California State Teachers鈥� Retirement System (CalSTRS) has invested $50m (鈧�43.2m) in SoLa Impact鈥檚 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鈥檚 black and brown communities.
The commitment from CalSTRS includes capital from the pension fund鈥檚 Real Estate and Sustainable Investment & Stewardship Strategies (SISS).
SoLa Impact said investors in the fund鈥檚 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鈥檚 premier private equity firms.
Martin Muoto, CEO of SoLa Impact, said: 鈥淲e are honoured to have CalSTRS anchor our second close with such a significant commitment.
鈥淲e 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.鈥�
Kirsty Jenkinson, CalSTRS鈥� SISS investment director, said: 鈥淥ur mission is to provide a secure retirement for California鈥檚 public educators and beneficiaries.
鈥淥ur 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.鈥�
Eliza Bailey, Belay Investment Group鈥檚 managing director, said: 鈥淎fter 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.
鈥淲hile their track record speaks for itself, we believe that SoLa is an organisation that helps prove that 鈥楧oing well by Doing good鈥� is a viable business model.
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