Community Foundation’s GoATL Fund Invests $1M for Diverse Solutions
Friday, January 11th, 2019
GoATL Fund (GoATL), an impact investment fund launched by the Community Foundation for Greater Atlanta, recently closed a new $1 million investment to Reinvestment Fund to support a diverse portfolio of impactful investments throughout metro Atlanta. Focused primarily on low-income neighborhoods with historically deprived levels of investment, GoATL’s investment will provide Reinvestment Fund with locally-sourced, flexible capital that will support initiatives in education, food access, the arts and affordable housing.
During 2018, the GoATL Fund, the first impact investment fund of its kind in Georgia, invested $3.25 million in loans that seek to generate a measurable social outcome along with a financial return. Unlike traditional philanthropy that typically relies on grants, GoATL’s impact investments are structured as flexible, cost-effective loans that are expected to be paid back, thus recycling the dollars to consistently fund new initiatives into the future. Having just wrapped up a successful first year, GoATL’s investments are supporting affordable housing, school renovations, community centers, low income entrepeneurs, energy efficiency improvements and more.
Since 2014, Reinvestment Fund has invested $30 million throughout greater Atlanta, creating or preserving 200 early childhood education slots, supporting over 1,000 jobs and creating or preserving nearly 300 housing units. GoATL’s investment provides Reinvestment Fund with both cost-effective capital to accelerate their work as well as a connection to a valuable local partner with deep roots in the community.
“Our investment will allow Reinvestment Fund to expand local financing options for community centers, grocery stores, health centers, schools and more throughout the Atlanta metro area,” said Mark Crosswell, managing director of social impact strategy for the Community Foundation. “In terms of both geography and impact areas of concern, Reinvestment Fund’s work here aligns very closely with GoATL’s investment goals to support more sustainable and scalable solutions for communities in need.”
The GoATL Fund invests flexible debt in initiatives that address the Community Foundation’s five Impact Areas: Arts, Community Development, Education, Nonprofit Effefectiveness and Well-being. To create efficiencies and leverage even more capital, GoATL often partners with intermediaries like Reinvestment Fund, and other Community Development Financial Institutions (CFDIs), that have the knowledge and expertise to effectively structure loan capital to support solutions addressing critical needs in our region.
“GoATL’s support for Reinvestment Fund’s local capacity will allow us and our partners to expand lending practices in the Atlanta metro area,” said Christina Szczepanski, managing director for the Southeast with Reinvestment Fund. “We are excited to work with such a well-respected local partner as the Community Foundation and the GoATL Fund which we hope will also inspire others to invest in our work locally.”
In addition to financial investments, Reinvestment Fund also provides policy and analytical expertise to community development professionals and policy makers around the state.