Creating New Investment Vehicles
Living Cities creates new social investment vehicles to make it easier for institutions and individuals to invest creatively and effectively in organizations and programs that improve the quality of life for low-income urban residents and the communities in which they live. The first of these investment vehicles is the Living Cities Catalyst Fund, which aggregates patient, flexible capital to provide below-market-rate loans and guarantees.
Living Cities Catalyst Fund
The Catalyst Fund primarily focuses on improving public education; creating opportunities to build income, wealth and financial stability; promoting health and wellness; and revitalizing distressed neighborhoods. Investors in the Catalyst Fund make a 10-year commitment and choose an annual interest rate of up to 3 percent. To date, the Catalyst Fund has gathered more than $20 million in commitments. Investing in the fund is open to outside individuals and companies, as well as Living Cities members. Living Cities is currently planning additional investment vehicles with more specialized geographic and programmatic targets.