs, providing affordable homes, and reducing utility costs, all while driving a nationwide market transformation in clean energy.
Lastly, I am thrilled to share that I have recently been appointed as Interim President of LISC Fund Management and look forward to continuing to lead our organization in this vital mission. Together we can continue to achieve significant milestones and make a meaningful impact in the communities we serve.
With gratitude,
Tiffany Durr Interim President, LISC Fund Management & LISC Strategic Investments
WHO WE ARE
Our team
In our annual report, we celebrate not only our achievements but also the heart and soul of our organization—our exceptional team. At the core of our success lies a values of growth, collaboration, empowerment, and respect. Embracing diversity in all its forms, we recognize that our differences make us stronger and more innovative. Above all, we are united by a shared passion for our work, truly loving what we do each day as we come together to make a difference in the world.
Learn more about the LISC SI team [+]
ABOVE: LISC SI Team Volunteer day at Arcadia Farms, an organization that provides local families in need with fresh and healthy food options.
Contact Information:
Focused on impact
As an impact-first, mission-driven organization, we unite passionate professionals from the private and public sectors to drive transformative change. Our investment experts craft and deploy innovative products that maximize impact, minimize risk, and optimize double bottom line returns. By harnessing combinations of public, private, and philanthropic capital, we invest in both real estate and businesses, fostering collaboration among all stakeholders. Our focus on community impact guides our strategies and helps us achieve meaningful results with our partners.
Our work centers on key themes such as:
- affordable housing
- racial wealth equity
- inclusive economic development
- transit-oriented development
- green development and sustainability
We remain committed to making a difference in these areas and are continuously exploring new ways to drive positive impact. We are excited to share with you our latest through:
- LISC Fund Management
- Capital Innovation Lab @ LISC
The private investment pools sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed by LISC Fund Management, LLC (“LFM”), a wholly-owned subsidiary of LISC. LFM is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser with the SEC does not imply any level of skill or training. Please visit the SEC’s website at www.adviserinfo.sec.gov to see LISC Fund Management’s Form ADV, which contains important disclosures, including further disclosures about material conflicts of interest, risks, and limitations associated with LFM. (additional disclaimer at the end of this report.
BY THE NUMBERS
LISC Strategic Investments
Our investment strategies are purposefully designed to deploy capital from our investors and funders into impactful projects and organizations that strengthen communities across the US. In the first four years since the launch of our inaugural private investment fund, we are proud to have developed a portfolio of this scale, demonstrating significant growth in both financial and impact metrics.
*All numbers are inception to 12/31/2023, total development costs are approximate
total capital administered
investors and funders
housing units supported
dollars committed
total development costs
investments
LISC
Our parent company, the Local Initiatives Support Corporation (LISC) is one of the US’s largest Community Development Finance Institutions (CDFI) with 38 local offices, a rural program reaching 2,200+ counties in 45 states, and LISC-founded affiliates and entities. Since 1979, LISC has been supporting projects and programs to revitalize communities and bring greater economic opportunity to residents.
*All numbers are for inception 1979 to 12/31/23.
invested
leveraged
affordable homes and apartments
square feet of commercial and community space
BORROWER STORIES
We take a moment to appreciate the journey we've embarked upon and the milestones we've achieved. Whether it's launching impactful initiatives that have shaped our organizational ethos or rejoicing in the accomplishments of those we support, witnessing these highlights converge is truly inspiring.
ENTREPRENEURS OF COLOR LOAN FUND
RJ Printing
When the owner of RJ’s printing, the only Black-owned printer in Southwest Michigan, was ready to step down, he didn’t want to pass on the business to just anyone. With the support of a $150,000 LISC acquisition loan, a local graphic designer who got his start on RJ’s Printing’s founding team in 1995 was able to purchase the business and will make sure the printer will serve the community for years to come. The Entrepreneurs of Color Loan Fund purchased a portion of this LISC loan, allowing LISC Kalamazoo to reinvest the capital in similar ventures.
CAPITAL INNOVATION LAB
Kenny’s BBQ & Taco Block
Kenny Q’s BBQ and More received the first investment from the Black Restaurant Fund. The investment opened the door for Chef Kenny to be able to sell his LA famous Mac and Cheese on Amazon and working capital for restaurant improvements.
The Colorado BIPOC Micro Equity Program invested in Taco Block, a food truck company located in Denver. The investment gave the capital for the owners, Adrian and Brenda Bonilla to open a catering kitchen as the new headquarters for their food trucks around the city.
CHARLOTTE HOUSING OPPORTUNITY INVESTMENT FUND
Resident Story - Shera
Shera's story sheds light on the significance of affordable housing for working individuals and families alike. An affordable place to live serves as a stepping stone to progress, offering a foundation for stability, growth, and ultimately, the possibility of one day purchasing a home. With affordable housing, more people can break free from financial struggles and can build a better future for themselves and their loved ones. Shera is a resident of one of the CHOIF’s investments, Abbington at Mt. Holly.
DALLAS HOUSING OPPORTUNITY FUND
Dallas Housing Opportunity Fund Partners & Borrowers
Discover how the Dallas Housing Opportunity Fund is transforming affordable housing in the city. This video highlights the fund's mission to provide impactful housing solutions, supporting essential workers and their families. See how strategic investments are fostering a thriving community and making a real difference in Dallas.
BLACK ECONOMIC DEVELOPMENT FUND
Ginosko Modular
As cities search for realistic solutions for affordable housing, Black-led Ginosko Modular shines as a star model for high-quality modular buildings. Located in a highly-distressed census tract in Romulus, Michigan, the company will be able to produce standardized modules at an offsite factory, and then connect them on-site at a final destination.
Founder Amin Irving shares challenges he faced in securing capital for his development in this video. The Black Economic Development Fund’s loan is going towards the construction of this factory and supporting not only diverse entrepreneurship but also job opportunities for local residents and diverse community.
CAPITAL INNOVATION LAB
The Capital Innovation Lab @ LISC is dedicated to creating and developing innovative finance models that better serve underestimated communities by providing unique capital support. The team focuses on implementing capital programs with flexible, patient funding options, enabling more individuals to access the resources they need to succeed in their businesses and communities. To date, the Capital Innovation Lab has invested almost $8 million in over 45 businesses across 16 states.
We are proud to support diverse businesses across the country, showing up to meet them where they are and providing a solution when they need it.
Abbott-LISC Initiative to Support Diverse Businesses in Health
The Abbott-LISC Initiative addresses the equity barriers for emerging and diverse businesses in the healthcare industry by providing growth capital, loans, and coaching to businesses. By promoting the growth of small and diverse businesses, the initiative aims to foster a more inclusive healthcare supply chain and drive broader economic opportunity. In its second year, we are excited to share stories of growth recipients like Ohio-based Driven to Succeed who is using the investment capital to fill financing gaps and support business development.
Black Restaurant Fund
Investing in the growth and success of Black-owned and community serving restaurants and food service businesses is crucial to building a more equitable and diverse food industry. By bridging historic capital gaps, the fund helps restaurants and food service businesses build wealth, create jobs, and attract future investments – like Kenny Q’s BBQ and More. The Black Restaurant Fund provided an investment in order for Chef Kenny to begin selling his famous mac and cheese on Amazon, as well as working capital. In 2023, the Black Restaurant Fund invested over $417,000 in restaurants around the country, and looks to making its next investments.
Colorado BIPOC Micro Equity Program
The Colorado BIPOC Micro Equity Program empowers BIPOC small business owners and those serving underinvested communities with innovative and flexible financing for expansion, diversification, and wealth creation. The program's patient, equity-like investments are designed to feel like friends and family capital for growth focuses businesses such as Alchemy Rituals Goods and Taco Block. The program continues to accept interest from Colorado small businesses, and looks forward to the growth to come in 2024.
JPMorgan Chase Supplier Diversity Grant Program
The Diverse Supplier Grant Initiative aims to empower emerging and diverse-owned suppliers by helping them secure opportunities to work with large corporations. Through this initiative, LISC offers innovative financing to cover essential costs for business improvements and expansion. Since its inception in 2022, the program has already invested over $5 Million in 22 businesses. Thanks to an investment from the Diverse Supplier Grant Initiative, Anna Hall, the president of P & H Divine Plumbing, Inc in Chicago, is realizing her vision for growing her business. Anna made history by becoming the first female plumber to work for the City of Chicago’s Department of Water Management. Wanting to provide the same opportunities to other minorities and diversify the field of plumbing, she started her own plumbing business to offer opportunities to workers and the communities they serve.
Massachusetts Small Business Growth Fund
The MA Small Business Fund supports emerging and diverse owned businesses in Massachusetts by offering accessible and innovative growth capital investments, akin to friends and family financing. The program promotes diversification, expansion, and job creation by addressing the limited access to capital faced by economically underserved entrepreneurs. The Fund has 132 applications submitted, and has invested about $375,000 into small businesses in Massachusetts, such as Prive Parking, which was featured for being a vendor for the NAACP Convention in Boston this year.
LISC FUND MANAGEMENT
LISC Fund Management, LLC (LFM) is a SEC-registered investment advisor and a wholly-owned subsidiary of national non-profit Local Initiatives Support Corporation. As of December 31, 2023, LFM manages $840 million across 11 national and placed based mission-focused investment vehicles, dedicated to creating impact-focused financing solutions and building on proven strategies.
Reflecting on our journey and the milestones we've achieved, we are excited to share some notable updates with you. From launching impactful initiatives that define our organizational ethos to celebrating the successes of those we support, witnessing these achievements come together is truly inspiring.
*All numbers listed below are inception to 12/31/2023.
Black Economic Development Fund
The Black Economic Development Fund (BEDF) is an impact investment fund focused on addressing economic challenges in Black and underinvested communities to help close the racial wealth gap.
Since the official launch of the $250 million BEDF in June of 2021, we are proud to share in the 2023 BEDF Impact Report that we have invested $211.9 million into businesses and institutions serving the Black community in 26 states. These investments support over 5,700 units of affordable housing, 1.1 million sq. ft of mixed-use and commercial space, and contribute to an estimated $105.7 million in annual business revenue.
In May 2023, BEDF investors and partners gathered in person to learn from our borrowers like American Housing Fund, Blue Skye Development and Standard Real Estate Investments, seeing firsthand the impact of their capital. We also brought together borrowers in DC to connect with one another and the BEDF’s partners. We truly appreciate this dynamic and growing community.
Charlotte Housing Opportunity Investment Fund
In its fourth year, the $43 million Charlotte Housing Opportunity Investment Fund (CHOIF I) has closed 12 deals, creating 1,595 units, 94% of which are affordable with 25% below 30% AMI, and includes projects zoned for top-ranking schools, senior-specific housing, and diverse neighborhoods. Additionally, CHOIF I supported digital connectivity and community health initiatives through programs providing laptops, Wi-Fi, educational resources, digital literacy training, and health worker support to its communities. With new groundbreakings and completed projects, we are continuously motivated by the stories of local residents served by CHOIF I developments like those at Abbington at Mt. Holly highlighted in this video.
The second iteration of the Charlotte Housing Opportunity Investment Fund (CHOIF II) officially launched in December 2023 with an initial $12 million in capital. We are excited to continue to support inclusive economic development in Charlotte alongside mission aligned partners. The CHOIF Three-Year Impact Report remains a great resource to learn more about the Fund, its partners, & impact framework.
Detroit Housing for the Future Fund
The Detroit Housing for the Future Fund (DHFF) continues to invest in affordable housing developments across Detroit, celebrating the completion of projects and the arrival of new residents. The fund has invested in 15 affordable housing developments, creating or preserving 498 affordable housing units and supporting $89.7 million in total development. This effort has revitalized abandoned buildings and transformed empty lots into homes. Additionally, the Developer of Color and Capital Needs Assessment grant program within the Fund has provided $827,935 in grant capital to emerging developers of color.
This year’s highlights include a ribbon-cutting ceremony at one of three developments on the Hazelwood block, groundbreakings at The Ribbon at East English Village, and many other projects, underscoring the Fund's unwavering commitment to Detroit's future. We are grateful to our funders and partners who gathered in May to hear from Mayor Mike Duggan, tour DHFF developments, and share the 2023 Detroit Housing for the Future Fund (DHFF) Impact Report.
Partnership for the Bay’s Future: Family of Funds
Since its inception, The Partnership for the Bay’s Future: Family of Funds has invested over $205 million in affordable housing projects throughout the Bay Area. This investment has resulted in the creation and preservation of more than 4,400 affordable housing units, benefiting residents earning up to 80 percent of the area median income (AMI) across five Bay Area counties.
Moreover, the Partnership for the Bay’s Future coalition has established itself as a thought leader in both investment and policy strategy, tackling the Bay Area's affordable housing crisis with innovative solutions. Our coalition continues to provide valuable insights and strategies through a series of educational webinars and lessons learned, which can be accessed here.
Southern Opportunity and Resilience Fund
A big ‘thank you’ to all our 45+ Southern Opportunity and Resilience Fund (SOAR) fund partners and investors who have helped us support over 1,148 small businesses and nonprofits, with 69% receiving technical assistance in 15 states and Washington D.C. The SOAR fund is officially fully deployed, investing $62.8 million in loans - primarily to women- and minority-owned micro-businesses (having ten or fewer employees) who often struggle to receive traditional funding.
New York Forward Loan Fund
In 2022, the New York Forward Loan Fund (NYFLF) surpassed $210 million in lending and retained the leading impact evaluation firm, 60 Decibels, to assess the loan fund's effect by surveying 312 small business owners who had received NYFLF loans. It was discovered that most were first-time borrowers with 68% stating that they could not easily find another loan alternative. We are proud to share that because of the NYFLF loan, 57% of businesses improved their capacity to maintain jobs, and 68% reported better financial management skills. We thank all our partners and funders for leaning in at a time when it was most needed.
Dallas Housing Opportunity Fund
The Dallas Housing Opportunity Fund (DHOF) addresses the critical issue of affordable housing by combining public and private capital to invest in both the development and preservation of affordable housing. The DHOF focuses on households earning 80% or less of the city's median income, aiming to break down historic housing segregation. Learn more about the partners supporting the DHOF and the fund's early investments in this video highlight.
As of December 31, 2023, the DHOF has invested in 5 developments, creating 302 of affordable housing units. We are also thrilled to share that the first DHOF project, Kiva East, which broke ground in 2021, celebrated its grand opening in May 2024. Kiva East features 87 units of workforce housing and includes a new tuition-free pre-school.
Entrepreneurs of Color Loan Fund Launches with $100 Million in Commitments
In 2022, we launched the Entrepreneurs of Color Loan Fund with $100 million in commitments. In this past year we’ve focused on the fund’s mission to accelerate the flow of capital to minority-led businesses through purchasing participation-originated loans from designated CDFI partners. By freeing up local capital for additional lending to entrepreneurs of color, the Loan Fund helps break down systemic barriers that have historically limited the growth of diverse and minority businesses. Learn more about a few EOCLF portfolio businesses like TDG Scientific and RJ’s Printing.
EOCLF is part of the Entrepreneurs of Color Fund initiative which released its Early Learning Insights this year, reflecting on how the fund has expanded access to capital for underserved owners and communities. The report aims to engage funders, investors, lenders, and other small business stakeholders, highlighting effective strategies to reduce racial capital disparities and enhance economic opportunities.
OUR INVESTORS & FUNDERS
LISC Strategic Investments is thankful to have an investor and funder base that supports our mission-focused work. Partners in the funds and programs we manage range from public corporations to private foundations, from national banks to local funders, all with aligned goals and beliefs of what their capital can do for the greater good. We are grateful for all the support as we work together to build more inclusive communities across the country in which we hope everyone can thrive.
AFLAC, Inc.
Ally Bank
Amalgamated Bank
Apple Bank
Bank of America
Barings
BayCoast Bank
Block (formerly Square, Inc.)
Blue Cross/Blue Shield of Michigan
BNB Bank
Boston Children’s Hospital
Capital Impact Partners
Capital One
Chan Zuckerberg Initiative
CIBC Bank
Citi Foundation
Citizens Bank
The Colorado Health Foundation
Corporation for Supportive Housing
Costco Wholesale
Dana-Farber Cancer Institute
Destination Home
Deutsche Bank
DICK'S Sporting Goods, Inc.
Duke Energy Foundation
DuPont
Evans Bank
Fifth Third Bank
First Citizens
First Independence Bank
First Republic Bank
Flagstar Foundation
Forbright Bank
Ford Foundation
The Ford Motor Company
Foundation for the Carolinas
Genentech
The Grove Foundation
Heifer International Foundation
HSBC Bank USA, N.A.
Hubspot
The Huntington Foundation
Jewish Community Federation of San Francisco, the Peninsula, Marin and Sonoma Counties
Leon Levine Foundation
W.K. Kellogg Foundation
KeyBank
The Howard R. Levine Foundation
M&T Bank
McKinsey & Company, Inc.
Mercy Investment Services
Meta
MetLife
Microsoft Corporation
Mizuho Bank, Ltd.
Morgan Stanley
Ms. Foundation for Women
Netflix
Novant Health
The David and Lucile Packard Foundation
PayPal
Penske Corporation
Phillips Foundation
PNC
Rippleworks
The San Francisco Foundation
Silicon Valley Community Foundation
Sunflower Bank
TCF Bank
Thermo Fisher Scientific
Truist Financial Corp.
Uber
Visa Foundation
Wayfair LLC
Wells Fargo
The Ralph C. Wilson, Jr. Foundation
Winrock International Foundation
“Life’s most persistent and urgent question is what are you doing for others?”
Martin Luther King, Jr
This document has been prepared by LISC Fund Management, LLC (the “Company”). This report is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of the Company’s credit facilities or any of the Company’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the facilities or any of the Company’s offerings in any jurisdiction. Neither this report nor anything in it shall form the basis of any contract or commitment. This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.
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