California State Teachers’ Retirement System (CalSTRS) has invested $50m (€43.2m) in SoLa Impact’s fourth US social impact real estate fund as an anchor investor.
The $311bn pension fund, through its partnership with Belay Investment Group, has taken part in a $250m fundraise for the Black Impact Fund which seeks to raise $300m to invest in affordable and workforce housing development in California’s black and brown communities.
The commitment from CalSTRS includes capital from the pension fund’s Real Estate and Sustainable Investment & Stewardship Strategies (SISS).
SoLa Impact said investors in the fund’s second close include PayPal Holdings, Equitable Insurance, the Skoll Foundation, Ally Bank, Potenza Capital, Pacific Premier Bank, Adirondack Capital, and senior partners of some of the nation’s premier private equity firms.
Martin Muoto, CEO of SoLa Impact, said: “We are honoured to have CalSTRS anchor our second close with such a significant commitment.
“We looked for a mission-aligned investor that operates in a true partnership with emerging managers, has an appreciation for the diversity of our team, and has deep experience in institutional investing. CalSTRS and Belay are a perfect fit for SoLa Impact.”
Kirsty Jenkinson, CalSTRS’ SISS investment director, said: “Our mission is to provide a secure retirement for California’s public educators and beneficiaries.
“Our dedicated portfolio seeks to achieve superior financial returns while creating demonstrable social and environmental outcomes. The investment with SoLa Impact is our first real estate investment within SISS and aligns with our goals.”
Eliza Bailey, Belay Investment Group’s managing director, said: “After extensive due diligence, Belay has been impressed with the senior team at SoLa Impact, their thoughtful, disciplined approach to building their platform, and with the positive change they continue to affect in Los Angeles through their affordable housing investment strategy and related social programming.
“While their track record speaks for itself, we believe that SoLa is an organisation that helps prove that ‘Doing well by Doing good’ is a viable business model.
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