It is our pleasure to report to you on the sixth year of operations for the Living Cities Catalyst Fund. As of June 30, 2014, the Fund had commitments of $34.6 million from ten investors. Since inception, our total cumulative lending of $40.2 million has sparked initiatives with total funding of over $825 million.
In recognition of our work and our engagement with the social impact field, we also are delighted to report that the Catalyst Fund was selected for the fourth straight year for the ImpactAssets 50 – a public database of private debt and equity fund managers that deliver social and environmental value in addition to financial returns showcasing a combined $15 billion in impact funders.
Other key developments of the fiscal year from July 2013 through June 2014 included:
New Investments: In the year ending June 30, 2014, we closed three additional investments, including our first two Pay for Success (PFS) transactions. We invested $1.5 million in the Massachusetts Juvenile Justice PFS project with Roca as the service provider and $509,000 in the New York State Workforce Re-Entry PFS project with Center for Employment Opportunities (CEO) as the service provider. We closed a $3 million loan to the New Jersey Community Loan Fund, our final loan in the first round of Living Cities’ signature Integration Initiative. In addition, after the close of the fiscal year, we closed two additional transactions – a $1.5 million increase to Capital Impact Partners to support the Detroit Integration Initiative and a $4 million loan to the Craft3 Capital Corporation to provide capital to small businesses that were bankable in the past but cannot find conventional financing in the current economic climate.
Increased Deployment: Over the past year, we have deployed an additional $5.1 million of cash to bring the total outstanding balance to $13.0 million. We expect to continue to see higher utilization rates from our outstanding loans. In addition, we have had additional disbursements since June 30, 2014 with $2.4 million in draws from the Catalyst Fund to borrowers.
Loan Repayments and Cancellations: Our oldest loans on our books are beginning to repay. In fiscal year 2014, Living Cities received $5.6 million in repayments. The Neighborhood Stabilization Loan Fund (NSLF) repaid their loan in full and the Reinvestment Fund (TRF) made a partial repayment on the original loan in September
- Craft3’s ground-breaking secondary market sale of its energy-efficiency loan portfolio was finalized in December 2013, and Craft3 repaid their $4 million loan in full. The Greater University Circle Capital Corporation (GUCC) canceled their $3 million Cleveland Integration Initiative Catalyst Fund facility in November 2013 because Cleveland elected to continue its work without support from Living Cities.
To view an Investor Summary and Portfolio Review, please download the full report.