Reinvestment Fund Raises $70M in Bond Offering for Community Development
The InvestmentAccording to Impact Alpha, Philadelphia-headquartered Reinvestment Fund, a community development financial institution (CDFI), has tapped the public bond markets for $70 million. The funds will be used to support…
Executive Summary
Real-time Market IntelligenceThe InvestmentAccording to Impact Alpha, Philadelphia-headquartered Reinvestment Fund, a community development financial institution (CDFI), has tapped the public bond markets for $70 million.
The Investment
According to Impact Alpha, Philadelphia-headquartered Reinvestment Fund, a community development financial institution (CDFI), has tapped the public bond markets for $70 million. The funds will be used to support housing, education, and historically Black colleges and universities (HBCUs). This represents one of the first times a CDFI has accessed the public bond market.
About BC Partners
BC Partners is a leading private equity firm with over $35 billion in assets under management. Founded in 1986 and headquartered in London, the firm has a global presence and has invested in a diverse range of sectors, including healthcare, technology, and consumer. BC Partners is known for its active ownership approach, working closely with portfolio company management teams to drive growth and operational improvements.
The Investor
Reinvestment Fund is a non-profit CDFI that has been operating since 1985. The organization provides financing and technical assistance to support community development projects in underserved areas, with a focus on housing, education, healthcare, and small business. Reinvestment Fund has deployed over $2 billion in capital to date and has a strong track record of delivering measurable social and economic impact.
Market Context
The bond market issuance by a CDFI like Reinvestment Fund represents a significant development in the impact investing space. Traditionally, CDFIs have relied on grants, loans, and other forms of concessionary capital to fund their activities. By tapping the public bond markets, Reinvestment Fund is able to access a larger pool of capital and diversify its funding sources, which could enable the organization to scale its impact.
What This Signals
This move by Reinvestment Fund signals the growing maturity and sophistication of the impact investing market. As more CDFIs and other mission-driven organizations demonstrate their ability to access mainstream capital markets, it could pave the way for increased investment in underserved communities and drive greater social and environmental impact. Additionally, this transaction could inspire other CDFIs to explore similar bond issuances, further expanding the pool of capital available for community development initiatives.