Investee Profiles

 

Show Investments:

Ownership Capital

Enterprise Type

Asset Manager

Heron Commitment

Pending Profile Approval

Enterprise Profile

Pending Profile Approval

Vintage Year/Initial Investment
2016
Website
Ownership Capital

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Pending Profile Approval

Uplift America

Enterprise Type

Nonprofit

Heron Commitment

Pending Profile Approval

Enterprise Profile

Pending Profile Approval

Vintage Year/Initial Investment
2016
Website
Uplift America

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Pending Profile Approval

RSF Social Finance

Enterprise Type

Nonprofit

Heron Commitment

Pending Profile Approval

Enterprise Profile

Pending Profile Approval

Vintage Year/Initial Investment
2017
Website
RSF Social Finance

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Pending Profile Approval

SJF Ventures Fund IV, LP

Enterprise Type

Asset Manager

Heron Commitment

Pending Profile Approval

Enterprise Profile

Pending Profile Approval

Vintage Year/Initial Investment
2016
Website
SJF Ventures

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

 

Pending Profile Approval

Greenline Ventures

Enterprise Type

Asset Manager/Intermediary

Heron Commitment

Pending Profile Approval

Enterprise Profile

Pending Profile Approval

Vintage Year/Initial Investment
2016
Website
Greenline Ventures LLC

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

 

Pending Profile Approval

Calvert Foundation

Enterprise Type

Nonprofit

Heron Commitment

$2 million

Enterprise Profile

Calvert Foundation is one of the world’s leading financial institutions focused on building a more efficient impact marketplace by providing flexible capital at scale to mission-driven organizations within a diversified, global portfolio.

Vintage Year/Initial Investment
2016
Website

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Expected Returns at Time of Investment:

Social:

Calvert’s Community Investment (“CI”) Note has raised more than $1.1b from 15,000 investors over 20 years with a track record of 100% repayment. The beneficiaries of Calvert’s investments are bettering their lives and their communities. Distinct examples in 2014 included: 307 women-owned small businesses, 178 small businesses in Minneapolis-St. Paul, which created or retained 3,300 jobs and small and medium sized US enterprises, which created or preserved 5,154 jobs.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. The Calvert Foundation can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

CECP

Enterprise Type

Nonprofit

Heron Commitment

$900,000

Enterprise Profile

CECP is a coalition of CEOs united in the belief that societal improvement is an essential measure of business performance. Founded in 1999, CECP has grown to a movement of more than 150 CEOs of the world’s largest companies across all industries. Revenues of engaged companies sum to $7 trillion annually. A nonprofit organization, CECP offers participating companies one-on-one consultation, networking events, exclusive data, media support, and case studies on corporate engagement.

Vintage Year/Initial Investment
2015
Website
CECP

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

To support the launch of CECP's Strategic Investor Initiative until sufficient revenue is generated to self-fund the program.

Expected Returns at Time of Investment:

Social:

CECP will engage investors, asset managers and CEOs of many of the world’s largest companies in a productive dialogue about the value of ESG factors. The Strategic Investor Initiative has great potential to move the economy towards the long-term perspective needed in order to help people and communities help themselves out of poverty and to thrive.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. CECP can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Breckinridge

Enterprise Type

Asset Manager

Heron Commitment

$25 million

Enterprise Profile

Breckinridge Capital Advisors is an independently owned investment advisor and benefit corporation, specializing in investment-grade fixed income portfolio management.  Breckinridge’s long-term focus and forward-looking research is continuously striving to discover and prioritize those risks and opportunities that will matter most over time. As such, they were early among fixed income managers to integrate the analysis of environmental, social and governance (ESG) factors into the investment process. Breckinridge believes that companies and municipalities with stronger ESG scores relative to their peers are likely to be better prepared to meet future challenges and new opportunities.

Breckinridge also has the ability to partner with clients to customize portfolios to meet client-driven exclusionary screening criteria.

Vintage Year/Initial Investment
2015
Website
Breckinridge

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s separate account is comprised of investment grade corporate bonds that meet Breckinridge’s integrated ESG screening criteria. The account also has the ability to invest up to 20% of assets in
government-related obligations.

Expected Returns at Time of Investment:

Social:

Breckinridge believes that its assessment of ESG risks and opportunities gives it a competitive edge relative to peers at evaluating the credit risk of corporate and government borrowers, assessing the quality of management teams, and identifying future risks in a company’s operating model. Therefore, social return is thought to be integrated into long-term financial return expectations.

Financial:

Heron expects market rate returns that track closely to the Barclay's U.S. Intermediate Credit Bond Index.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Sustainable Finance-Real Economies (SFRE) Sapphire Fund

Enterprise Type

Investment Company

Heron Commitment

$1.8 million

Enterprise Profile

Sustainability | Finance | Real Economies (SFRE, pronounced Sapphire), is the first global open-ended investment umbrella fund developed to deploy substantial amounts of long-term capital to support a broad range of sustainability-focused banks with a proven track record of serving the real economy by meeting the needs of individuals, enterprises and communities they serve whilst also delivering robust and stable financial returns. SFRE is a Luxembourg SICAV-SIF with its initial compartment (SFRE Fund) established in February 2015.

SFRE's Investment Manager effective March 1, 2017 is Triodos Investment Management, a leader in sustainable finance with $3.2 billion under management.

Vintage Year/Initial Investment
2015
Website
SFRE

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

According to the private placement memo the fund will provide Tier 1 and Tier 2 capital to sustainable financial institutions (SFIs) globally with approximately 65% of investees in emerging markets and 35% in developed markets.

Expected Returns at Time of Investment:

Social:

The investment aims to demonstrate the power of the banking model focused on meeting human needs in the real economy as an alternative successful strategy for the banking sector. If successful, these investments will yield economic benefits of growing the real economy and the local economies of SFI investees.

Financial:

SFRE expects to generate a market-rate return derived from both NAV growth and dividends from its sustainable financial institution investees. 

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Latino Community Credit Union

Enterprise Type

Nonprofit

Heron Commitment

$250,000

Enterprise Profile

Latino Community Credit Union (LCCU) is a member-owned nonprofit financial institution offering bilingual financial services, better credit options, and financial education to a diverse membership. Its mission is to integrate newcomers and the underserved into the U.S. financial system.

Vintage Year/Initial Investment
2007
Website
Latino Community Credit Union

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s infusion of secondary capital will support LCCU’s growth in lending for home mortgages, auto loans, and other consumer loans.

Expected Returns:

Social:

LCCU serves 50,000 members, of whom 95% are low-income and 75% were previously unbanked. We expect our investment to enable $2.8 million in new lending, of which approximately 50% will be home mortgages.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

Adena Ventures, LP

Enterprise Type

Asset Manager

Heron Commitment

$350,000

Enterprise Profile

The Appalachian Ohio Development Fund, L.P. is an outgrowth of the efforts of the Appalachian Regional Commission (ARC) to increase the supply of equity and near-equity capital available in the Appalachian region.

Vintage Year/Initial Investment
2000

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

The funds will be used to purchase stock or provide convertible subordinated debt to small, closely-held companies in southeastern Ohio. The companies can be start-ups, or mature companies in a growth phase.

Expected Returns:

Social:

The fund will report job creation and retention in southeastern Ohio as its impact measure. The purpose and size of the proposed fund’s investments meet qualifying tests for banks to invest under their Community Reinvestment Act (CRA) obligations.

Financial:

Market returns for community development venture capital (lower than for conventional venture capital) are expected. The foundation cites significant start-up risk in achieving the expected return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

National Organization on Disability

Enterprise Type

Nonprofit

Heron Commitment

$1.5 million

Enterprise Profile

NOD works with leading companies to increase employment opportunities for people with disabilities. The centerpiece of NOD's current work is "Bridges to a Better Workforce", through which NOD provides advisory services to employers to support them in increasing the hiring, retention, and promotion of people with disabilities in their workforce. NOD also engages over 30 corporations in its "CEO Council" — a forum for learning and information sharing among leading employers seeking to increase disability inclusion. Following successful engagements with Lowe's, Toys'R'Us, Starbucks and others, NOD has become a sought after advisor for corporations who recognize the strong business case for hiring and retaining people with disabilities.

Vintage Year/Initial Investment
2014
Website
National Organization on Disability

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

NOD has raised capital to support its transition from a totally grant-based business model to a model that generates substantial earned revenue. The organization needs capital to cover its operating losses while building its capacity and volume of business.

Expected Returns at Time of Investment:

Social:

By 2018, NOD expects to have contracted with some 25 companies across more than 100 sites resulting in the hiring of 2,100 employees with disabilities. The long-term impact of NOD's work will far exceed this, through permanently changing the hiring practices of major employers. While it its operating budget is expected to shrink as old programs are closed and then grow again as Bridges grows, the total budget size is projected to be similar in 2014 and 2018. Its revenue mix will shift from 100% contributed to 73% earned.

Financial:

No financial return to Heron is expected. As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. NOD can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Family Independence Initiative

Enterprise Type

Nonprofit

Heron Commitment

$1.5 million

Enterprise Profile

Family Independence Initiative trusts and invests directly in low-income families across the nation so they can work individually and collectively to achieve prosperity. We do this by providing families with a technology platform that they use to strengthen existing and create new social networks, access financial capital and incentives, set goals and monitor progress, and support one another in achieving mobility. Using the rich strength-based data and stories of our families’ progress, we invite low-income residents, foundations, the media, policymakers, and others across the U.S. to collectively re-think our social and economic systems to one that fortifies social connections, invests in initiative, and honors self-determination.

Vintage Year/Initial Investment
2014
Website
Family Independence Initiative

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

FII is using funds to dramatically expand the number of families it reaches and to advance what the organization is learning from the data families report. Specifically, FII is investing in technology, communications and fundraising capacity.

Expected Returns at Time of Investment:

Social:

FII’s approach will become widely adopted; that is, low-income family cohorts will use their own networks, self-reported data about their own progress and access to resources to help themselves and their communities out of poverty. As a result, public and private dollars will be allocated, not only to a resources to families, but also to fostering and investing in initiative. By 2017, FII plans to be collecting data from at least 7,000 U.S. families on an annual basis.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. FII can use these surpluses to build its balance sheet and to reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

DBL Partners, Fund III

Enterprise Type

Asset Manager

Heron Commitment

$5 million

Enterprise Profile

DBL Partners, LP ("DBL") Fund III uses venture capital to accelerate innovation in a way that positively affects an organization’s social impact as well as its financial success. DBL invests in and helps nurture outstanding entrepreneurs and companies in the cleantech, information technology, health care, and sustainable products and services sectors.

Vintage Year/Initial Investment
2014
Website
DBL Investors

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

n/a

Expected Returns at Time of Investment:

Social:

Investment in companies that will create 5,000 quality jobs, of which 2,500 are for low and moderdate income individuals. The companies in which DBL invests will also have a positive impact on the communities in and near where they are located.

Financial:

We expect a market-rate return commensurate with private equity funds.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Council for Adult & Experiential Learning

Enterprise Type

Nonprofit

Heron Commitment

$2 million

Enterprise Profile

The Council for Adult & Experiential Learning (CAEL) links learning and work. CAEL is a national nonprofit that works at all levels within the post-secondary institutions, public, and private sectors to make it easier for adults to get the education and training they need.

There are several challenges in the world today facing adult learners, and CAEL has identified solutions that can make a big difference in how many adults return to college, complete their degree and gain meaningful employment. Selected investments in these solutions could help CAEL significantly increase its reach and impact, and could reach thousands more adult learners in our economy.

Vintage Year/Initial Investment
2014
Website
Council for Adult & Experiential Learning

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds will be used to invest in refining CAEL's products and technology as well as expanding its capacity in sales, marketing, product development and  delivery.

Expected Returns at Time of Investment:

Social:

CAEL will expand the number of employers, post-secondary institutions and workforce development entities it partners with in order to reach a much greater number of the ~103 million adults in the U.S. whose long-term employability likely requires greater educational attainment.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. CAEL can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Bridges Ventures

Enterprise Type

Asset Manager

Heron Commitment

Unpermitted to disclose

Enterprise Profile

Unpermitted to disclose.

Vintage Year/Initial Investment
2014
Website
Bridges Ventures

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Unpermitted to disclose.

Aperio Group

Enterprise Type

Asset Manager

Heron Commitment

$58.7 million

Enterprise Profile

Aperio offers Socially Responsible Investment (SRI) indexing strategies for public equity (stock) portfolios. Aperio’s process begins with an exploratory process where prospective clients are asked to determine the social and environmental issues that are most meaningful to their organizational values. The Aperio team then establishes a customized score for each client using agreed upon positive and negative screening tactics. The portfolio construction process then uses an optimization technique to maximize the client’s weighted average social value score and minimize active risk relative to the parent index.

Vintage Year/Initial Investment
2014
Website
Aperio Group

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

In partnership with Aperio, Heron developed a customized social value score that considers five positive scoring factors: workforce, community & politics, diversity, environmental performance, and climate change. Aperio rates all companies using Heron’s positive scoring criteria, then uses its portfolio optimization model to maximize Heron’s social score while mitigating active risk relative to the Russell 3000 Index.

Expected Returns at Time of Investment:

Social:

Heron does not generally focus on measuring the additionality of its investments in large publicly traded companies. We do, however, recognize the important role that large companies play in our economic and environmental ecosystem and therefore aim to invest in companies that are net positive contributors to society. In partnership with Aperio, we hope to send a signal that investors can invest in a values-aligned public equity portfolio without sacrificing competitive market-rate returns.

Financial:

Heron expects a market-rate financial return commensurate with the Russell 3000 Index of publicly traded equities.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Center for Financial Services Innovation

Enterprise Type

Nonprofit

Heron Commitment

$1.5 million

Enterprise Profile

Founded in 2004, the Center for Financial Services Innovation (CFSI) has grown to become the nation's leading authority on consumer financial health. CFSI's mission is to improve the financial health of Americans, especially the underserved, by shaping a robust and innovative financial services marketplace with increased access to higher quality products and practices. Through its membership and convening power, CFSI informs, advises, and connects financial service providers and influencers to transform the financial services landscape and make it more equipped to respond to the needs of underserved Americans.

Vintage Year/Initial Investment
2014
Website
Center for Financial Services Innovation

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

This capital campaign will support CFSI in hiring key personnel to enable CFSI’s shift to a membership network business model. The membership network will help to grow earned revenue for CFSI while simultaneously enhancing its ability to connect with financial sector stakeholders, and therefore, improve the quality of products and services available to American consumers. 

Expected Returns at Time of Investment:

Social:

By expanding its network of financial service providers, enablers, and influencers, CFSI will be better equipped to catalyze systemic change in the consumer financial service sector and thereby improve consumer financial health. By 2018, CFSI aims to:

1) grow to 250 network participants, (85% financial providers, 15% non-providers);

2) create 25 new high quality financial service product offerings;

3) influence 25% of network participants to actively measure financial health outcomes;

4) acquire a digital audience of 25,000 individuals.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. CFSI can use these surpluses to build its balance sheet and to reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Paraprofessional Healthcare Institute

Enterprise Type

Nonprofit

Heron Commitment

$1.5 million

Enterprise Profile

PHI was founded in 1991 to disrupt the sector-wide cycle of turnover in direct care that offered only part-time, poor quality jobs to a frontline workforce that is predominantly women and disproportionately women of color and immigrants to the United States. In partnership with a network of high-road employers in New York City, PHI develops and tests the most promising solutions to reduce economic insecurity for direct care workers and to empower them as valued professionals integral to the health of their clients. PHI scales its impact by disseminating best practices and promoting effective public policies, changing the predominant narrative of direct care work and incentivizing public and private investment in the 4.4 million direct care workers in the U.S.

Vintage Year/Initial Investment
2013
Website
Paraprofessional Healthcare Institute

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s investment will support PHI to expand training capacity, develop video and web-based training products, and strengthen its balance sheet.  In addition the investment will allow for PHI’s support to their affiliated home care system as it expands – projected to double in size and reach $300 million dollars in revenue, employ 3,000 workers and provide services to more than 5,000 clients.

Expected Returns at Time of Investment:

Social:

Heron’s investment will facilitate an expansion of scale and scope in PHI’s training work. Hiring new trainers will allow PHI to meet the 90% increase in demand, resulting from creation of direct care jobs at its affiliated worker-owned cooperative and across the county; and the development of video and web-based training will double the reach of PHI’s facility-based services.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. PHI can use these surpluses to build its balance sheet and to reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

HCAP Partners

Enterprise Type

Asset Manager

Heron Commitment

$3 million

Enterprise Profile

HCAP Partners (formerly Huntington Capital) is a mezzanine debt and growth equity fund serving lower middle market companies in the western United States. The fund invests primarily in small and medium sized businesses in underserved low- and moderate-income (LMI) communities.

Vintage Year/Initial Investment
2013
Website
Huntington Capital

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s investment will support growth at small, underserved companies (revenues between $5 million and $75 million) in the western US, with individual deal size in the range of $1 million to $9 million.

Expected Returns at Time of Investment:

Social:

HCAP Partners has an established track record of providing capital to “underserved” businesses that (i) tend to employ low-to-moderate income and ethnic minority employees (ii) are located in LMI zones and/or (iii) owned and operated by ethnic minorities.  Our approach to impact is operationally focused and based around creating high quality jobs at our portfolio companies using an internally developed framework called The Gainful Jobs Approach which focuses on key impact themes surrounding economic opportunity and health and wellness.  Through this framework, we measure job quality standards at time of investment and work with portfolio company leadership to build and implement strategic roadmaps with the intent of improving job quality.  We believe high quality jobs increase employee engagement and reduce turnover among other benefits, thereby improving overall performance.  

As of Q1 2017, HCAP Partner’s portfolio companies in Funds II and III have created or retained 7,837 employees across the investment portfolio.  Since investment (to exit for realized investments), these portfolio companies have created 823 new job positions.  In addition, for Fund III, 50% of the workforce is minority and 74% of the jobs employ low to moderate income employees. 

Financial:

HCAP Partners seeks to achieve above market rate investment returns using a variety of flexible yield enhancement structures including warrants, success fee, and “royalty-based financing,” whereby business owners agree to pay a percentage of the increase in their gross revenues, allowing HCAP to participate in the growth without owners sacrificing control as under traditional equity investments. 

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Craft3 Capital Corporation

Enterprise Type

Private For-Profit Company

Heron Commitment

$5 million

Enterprise Profile

Craft3, a nonprofit, created Capital Corporation as a subsidiary to house new senior loans it will make to strong small businesses that were hurt by the banking crisis of 2008, and face issues now in accessing bank loans.

Vintage Year/Initial Investment
2013
Website
Craft3 Capital Corporation

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s investment is syndicated with two additional investors, and will provide lending capital to Craft3’s Capital Corporation.

Expected Returns at Time of Investment:

Social:

Craft3 expects to make up to 80 small business loans, creating and retaining 4,000 jobs and stabilizing the critical small-business sector. Capital Corp also demonstrates new ways for CDFIs to source and leverage capital in innovative subsidiaries.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

CoMetrics

Enterprise Type

Private For-Profit Company

Heron Commitment

$2.5 million

Enterprise Profile

CoMetrics, Inc. combines, tracks, and benchmarks both financial and impact data from social enterprises as a means of improving organizational performance, increasing financial return, and reducing risk. CoMetrics designs common reporting formats that allow a group of enterprises (or their investors) to aggregate and compare performance data across a range of detailed financial and social impact metrics.

Vintage Year/Initial Investment
2013
Website
CoMetrics

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

CoMetrics is scaling to serve a larger audience of enterprises and investors. The company is making a range of investments in technology (software and hardware), product development, marketing, and management to support its growth.

Heron made a follow-on investment in 2015 of $1 million.

Expected Returns at Time of Investment:

Social:

Expansion of CoMetrics will decrease reporting burden and expense across the social sector. Businesses and social enterprises, as well as their investors, will have a new way to collect, aggregate, report and analyze critical social impact and financial performance data. Not only can this system improve the business performance of each individual social enterprise served, but it also has the potential to attract more investors to social enterprise funding, by improving the transparency, cost and reliability of information to levels that are standard in most investment practices.

Financial:

As this is an equity PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Buffalo Niagara Medical Campus

Enterprise Type

Nonprofit

Heron Commitment

$1.5 million

Enterprise Profile

BNMC is a consortium of the region's premier healthcare, life sciences research, and medical education institutions that invests in real estate related to the medical campus. It uses the proceeds to fund economic and community development.

Vintage Year/Initial Investment
2013
Website
Buffalo Niagara Medical Campus

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

To provide working capital during three years of rapid growth, and new risk reserves that strengthen the BNMC balance sheet. 

Expected Return at Time of Investment:

Social:

With public and private partners, BNMC will create a new facility called Innovation Center Annex and a business investment fund. The new center and BNMC’s expanded work will create new jobs directly available to neighborhood residents. In addition, using its MutualCity methodology of collaboration, problem-solving and resource sharing, BNMC aims to increase safety, healthy lifestyles, and educational opportunities, all centered around BNMC as an anchor institution in Buffalo.

Financial:

No financial return to Heron is expected. As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. BNMC can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Aseptia

Enterprise Type

Private For-Profit Company

Heron Commitment

Pending profile approval

Enterprise Profile

Pending profile approval

Vintage Year/Initial Investment
2013
Website
Aseptia

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Pending profile approval

The SASB Foundation

Enterprise Type

Nonprofit

Heron Commitment

$2 million

Enterprise Profile

Established in 2017, The SASB Foundation is responsible for the funding and oversight of the Sustainability Accounting Standards Board (SASB). The SASB maintains sustainability accounting standards that help public corporations disclose material, decision-useful information to investors in mandatory filings. SASB’s goal is to standardize how corporations measure and report data related to sustainability issues, so that investors can compare performance and direct capital to the most sustainable outcomes.

Learn more about SASB in one of our feature blog posts.

Vintage Year/Initial Investment
2013
Website
Sustainability Accounting Standards Board

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds: 

Heron’s investment is part of a capital campaign raised to grow SASB’s research team dedicated to the development of SASB standards and to launch initiatives to expand the use of those standards and generate revenues to support SASB’s ongoing work. This investment helps further develop field-wide investment practice with standards to identify corporate impact beyond financial metrics:

1) Public corporations benefit from the development of standard key performance indicators on the most important sustainability issues in their industries, enabling focused and cost-effective disclosure;

2) Investors benefit from a holistic view of sustainability risks and opportunities facing companies and access to comparable, material data that highlights the potential for value creation or destruction; investors can thus spend more time analyzing data rather than gathering it;

3) The public benefits from improved transparency and standardized information on corporate impact ultimately enhancing the competitiveness of US industries and supporting better policy decision making.

Expected Returns at Time of Investment:

Social:

SASB’s work stands to enable a shift change in the investment process. As companies receive clear and consistent guidance on a focused set of issues and indicators, investors gain a more complete and comparable view of material risks, and the public reaps the benefits of more transparent capital markets.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. SASB can use these surpluses to build its balance sheet and to reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

The Reinvestment Fund

Enterprise Type

Asset Manager

Heron Commitment

$500,000

Enterprise Profile

The Reinvestment Fund is a national leader in rebuilding America’s distressed towns and cities through the innovative use of capital and information. A community development financial institution (CDFI), TRF finances projects that build wealth and opportunity for low-wealth people and places. It also provides public policy expertise by helping clients create actionable solutions and by sharing data and analysis via www.PolicyMap.com.

Vintage Year/Initial Investment
2012
Website
The Reinvestment Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds will be used to support TRF's core loan fund, which finances affordable housing, healthy food access, commercial real estate, educational facilities, and energy efficiency projects.

Expected Returns at Time of Investment:

Social:

1,300 permanent jobs created or retained, 17,000 construction jobs created or retained.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

PolicyMap

Enterprise Type

Nonprofit

Heron Commitment

$500,000

Enterprise Profile

PolicyMap is an online data and mapping tool that enables government, commercial, non-profit and academic institutions to access data about communities and markets across the US.

Vintage Year/Initial Investment
2012
Website
PolicyMap

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds will be used to: help scale the business and accelerate growth objectives, ensuring Policy Map is a sustainable business unit of The Reinvestment Fund (TRF). 

Expected Returns at Time of Investment:

Social:

More public and private entities will have access to improved and actionable community-level data.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. PolicyMap can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs. No financial return to Heron is expected

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

SUN Initiative Financing LLC

Enterprise Type

Nonprofit

Heron Commitment

$1 million

Enterprise Profile

The Stabilizing Urban Neighborhoods Financing Initiative (SUN or “SUN Initiative”) is a foreclosure prevention program formed by Boston Community Capital (BCC) in 2009. SUN and its affiliates purchase owner-occupied for closed and distressed properties and sell them back to the homeowners at the adjusted and affordable rates. By deploying this capital on a wholesale basis, SUN’s goal is to mitigate the negative social and economic effects that stem from the displacement of families in foreclosure. 

Vintage Year/Initial Investment
2016
Website
Boston Community Capital Foreclosure Relief

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s original investment in 2012 was a three-year commitment to support the SUN Initiative’s
lending operation in Massachusetts, Maryland, and Rhode Island. We then renewed our loan in 2016 to continue to support SUN’s existing operations and help them expand into other states (Illinois, New Jersey, and potentially elsewhere in the U.S.). 

Expected Returns at Time of Investment:

Social:

SUN provides families at risk of foreclosure with 30-year mortgages at a fixed rate, which on average results in payments that are close to 40% less than they were previously paying. From inception in 2009 through March 2016, the SUN Initiative has provided over $100 million to in mortgage financing to 550 properties to enable over 660 families to remain in their homes. 

Financial:

This investment is a debt PRI. We expect to receive a below-market-rate of return with interest payments paid quarterly. 

Success Measures

Enterprise Type

Nonprofit

Heron Commitment

$250,000

Enterprise Profile

Success Measures provides the community development and financial capability fields with an accessible way to collect, analyze and use data for continuous learning and improvement, telling stories of change and demonstrating results. The program operates as a social enterprise at NeighborWorks America, a national affordable housing and community development intermediary.

Vintage Year/Initial Investment
2012
Website
Success Measures

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds of the grant will be used to spur and support the next phase of Success Measures' growth through investment in technology, capacity, intellectual capital and marketing. 

Expected Returns at Time of Investment:

Social:

Increasing the scale of Success Measures' operations has allowed the enterprise to continue to expand the number of new organizations served annually from 170 in 2011 to 410 so far in 2015, surpassing the plan’s initial 2015 goal of 360. With greater numbers served thereafter, Success Measures will shape the impact of tens of billions of dollars supporting its nonprofit clients annually.

Financial:

As a result of this investment, we expect the enterprise to continue to generate sufficient predictable/reliable revenue that will yield surpluses annually. Success Measures can maintain its practice of using these surpluses to build its balance sheet and reinvest in its routine growth and change needs.  No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

SJF Ventures Fund III, LP

Enterprise Type

Asset Manager

Heron Commitment

$2 million

Enterprise Profile

Growth equity fund focused on US companies in clean technology and tech-enhanced service sectors, including investments in recycling & reuse, renewable energy, energy efficiency, sustainable food and agriculture, health and wellness, education technology and workforce technologies.

Vintage Year/Initial Investment
2012
Website
SJF Ventures Launches Third Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds will be used to invest in revenue generating enterprises. Average investment size will range from $2MM to $7MM, structured primarily as common or preferred stock.

Expected Returns at Time of Investment:

Social:

1)Investments will help companies with business models tied to specific social and environmental impacts to scale;

2) Increased # of full-time equivelent employees in portfolio companies. Currently at 7,074, with 5,486 created after SJF invested.;

3) Maintained or raised average entry-level wage (currently at $17.67/hour);

4) Employee benefits maintained or expanded.

Financial:

We expect a market-rate return commensurate with private equity funds.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Housing Partnership Network

Enterprise Type

Nonprofit

Heron Commitment

$1.5 million

Enterprise Profile

The Housing Partnership Network is a member-driven business collaborative of 100 of the leading housing and community development nonprofits in the country. It was founded 20 years ago by a new breed of entrepreneurial nonprofit that combines social mission with private enterprise to develop solutions to the most challenging problems facing our country.

The HPN approach is based on members sharing best practices through peer exchange from which new ideas emerge for innovation in the housing and community development sectors. The result is a platform of impactful social enterprises that inform our policy recommendations and enhance members' self-sustainability.

Vintage Year/Initial Investment
2012
Website
Housing Partnership Network

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s investment enables HPN to capitalize a revolving R&D fund to more quickly translate ideas into actionable business plans, with new enterprises to pay back into the fund after launch.  

Expected Returns at Time of Investment:

Social:

This philanthropic equity investment will support HPN’s effectiveness, entrepreneurial spirit, and ability to innovate, scale and to respond appropriately to the needs of its members by conceiving of, vetting, and scaling social enterprise opportunities for its members. These enterprises in turn provide the Network with a diversified revenue stream to strengthen its long-term sustainability. HPN and its members have an outsized impact on affordable and community lending. The network comprises only 7% of CDFI loan funds but accounts for 35% of industry volume and 30% of properties acquired through the National Community Stabilization Trust.

Financial:

As a result of this investment, we expect the enterprise to generate sufficient predictable/reliable revenue that will yield surpluses annually. HPN can use these surpluses to build its balance sheet and reinvest in its routine growth and change needs. No financial return to Heron is expected.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Ecologic

Enterprise Type

For-profit Private Company

Heron Commitment

Pending profile approval

Enterprise Profile

Pending profile approval

Vintage Year/Initial Investment
2012
Website
Ecologic Brands

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Pending Profile Approval

Habitat for Humanity International

Enterprise Type

Nonprofit

Heron Commitment

$4.5 million

Enterprise Profile

FlexCAP is a Habitat for Humanity International administered program that enables participating Habitat affiliates to leverage their mortgage portfolios, thereby generating additional funding to produce decent, affordable housing in partnership with low-income families. Through FlexCAP, Habitat for Humanity has developed a consistent secondary market for Habitat mortgages on a national basis. Since 1997, Habitat for Humanity International has raised approximately $140 million in investments that have been loaned to 270 U.S. affiliates. According to Habitant for Humanity in its 18-yeat history, FlexCAP has a 100-percent on-time repayment rate.

Vintage Year/Initial Investment
2012
Website
Habitat for Humanity International

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

The debt investments were deployed to HFHI’s FlexCAP program. The FlexCAP program allows local affiliates to borrow against their mortgage portfolios, freeing cash to support the ongoing operation of homebuilding. Proceeds will be used finance homeownership to families earning 30-60% of average area median income.

Expected Returns at Time of Investment:

Social:

Four separate investments in the HFHI FlexCAP program (2009-1, 2009-2, 2010-2, and 2012-1) will help finance the building of 958 homes by 2017. Affordable homeownership is linked to improvements in health and physical safety, as well as educational and job prospects.

Financial:

Heron has four separate loans outstanding to Habitat’s FlexCAP program. All four loans qualify as debt PRI investments.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Self-Help Enterprises

Enterprise Type

Nonprofit

Heron Commitment

$750,000

Enterprise Profile

Self-help Enterprises (SHE) is organized to finance pre-development & construction of self help homes for low-income people.

Vintage Year/Initial Investment
2011
Website
Self-Help Enterprises

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds of the investment will be used to finance homeownership predevelopment activities (land acquisition, site control, infrastructure installation, engineering, architecture, environmental testing) and construction loans for low income people.

Expected Returns at Time of Investment:

Social:

Over the six-year investment term, SHE expects to turn the capital approximately six times resulting in the construction of 450 homes and the creation of approximately $6.75MM of wealth for homeowners (assuming that the average self-help homeowner amasses about $15mm in sweat equity). 

Financial:

The 6-year term loan is a debt PRI, and therefore, will generate a below market-rate return to Heron.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

 

Federation of Appalachian Enterprises, Inc.

Enterprise Type

Nonprofit

Heron Commitment

$500,000

Enterprise Profile

FAHE is a member-governed network of 46 community-based nonprofit housing developers in Central Appalachia. FAHE makes home mortgage loans to its members’ low-income clients.

Vintage Year/Initial Investment
2010
Website
Federation of Appalachian Enterprises, Inc.

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

FAHE will provide loans to its members for acquisition, rehabilitation, construction, lines of credit and term loans.

Expected Returns at Time of Investment:

Social:

FAHE members will continue to provide housing for low-income families in chronically distressed Central Appalachia, with a particular focus on metro areas and the working poor. In addition, FAHE’s innovative membership network continuously builds capacity among Appalachian nonprofit housing developers and works to find solutions to capital dysfunctions in the rural, underserved region.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Boston Community Loan Fund, Inc.

Enterprise Type

Nonprofit

Heron Commitment

$750,000

Enterprise Profile

Boston Community Loan Fund ("BCLF"), an affiliate of Boston Community Capital, invests in affordable housing, community facilities and commercial real estate lending that builds healthy low-income communities by connecting people to the mainstream economy and the capital markets.

Vintage Year/Initial Investment
2010
Website
Boston Community Loan Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds of the loans will be used to support BCLF's loan program with regard to affordable housing, commercial real estate development, and child-care facilities.

Expected Returns at Time of Commitment:

Social:

The loan proceeds will be used to finance affordable housing units, commercial real estate, community facilities, and low-income rental housing in low and moderate income areas. 

Financial:

The 8-year term loan is a debt PRI. We expect a below-market rate interest payment to be paid semi-annually.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

New Hampshire Community Loan Fund

Enterprise Type

Nonprofit

Heron Commitment

$500,000

Enterprise Profile

New Hampshire Community Loan Fund ("NHCLF") is one of the first Community Development Financial Institutions in the U.S., they collaborate with a wide range of partners to provide financing and education so that people with low and moderate incomes have the opportunity for affordable housing, quality jobs, child care and early childhood education, and to become financially independent. 

Vintage Year/Initial Investment
2009
Website
New Hampshire Community Loan Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

The proceeds of this senior loan will be used to support NHCF's general loan fund, through which it originates home mortgages, co-op conversion mortgages to manufactured housing parks, community facility loans, and small business loans. 

Expected Returns at Time of Investment:

Social:

1. 385 home mortgages made, totalling $9.9MM.
2. 49 loans to manufactured home parks totalling $31MM, benefiting 2,590 shareholders.
3. 328 small business loans totalling $8MM, impacting 700 employees. 

Financial:

7 year loan at 4.0% classified as a PRI

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Rural Community Assistance Corporation

Enterprise Type

Nonprofit

Heron Commitment

$500,000

Enterprise Profile

RCAC provides technical assistance, training, and financing related to environmental infrastructure, affordable housing, community facilities, small businesses and economic development in rural communities in the western US and the Pacific Islands.  

Vintage Year/Initial Investment
2009
Website
RCAC

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

The funds raised will support RCAC’s core lending activities, 60% of which are related to affordable housing.  

Expected Returns at Time of Investment:

Social:

RCAC projects that it will finance more than  1,900 housing units during the term of this loan, including over 1,000 for-sale homes. Most of RCAC’s loans are for short-term uses that are difficult to finance through banks, especially land acquisition and pre-development expenses.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Native American Bancorporation Co.

Enterprise Type

Private For-profit

Heron Commitment

$300,000

Enterprise Profile

NAB is the first intertribal wholesale bank in the US, founded in 2001 by 11 tribal investors to increase access to finance among Native Americans. NAB operates as a community development financial institution (CDFI), providing both intertribal lending and reservation-based retail banking.

Vintage Year/Initial Investment
2009
Website
Native American Bank

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Heron’s investment will contribute to Tier I capital needed to maintain capital adequacy as the bank increases its commercial lending to Native American tribes and tribal businesses.

Expected Returns at Time of Investment:

Social:

Native Americans rank last among all demographically identified groups in America in terms of income, employment, housing, and access to mainstream financial services. As a CDFI, NAB’s focus is on this underserved and often low-income population.

Financial:

As this is an equity PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

 

Housing Assistance Council

Enterprise Type

Nonprofit

Heron Commitment

$750,000

Enterprise Profile

HAC, a national nonprofit organization, helps build homes and communities in rural America by providing programs and services that focus on local solutions, empowerment of the poor, reduced dependence, and self-help strategies. HAC provides below-market rate financing, technical assistance, training, research, and information services to the nonprofit, for profit, and public sectors.  

Vintage Year/Initial Investment
2009
Website
Housing Assistance Council

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Financing is available for new and/or existing single- and multifamily housing projects. Funds may be used to support pre-development, site acquisition, site development, and unit rehabilitation or construction activities.

Expected Returns at Time of Investment:

Social:

Since Heron began supporting HAC in 1999, over 5,568 housing units (143 loans) have been financed through HAC’s Rural Housing Loan Fund (RHLF). Over the course of this loan, Heron expects 125 loans financing over 3,500 units of single-family, including self-help housing, with Heron’s funds to directly account for 100-200 units.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Blackrock

Enterprise Type

Asset Manager

Heron Commitment

Unpermitted to disclose

Enterprise Profile

Unpermitted to disclose

Vintage Year/Initial Investment
2009
Website
Blackrock

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Unpermitted to disclose

RBC Global Asset Management

Enterprise Type

Asset Manager

Heron Commitment

$19 million

Enterprise Profile

RBC Global Asset Management, Inc (RBC GAM) is a North American-based asset manager with global scope and industry-leading investment management capabilities.

Vintage Year/Initial Investment
2009
Website
RBC Global Asset Management

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Through the use of the RBC Access Capital Investment Strategy, Heron will purchase high quality fixed income securities that are customized or screened to generate market-rate returns as well as positive social impact through investments supporting the core interests of the Foundation.

Expected Returns at Time of Investment:

Social:

We expect to indirectly finance community development activities such as homeownership, affordable rental housing, healthcare, education, small business development, job creation and infrastructure within and among low and moderate income individuals and communities.

Financial:

We expect market rate returns that track closely to the Barclay's U.S. Aggregate Bond Index.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Northwest Louisiana Community Development Fund I, LLC

Enterprise Type

Asset Manager

Heron Commitment

Unpermitted to disclose

Enterprise Profile

Unpermitted to disclose

Vintage Year/Initial Investment
2008
Website
Northwest Louisiana Community Development Fund I

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Unpermitted to disclose

Yucaipa Corporate Initiatives Fund II, LP

Enterprise Type

Asset Manager

Heron Commitment

$5 million

Enterprise Profile

Yucaipa Corporate Inititatives Fund II, L.P. (the "Yucaipa II fund") is sponsored by The Yucaipa Companies and Johnson Development Corporation.

Vintage Year/Initial Investment
2007

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

The Yucaipa II fund seeks to take influential stakes in established high growth potential small- to mid size companies in inner cities and rural areas, with a focus on minority- and women-owned businesses. 

Expected Returns at Time of Investment:

Social:

The Yucaipa II fund seeks the creation of over 1,500 new jobs.

Financial:

Heron expects a market-rate return commensurate with private equity funds.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Pacific Community Ventures Investment Partners III, LLC

Enterprise Type

Asset Manager

Heron Commitment

Pending Profile Approval

Enterprise Profile

Pending Profile Approval

Vintage Year/Initial Investment
2007
Website
Pacific Community Ventures

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

 

Pending Profile Approval

Community Reinvestment Fund

Enterprise Type

Nonprofit

Heron Commitment

$1 million

Enterprise Profile

Community Reinvestment Fund, USA (CRF) is a national nonprofit with a mission to improve the lives of disadvantaged people and strengthen distressed communities through innovative finance. CRF provides capital to communities through its network of lending partners, investors, and contributors to create jobs and turn struggling neighborhoods into flourishing communities.

Vintage Year/Initial Investment
2007
Website
Community Reinvestment Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

The proceeds will be used to purchase community development and affordable housing loans and to pledge those loans as collateral for future Community Reinvestment Notes. More recently, CRF has added a new tool to its product mix which is originating SBA 7(a) loans to small businesses. In the future, CRF anticipates issuing Notes backed by the unguaranteed portion of SBA 7 (a) loans. The proceeds of the subordinated loan will also enable CRF to credit enhance its own Notes by assuming the risk of first loss. As a subordinated loan, the investment becomes a part of the capital cushion protecting other senior lenders from loss of principal, leveraging Heron's investment.

Expected Returns at Time of Investment:

Social:

Heron's investment will support CRF to deploy capital to originate or purchase SBA 7(a) loans, and purchase community development and affordable housing loans, which will, in turn, help to create jobs and construct or rehabilitate affordable housing units for LMI citizens. 

Financial:

Interest payments of the 10-year term loan are reinvested over the life of the investment. Heron has the option to reinvest the accrued interest into a newly issued Community Reinvestment Note upon the loan’s maturity in 2017.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

National Federation of Community Development Credit Unions

Enterprise Type

Nonprofit

Heron Commitment

$1 million

Enterprise Profile

The National Federation of Community Development Credit Unions (the "Federation") promotes financial inclusion by organizing, supporting, and investing in community development credit unions (CDCUs), which specialize in serving populations with limited access to affordable financial services.

Vintage Year/Initial Investment
2006

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds of the investments by the Federation will be used to support capacity of providing innovative products to low and moderate income individuals, thereby supporting asset building and wealth creation.

Expected Returns at Time of Investment:

Social:

1. Improved capacity of low-income designated credit unions to provide below-market credit to their members.
2. Reduced administrative costs of managing deposits.
3. At least 80% of nominee deposits placed with institutions that originate home mortgage loans.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Meritus Ventures LP

Enterprise Type

Asset Manager

Heron Commitment

$500,000

Enterprise Profile

Meritus Ventures, L.P. ("Meritus") is a community development venture fund providing equity capital and technical assistance to small businesses in rural Appalachia.

Vintage Year/Initial Investment
2006
Website
Meritus Ventures

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Approved under the USDA’s Rural Business Investment Program (RBIP), Meritus will foster business growth through investments and technical assistance, creating jobs and attracting new businesses and capital to rural communities in the Appalachian regions of eight states and the entire area of three additional states. Meritus will invest in up to 20 companies, mostly expansion-stage, with revenues less than $3 million, primarily in the form of preferred convertible stock.  

Expected Returns at Time of Investment:

Social:

Meritus expects to create or maintain 1,800 new living-wage jobs by investing and leveraging additional debt and equity capital totaling more than $90 million in undercapitalized regions.

Financial:

As this is an equity PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

California Smart Growth Fund IV, LP

Enterprise Type

Asset Manager

Heron Commitment

$2 million

Enterprise Profile

Investing to positively impact communities that are traditionally underserved by real estate capital markets, or can benefit Californian communities by adhering to smart growth principles. Additional western states became eligible for investments later in the fund’s life.

Vintage Year/Initial Investment
2006
Website
California Smart Growth Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds will be used to invest in real estate (residential, retail, commercial and industrial) in underserved communities, with average investment sizes ranging from $5-$25MM. No more than 20% in any single real estate asset; not more than 35% in any single local market; not more than 50% in any single property type.

Expected Returns at Time of Investment:

Social:

1. Increased direct and indirect employment opportunities for residents.
2. Increased contracting, vending, procurement and leasing opportunities for community-based and minority-owned enterprises.
3. Increased tax collections for state and local governments.

Financial:

We expect a market-rate return commensurate with private equity funds.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

State Street Global Advisors

Enterprise Type

Asset Manager

Heron Commitment

Pending approval

Enterprise Profile

Pending Approval

Vintage Year/Initial Investment
2005

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Pending Approval

SJF Ventures II, LP

Enterprise Type

Asset Manager

Heron Commitment

$500,000

Enterprise Profile

SJF Ventures II, L.P. ("SJF II") is an impact venture fund sponsored by SJF Ventures. The venture fund is set up as a community development financial institution and will invest in companies throughout the U.S.

Vintage Year/Initial Investment
2004
Website
SJF Ventures

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

SJF II will invest in expansion-stage companies, at or near profitability, with revenues in the $500,000 to $20 million range. The fund will focus on business services, clean technology, and consumer products through primarily equity investments.

Expected Returns at Time of Investment:

Social:

SJF II will also primarily invest in companies with business models tied to specific social and environmental impacts. The fund manager of SJF II conducts an annual positive impacts survey of portfolio companies. Job creation and good employee median wage and benefits are expected. Within five years of launch, the SJF I portfolio held companies employing 1,600 people, of which 852 jobs were created following SJF’s investment, most of which were located in economically distressed areas.

Financial:

Market returns for community development venture capital (lower than for conventional venture capital) are expected and was classified as a PRI.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

DBL Bay Area Equity Fund I

Enterprise Type

Asset Manager

Heron Commitment

$1 million

Enterprise Profile

The Bay Area Family of Funds is a regional effort, developed by the Bay Area Council, to attract private capital into low and moderate-income neighborhoods through “double bottom line” (DBL) investing.

Vintage Year/Initial Investment
2003
Website
DBL Investors

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

DBL has stated in the private placement memo that the majority of funds will be used for investments of $3-5 million in mid- to late-stage companies that have or plan to have operations in the designated Bay Area lower-income communities. About 10% of the fund is designated for investments under $1 million to smaller, earlier-stage companies.

Expected Returns at Time of Investment:

Social:

The intended impact is to create local employment for lower-income residents of the designated neighborhoods. DBL has also highlighted the opportunity for job training and advancements, and wealth-creating benefits such as health care, child care, profit-sharing, savings plans and transit usage assistance as well as opportunities for woman- and minority-owned firms.

Financial:

We expect a market-rate return commensurate with private equity funds.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

The Southern Appalachian Fund, LP

Enterprise Type

Asset Manager

Heron Commitment

$400,000

Enterprise Profile

An SBA-designated, New Markets Venture Capital fund promoting economic development in Kentucky, Tennessee, and the Souther Appalachian region.

Vintage Year/Initial Investment
2003
Website
Southern Appalachian Fund

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds of the equity investments in the Southern Appalachian Fund will be used to make 25 - 30 equity investments in the Kentucky, Tennessee, and southern Appalachian region over ten years in small businesses in the early-stage, growth, expansion, and turn-around stages of development. Investments will average $250K, but not exceed $750K per portfolio company. The fund is required to invest 80% of funds in LMI communities, of which more than half is expected to go to rural communities. 

Expected Returns at Time of Investment:

Social:

1. 1,000 new jobs expected to be created.

2. Business growth and financial self-sufficiency fostered.

3. New businesses attracted to the region.

4. Additional capital leverage.

Financial:

As this is an equity PRI, we expect a reasonable below-market-rate return.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Yucaipa Corporate Initiatives Fund I, LP

Enterprise Type

Asset Manager

Heron Commitment

$2.5 million

Enterprise Profile

This fund is sponsored by The Yucaipa Companies and Johnson Development Corporation.

Vintage Year/Initial Investment
2003

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds of equity investments in the Yucaipa Corporate Initiative Fund I, L.P. ("Yucaipa I fund")  will be used to invest in a limited partnership fund that will coinvest/invest alongside Fortune 1000 companies looking to expand their "Diversity" outreach to help build Minority Business Enterprises of scale located in, serving or employing persons from underserved communities throughout the United States. Average investment sizes will range from $5MM-$10MM in transactions in the $10MM-$300MM range.

Expected Returns at Time of Investment:

Social:

1,500 new jobs to be created.

Financial:

Heron expects a market-rate return commensurate with private equity funds.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Penn Ventures Partners, LP

Enterprise Type

Asset Manager

Heron Commitment

$250,000

Enterprise Profile

A venture Capital fund to promote economic development by providing access to capital for promising companies in Central and Northern Pennsylvania.

Vintage Year/Initial Investment
2002
Website
Penn Venture Partners

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

Proceeds will be used to invest in early-, developmental, growth, expansion, and turn around stages.

Expected Returns at Time of Investment:

Social:

1) 4,485 jobs created and protected over 10 years.
2) 80% of investments will be made in SBA-defined LMI areas.

Financial:

Market returns for community development venture capital (lower than for conventional venture capital) are expected. This investment was classified as a PRI.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.

Community Capital Management, Inc.

Enterprise Type

Asset Manager

Heron Commitment

$25.7 million

Enterprise Profile

Founded in 1998, Community Capital Management (CCM) is a privately-held investment management firm headquartered in Weston, FL with offices in Boston, MA and Charlotte, NC. The firm’s mission is to deliver superior risk-adjusted returns through investment strategies that contribute to positive environmental and social outcomes, also known as impact investing. CCM manages over $2.3 billion in assets (as of 3/31/17) for foundations, religious organizations, pension funds, high net worth individuals, registered and unregistered funds, financial advisers and their clients, nonprofits and health organizations.

Vintage Year/Initial Investment
2001
Website
Community Capital Management

Disclaimer

*This website is intended for educational and informational purposes only. It does not constitute an offer or solicitation to sell any shares, securities or interests in anyentity. Heron makes no representations or warranties about the information set forth on this website or any of its investees and such information may not be relied upon by any person or entity. The information set forth on this website is not investment advice and should not form the basis of an investment decision. For purposes of clarity, Heron expressly disclaims any and all responsibility for any direct or consequential damages or losses of any kind arising directly or indirectly from (i) reliance on information contained on the website, (ii) any error, omission, or inaccuracy of such information and (iii) any action resulting therefrom.

Use of Funds:

CCM manages a mission-related fixed income portfolio for Heron. Funds are invested through a separate account vehicle into a portfolio of debt securities including agency mortgage-backed securities, taxable municipal bonds, small business administration pools / loans, USDA loans and other government-related securities. Each of the investments will fall into one of four broad mission focus areas: enterprise development, affordable homeownership, comprehensive community development, and affordable rental housing. 

Expected Returns at Time of Investment:

Social:

According to the private placement memo, CCM’s investments will provide social return commensurate with one of the four mission objectives (enterprise development, affordable homeownership, comprehensive community development, and affordable housing) but the portfolio allocation to each of these buckets will shift as market opportunities arise. 

Financial:

Heron expects to achieve a market-rate return in line with the Bloomberg Barclays Aggregate Index.

*There can be no assurances that such returns will be obtained. Heron makes no representations and warranties about this or any of its other investments and is not providing investment advice.