First-of-its-kind multi-alternatives fund has
raised more than $800 million to date to invest in companies and
projects owned, led by, or serving Black, Latinx, and Native
American communities
Initial investors include Anthem, Costco
Wholesale, Johnson Controls, Lincoln Financial Group, PayPal, State
Farm, and W.K. Kellogg Foundation, demonstrating broad-based
institutional demand for differentiated investment opportunities in
undercapitalized communities
BlackRock has secured more than $800 million in initial
commitments toward its $1 billion target for the BlackRock Impact
Opportunities Fund. This new fund, the first multi-alternatives
strategy of its kind, is already beginning to invest in businesses
and projects owned, led by, or serving people of color, with a
particular focus on Black, Latinx, and Native American communities
in the United States.
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the full release here:
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Seated (L to R): Joseph Acevedo, Ladell
Robbins, Pam Chan, Douglas McNeely, Derrick Weatherspoon; Standing
(L to R): Haley Schaffer, Susie Qian, Brian Mwarania, Aarthi
Sowrirajan, Brian Grossman (Photo: BlackRock)
Edwin Conway, Global Head of BlackRock Alternative
Investors, commented, “Black, Latinx, and Native American
people face a number of systemic barriers in accessing the market
and acquiring the capital necessary to drive economic growth and
wealth creation in their communities. The BlackRock Impact
Opportunities Fund aspires to change the way institutional capital
flows to communities of color, and is just one step BlackRock is
taking with our clients and partners to address this significant
investment opportunity.”
Launched in 2021, this return-seeking fund looks to uncover
compelling investment opportunities in undercapitalized companies
and communities that are poised for growth. It takes a novel
approach to social impact by making direct investments across
private equity, private credit, infrastructure, real estate, and
other niche asset classes – using a wide range of tools seeking to
create collective wealth for the businesses and communities in
which it invests, and to generate returns for the fund’s investors.
The BlackRock Impact Opportunities Fund’s investments focus on
themes such as housing, financial inclusion, education, healthcare,
inclusive transition, and digital connectivity. To date, a broad
investor base including leading corporations, pension funds,
insurers, endowments, foundations, and family offices have
committed to the debut fund.
The fund is led by a dedicated and experienced team of diverse
portfolio managers that leverages BlackRock Alternative Investors’
$330 billion private markets platform, as well as the convening
power of BlackRock, to source and execute investment
opportunities.
Pam Chan, Chief Investment Officer and Global Head of
BlackRock’s Alternative Solutions Group, commented, “To create
collective wealth for these communities and our clients, we combine
our singular impact objective – to improve economic outcomes for
undercapitalized communities of color – with a flexible,
multi-alternative investment approach. In doing so, we seek to
deliver differentiated returns alongside impact and show that
investors can do well and do good.”
To date, the fund has evaluated a robust pipeline of
opportunities and completed three investments:
- In May 2022, the fund partnered with Eastwood Capital Partners,
a Black-owned sponsor, and Retro Fitness to invest in the
development of up to 70 fitness franchises in the Dallas, Houston,
and Southeast Florida areas. The investment seeks to make
affordable exercise, health and fitness more accessible to
communities of color to help address disparities in social
determinants of health. Moreover, most budget gyms in the U.S.
fitness industry are demonstrating a robust revenue rebound from
2020 and early 2021 pandemic-lows as pandemic-related restrictions
ease.1
- In February 2022, the fund partnered with BRP Companies, a
Black-owned and operated real estate firm with a majority-diverse
employee base, to invest in Arboretum, a to-be-built, 292-unit,
garden-style rental community located in Farmingville, New York, a
multifamily rental constrained market on Long Island. BRP has hired
several diverse-owned businesses as vendors on the project and
Basis Investment Group, a Black and female-owned commercial real
estate investment firm, is acting as the preferred equity investor.
This investment enables BRP Companies to expand its business beyond
its historical focus of developing urban housing and highlights its
strong capabilities and longstanding track record, which includes
being New York City’s third most active real estate developer in
2020.2
- In September 2021, the fund invested in Tricolor, a fintech
company with a majority-diverse employee base that leverages
proprietary AI-powered technology to sell and provide financing for
high-quality, affordable used vehicles to underserved Latinx
customers. The U.S. Latinx market is growing at 8.6 percent, faster
than China or India, and is equivalent to the eighth largest
economy in the world.3 Tricolor is headquartered in Dallas, Texas
and operates 50 dealerships across Arizona, California, Nevada, and
Texas. The company won the 2021 LendIt Fintech Industry Award for
Excellence in Financial Inclusion, and in April became the first
consumer auto finance issuer of a social bond. Tricolor is also
certified by the U.S. Treasury Department as a Community
Development Financial Institution (CDFI). CDFIs are institutions
focused on expanding economic opportunity in low-income communities
by providing access to financial products and services.
Douglas McNeely, Head of BlackRock’s Strategic Client
Coverage Group, commented, “BlackRock believes it is essential
that we collaborate with our clients and the broader financial
services industry to identify opportunities that drive real,
long-lasting impact in the communities that we serve. Through this
fund, we are harnessing the power of the BlackRock platform and the
active partnership of our clients to identify strong investment
opportunities that align with our clients’ and partners’
ethos.”
Aaron Anderson, Senior Vice President and Treasurer,
PayPal, commented, “It is through catalytic funds like these
that we can create pathways to economic opportunity for underserved
communities. Building an inclusive economy requires collective
action and we are proud to be joining BlackRock and this initial
group of investors to drive sustained economic growth and
equity.”
Jayson Bronchetti, Chief Investment Officer and Head of Risk,
Lincoln Financial Group, commented, “While we recognize that
the issues around racial inequity will not be solved overnight,
direct investments across private asset classes into
undercapitalized communities are an important step in the right
direction. Our partnership with the BlackRock Impact Opportunities
Fund aligns with our Responsible Investing efforts to help deliver
both differentiated returns and a measurable impact on
undercapitalized communities.”
Victor Terry, Chief Diversity Officer, State Farm®,
commented, “State Farm is committed to building safer, stronger,
and better educated communities. We foster a diverse and inclusive
culture within our company, throughout our communities and across
all organizations with which we partner. Investing in the BlackRock
Impact Opportunities Fund allows the chance for a connection to
help more people experience financial well-being. Our aspirations
align as we both continue to look for ways to invest in the future
and support our local communities.”
Carlos Rangel, Vice President and Chief Investment Officer,
W.K. Kellogg Foundation, commented, “The BlackRock Impact
Opportunities Fund is poised to have a tremendous impact on the
movement to advance racial equity in financial markets with its
influence and mission to get much needed capital to communities of
color. We learned from the Business Case for Racial Equity that the
U.S. stands to realize an increase in $2.7 trillion in GDP by
closing the racial equity gap; that number could increase to $8
trillion by 2050. We’re proud to support this bold effort to reap
those gains and to build on our long-standing relationship with
BlackRock.”
About BlackRock Alternative Investors
BlackRock Alternative Investors serves investors seeking
outperformance in real estate, infrastructure, private equity,
credit, hedge funds and alternative solutions. We strive to bring
our investors the highest quality investments by drawing upon our
global footprint, superior execution capabilities and position as a
preferred partner. BlackRock manages $330 billion in alternative
investments and commitments on behalf of clients worldwide as of
March 31, 2022.
Disclosures
This press release is for distribution in the United States only
and should not be distributed in any other markets or to any other
persons.
All financial investments involve an element of risk. Therefore,
the value of the investment and the income from it will vary and
the initial investment amount cannot be guaranteed.
This material is provided for informational purposes only and
does not constitute an offer to sell nor a solicitation to invest
in any jurisdiction in which such solicitation is unlawful or to
any person to whom it is unlawful. Moreover, it neither constitutes
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1 Fitch Ratings, 2021 2 The RealDeal, 2020 3 LDC U.S. Latino GDP
Report, 2020
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Christopher Beattie +1 646 231-8518
christopher.beattie@blackrock.com
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