April 7, 2022
2022 Impact Fund Listing Recognizes Deep Impact and Innovative Managers Across the Globe
BETHESDA, Md. – April 12, 2022—SDS Capital Group (SDS) has been named to the ImpactAssets 50 (IA 50) Global Impact Fund list for the fifth consecutive year, announced Deborah La Franchi, Founder & CEO, SDS Capital Group. ImpactAssets 50 is the international impact investing industry’s leading database of private capital fund managers.
The eleventh edition of the IA50 also includes the IA 50 Emerging Impact Managers list and IA 50 Emeritus Impact Managers list. Across all three categories, 143 impact fund managers reported assets totaling $116.96 billion invested in a range of asset classes and impact themes.
SDS was among the fifteen managers selected in this year’s showcase that reported assets exceeding $1 billion. An additional ten impact fund managers had assets under management between $500 million and $1 billion.
“It is an honor to be selected by ImpactAssets 50 for the fifth year,” said La Franchi. “When SDS was launched in 2001, there was virtually no investor base for our impact funds. It is rewarding to see impact investing’s heightened visibility among institutional investors today.”
The IA 50 selection process for their international impact manager list has become much more competitive over the past few years.
“The caliber of this year’s IA 50 lists is a product of the rigorous application scoring and analysis process that the IA 50 Review Committee has fine-tuned through the years,” added Sandra Kartt, CFA, Managing Director, Investments, ImpactAssets. “We’re thrilled to foster the continuing growth of these unique, innovative investing approaches addressing critical issues from climate to racial equity and gender equality.”
SDS Capital Group was selected for the IA 50 2022 class based on their commitment to meaningful impact, diversity of communities in which investments are made, diversity of staff, and strong track record of delivering market or above market rates of return.
In addition to being a pioneer in impact investing, SDS Capital Group is noteworthy as a 100% woman-owned private equity real estate firm. According to private capital advisory firm Bella Research Group, just $3 of every $1,000 of assets under management in real estate funds is managed by a woman-owned firm.
SDS currently manages over $1 billion in impact assets under management. The firm’s 90 investments have helped generate more than 24,800 jobs and nearly 3,650 units of affordable and workforce housing in underserved communities with an average poverty rate of 31%. The urban communities where SDS has made investments have an average minority population of 65%.
“Over the next five years, we’re on track to attain the same level of investment and impact that we achieved over the previous 20 years,” added Ms. La Franchi. “The growth of SDS’s existing and trailblazing new funds will accelerate our funding timeline and help us to undertake a pivotal role in the transformation of a growing number of our country’s poorest communities.”
SDS launched its groundbreaking SDS Supportive Housing Fund (SHF or Fund) in 2020. This first-of-its-kind private equity fund finances permanent supportive housing for Californians experiencing homelessness. Fully capitalized at $150 million, SHF will provide funding for 1,800 housing units. The SHF fund has invested in seven projects to date—six of which are currently under construction). SHF typically serves as the sole source of capital for the developments they finance which have a per-unit cost of approximately $200,000 (less than half the typical market cost). SHF developments do not require taxpayer subsidies for land acquisition or construction. In addition to quality permanent supportive housing, the Fund’s projects offer tenants case management services. SDS’ innovative private equity financing model for permanent supportive housing has been the subject of recent articles in the Los Angeles Business Journal and the Los Angeles Times.
The ImpactAssets Investment team led by Kartt conducted the application scoring and analysis process and collaborated with Align Impact on fund analysis.
See SDS’s IA 50 2022 profile here.
Founded in 2001 by Deborah La Franchi, SDS Capital Group manages a platform of impact investment funds – each with a distinct geography and investment strategy. Every investment SDS makes is driven by the core mission of achieving financial returns while deploying capital in a manner that helps transform underserved communities – alleviating poverty and promoting economic prosperity. SDS has been recognized for the past five years by ‘ImpactAssets 50’ as one of the top impact managers globally. With six funds and finance products on its platform, SDS currently has over $1 billion in impact assets under management. For more information, visit www.sdsgroup.com.
The IA 50 is the first publicly available database that provides a gateway into the world of impact investing for investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore the landscape of potential investment options. The IA 50 is intended to illustrate the breadth of impact investment fund managers operating today, though it is not a comprehensive list. Firms have been selected to demonstrate a wide range of impact investing activities across geographies, sectors and asset classes.
The IA 50 is not an index or investable platform and does not constitute an offering or recommend specific products. It is not a replacement for due diligence. To be considered for the IA 50 2022, fund managers needed to have at least $25 million in assets under management, more than three years of experience as a firm with impact investing, documented social and/or environmental impact and be available for US investment. Additional details on the selection process are available here.
The IA 50 Emerging Impact Managers list is intended to spotlight newer fund managers to watch that demonstrate potential to create meaningful impact. Criteria such as minimum track record or minimum assets under management may not be applicable.
The IA 50 Emeritus Impact Managers list illuminates impact fund managers who have achieved consistent recognition on the IA 50.
ImpactAssets is an impact investing trailblazer, dedicated to changing the trajectory of our planet’s future and improving the lives of all people. As a leading impact investing firm, we offer deep strategic expertise to help our clients define and execute on their impact goals. Founded in 2010, ImpactAssets increases flows of money to impact investing in partnership with our clients through our impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers. ImpactAssets has more than $2 billion in assets in 1,700 donor advised fund accounts, working with purpose-driven individuals and their wealth managers, family offices, foundations and corporations. ImpactAssets is an independent 501(c)(3) organization.
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