KeyBank Community Development Lending and Investment provides LoC to Arctaris Impact Investors towards economic empowerment to underserved communities
Arctaris Impact Fund, LP ("Fund"), the flagship debt fund of Arctaris Impact Investors, LLC ("Arctaris"), has secured a new $10 million warehouse line of credit (LOC) with KeyBank Community Development Lending and Investment (CDLI) Group.
The LOC from KeyBank CDFI will assist Arctaris in bridging the gap between when investments are made and Impact Notes are secured for long-term permanent financing. This LOC also allows for faster execution, increased Fund capacity, and the time Arctaris needs to source long-term capital. Egan Jones assigned an A senior credit rating to the Arctaris Impact Fund, LP and a BBB rating to the bonds.
The Fund makes loans to create new jobs, diversify small business ownership, and provide economic empowerment to underserved communities. The majority of the projects are direct investments in small businesses, infrastructure, and affordable/workforce housing.
Arctaris Co-Founder and Managing Partner Jonathan Tower believes KeyBank's commitment will help catalyze measurable economic, social, and environmental impact. Saying, “KeyBank’s strategic investment in Arctaris will amplify our capacity to grow strong, sustainable businesses in the nation’s most underserved and underfunded communities.”
“KeyBank is excited to help bring more capital to low-income and marginalized communities through its investment with the Arctaris Impact Fund,” said Brian Maddox, National Team Leader for KeyBank Community Development Financial Institutions group.
“Our $10 million investment is part of our National Community Benefits Plan commitment to increase access to capital and bring greater equity for low- and moderate-income clients throughout the KeyBank footprint”.
To reduce its blended cost of financing, the Fund uses "first-loss capital" ("FLC") commitments from philanthropic foundations and public-private partnerships. These FLC commitments help to catalyze investment in underserved communities while also providing investors with diversification and risk mitigation.
Arctaris has over 13 years of private credit investment experience and has built a strong pipeline and active deal sourcing through its place-based investment programs. The Arctaris team is dedicated to identifying high-quality lending opportunities in underserved communities. Fund investments in cities such as Baltimore, Cleveland, Erie (PA), and Pittsburgh frequently qualify for CRA credits.
The LOC from KeyBank CDFI will assist Arctaris in bridging the gap between when investments are made and Impact Notes are secured for long-term permanent financing. This LOC also allows for faster execution, increased Fund capacity, and the time Arctaris needs to source long-term capital. Egan Jones assigned an A senior credit rating to the Arctaris Impact Fund, LP and a BBB rating to the bonds.
The Fund makes loans to create new jobs, diversify small business ownership, and provide economic empowerment to underserved communities. The majority of the projects are direct investments in small businesses, infrastructure, and affordable/workforce housing.
Arctaris Co-Founder and Managing Partner Jonathan Tower believes KeyBank's commitment will help catalyze measurable economic, social, and environmental impact. Saying, “KeyBank’s strategic investment in Arctaris will amplify our capacity to grow strong, sustainable businesses in the nation’s most underserved and underfunded communities.”
“KeyBank is excited to help bring more capital to low-income and marginalized communities through its investment with the Arctaris Impact Fund,” said Brian Maddox, National Team Leader for KeyBank Community Development Financial Institutions group.
“Our $10 million investment is part of our National Community Benefits Plan commitment to increase access to capital and bring greater equity for low- and moderate-income clients throughout the KeyBank footprint”.
To reduce its blended cost of financing, the Fund uses "first-loss capital" ("FLC") commitments from philanthropic foundations and public-private partnerships. These FLC commitments help to catalyze investment in underserved communities while also providing investors with diversification and risk mitigation.
Arctaris has over 13 years of private credit investment experience and has built a strong pipeline and active deal sourcing through its place-based investment programs. The Arctaris team is dedicated to identifying high-quality lending opportunities in underserved communities. Fund investments in cities such as Baltimore, Cleveland, Erie (PA), and Pittsburgh frequently qualify for CRA credits.
Companies