Investee Profiles

 

Show Investments:

November 16, 2017

Ownership Capital

Enterprise Type

Delaware Limited Partnership

Heron Commitment

$10 million

Enterprise Profile

The Fund is managed by Amsterdam based Ownership Capital, a fundamental, long-term public equity manager that combines active engagement with ESG integration to achieve superior returns.

Vintage Year/Initial Investment
2017
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.

Use of Funds:

The Fund uses an approach called Ownership Investing which is founded upon rigorous, hands-on research executed by an experienced team of specialized investment professionals. The management team will engage each portfolio company of global small to large capitalization companies to enhance their operational and sustainability practices.

Expected Returns at Time of Investment:

Social:

Material social and environmental policy and practice changes amongst targeted public companies.  

Financial:

Heron expects a market-rate return commensurate with public equity funds benchmarked to global indices.

 

*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 IV

Enterprise Type

Asset Manager

Heron Commitment

$3 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
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.

Use of Funds:

Proceeds will be used to support growth in a portfolio of geographically diverse early stage private enterprises in the U.S.

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.

Greenline Ventures

Enterprise Type

Asset Manager/Intermediary

Heron Commitment

$2 million

Enterprise Profile

Greenline Ventures LLC (“Greenline”) is an employee-owned investment management firm that specializes in delivering capital to businesses and communities that are underserved by traditional capital providers. Greenline provides debt and/or equity capital for projects and operating businesses that are capable of generating strong risk-adjusted returns for its investors as well as a positive impact on the local communities. To date, Greenline has invested over $2 billion in low-income communities nationwide.

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.

Use of Funds:

Debt capital towards a new markets tax credit-enhanced fund that provides subordinate and mezzanine loans between $250,000 to $2 million for small businesses that create positive social and economic outcomes in their communities.  The inclusion of new markets tax credit capital enables the fund to provide loans at below-market rates with flexible terms.  By structuring the loans in a subordinate position, the fund leverages additional market-rate capital from community banks, credit unions and other lenders.

Expected Returns at Time of Investment:

Social:

100% of the fund is designated for loans to small business located in low-income communities. Loans will focus on businesses that create meaningful jobs for low-income residents as well as training programs, financial counseling, enhanced employee benefits packages, minority and women-ownership, and reductions in environmental impacts.

Financial:

As this is a debt PRI, we expect a reasonable below-market-rate return with 5.5% annual net interest income.

 

*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.

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.

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.

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.

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.

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.

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 equivalent 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.

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

$500,000

Enterprise Profile

Pacific Community Ventures, LLC provides capital and resources to high growth California businesses that bring significant economic gains to low-to-moderate income employees as well as exceptional financial returns to business owners and investors.

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.

Use of Funds:

PCV III will provide growth capital to growing companies in California, particularly those with revenues from $5-$30 million. PCV III has targeted specific sectors, including branded food products and distribution, value-added manufacturing, business services, and specialty consumer products. Companies may either be located in low and medium-income (LMI) communities or employ predominately LMI employees.

Expected Returns at Time of Investment:

Social:

PCV III expects to support 340 new living-wage jobs at the time of investment in the firms (which should expand considerably over time) and, based on prior funds’ performance, PCV III’s $45 million should leverage additional debt and equity capital totaling more than $400 million for these portfolio companies.

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.

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.