Expanding and Diversifying our Capital Base

By Carolyn Bauer, Chief Risk Officer

Capital Impact Partners graphic depicting unrestricted net assets growthDriven by another year of strong lending, Capital Impact ended 2015 with a solid financial position. The organization’s overall portfolio increased by $22 million or 11 percent. This growth was matched with continued strong credit performance, as our delinquency rate was just 0.4 percent. Once again, our focus on financial strength and social impact was rewarded with AERIS’ highest possible rating of AAA+1. This honor pleases us greatly.

AERIS logoTop-line revenue continued to grow as well. Net income rose by $11 million—a year-over-year increase of 213 percent. Net assets saw an expected decline as a result of launching our Green House and Cornerstone Partnership programs and the accompanied grant revenue that was used to fund those activities.

Now, as we begin to implement our 2020 Strategy, we will continue efforts to strengthen our financial position by bringing our lending more on balance sheet, actively managing expenses and implementing capitalization strategies to improve margins.

Our 2020 Vision for Communities

We will continue to develop and diversify our capital base by building on our Federal Home Loan Bank of Atlanta membership to scale access to flexible capital. Also, we will explore ways to attract impact investors as a means to bolster our social impact while allowing for the ability to provide relevant returns to investors.

We have seen incredible success with these types of programs that raise capital for international projects. And, we intend to harness that same interest domestically as a means of creating access to the critical services that underserved communities need to thrive. Ultimately, we believe these efforts will help us in expanding our reach and impact by 2020.

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