Brown English Capital Advisors
Community Investments for Capital Markets
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The Community Investment Portfolio (CIP) is a debt portfolio of high quality community investments that earn market rates of return, while delivering measurable social impacts to low and moderate-income communities. The portfolio operates by partnering with Community Development Financial Institutions (CDFIs) to make senior investment loans on a variety of income producing properties.  The portfolio’s risk is mitigated  through the subordinate co-investment of CDFI financial partners.

Structure
The portfolio will be structured as a multiple investor debt fund that is meant to complement traditional fixed income or real estate investment programs.  Individual investments within the portfolio will include:

                                         i.        Mortgage Loan Participations

                                         ii.       Privately Placed Commercial Revenue Notes

                                         iii.      Collateralized Bridge Loans

The portfolio will focus on financing existing or recently completed, substantially leased multifamily apartment buildings, charter schools, retail and commercial properties and community facilities.  Credit will also be extended for the construction or substantial renovation of multifamily apartment building and charter school projects.  Forward fundings are permitted up to 18 months.

Exact portfolio allocation between each investment type will be an on-going function of relative value, spreads and availability in the market.  The portfolio has a target allocation of up to 80% loan participations, up to 20% community revenue notes, and up to 15% bridge loans.

Financial Return
Expected Returns: The portfolio seeks a market rate of return that is comparable to other investments of similar structure, risk, and term.  The targeted yield will vary with interest rates and credit spreads and general market conditions.

Social Return
Expected Returns: The portfolio seeks a measurable social return that is consistent with the investment types.  Social returns are measured by the number of affordable units created, the number of students eligible for free or reduced lunch, the numbers of jobs created or the projects construction in an eligible location, among other things.