KeyBank Community Development Makes Strategic Investment in Arctaris to Expand Business Lending for Disadvantaged Communities Nationally
Arctaris Impact Fund, LP ("Fund"), the flagship debt fund of Arctaris Impact Investors, LLC ("Arctaris"), has obtained a new $10 million warehouse line of credit (LOC) with KeyBank Community Development Lending and Investment (CDLI) through its Community Development Financial Institutions (CDFI) Group.
KeyBank CDFI's LOC will help Arctaris bridge the timing between when investments are made, and Impact Notes are secured for long-term permanent financing. This LOC also enables speed in execution, capacity to grow the Fund, and the time Arctaris requires to source long-term capital. The Arctaris Impact Fund, LP received an A senior credit rating from Egan Jones, and the bonds were rated BBB.
The Fund makes loans that seek to create new jobs, bring diversity in small business ownership, and deliver economic empowerment of communities in need. Projects primarily consist of direct investments in small businesses, infrastructure, and affordable/workforce housing projects.
Jonathan Tower, Co-Founder and Managing Partner of Arctaris, is confident that KeyBank's commitment will help catalyze measurable economic, social, and environmental impact, stating: "KeyBank's strategic investment in Arctaris will amplify our capacity to grow strong, sustainable businesses in the nation's most underserved and underfunded communities."
"KeyBank is excited to help bring more capital to low-income and marginalized communities through its investment with the Arctaris Impact Fund," said Brian Maddox, National Team Leader for KeyBank Community Development Financial Institutions group. "Our $10 million investment is part of our National Community Benefits Plan commitment to increase access to capital and bring greater equity for low- and moderate-income clients throughout the KeyBank footprint".
The Fund utilizes "first-loss capital" ("FLC") commitments from philanthropic foundations and public-private partnerships to lower its blended cost of financing. These FLC commitments help catalyze investment in underserved communities ad provide diversification and risk mitigation for investors.
With more than 13 years of private credit investment experience, Arctaris has established a robust pipeline and active deal sourcing through its place-based investment programs. The Arctaris team focuses on identifying high-quality lending opportunities in disadvantaged and underinvested communities. Located in cities such as Baltimore, Cleveland, Erie (PA), and Pittsburgh, Fund investments often qualify for CRA credits.
About Arctaris Impact Investors
About KeyBank Community Development Lending and Investment
This press release ("Release") is not intended to be a solicitation or sale of any investment product or security, as well as qualified in its entirety by reference to the confidential Private Placement Memorandum of Arctaris Impact Fund, LP (the "Fund").
Statements in this release are made as of the date hereof unless stated otherwise, and neither the delivery of this release at any time nor any sale of the limited partnership interests described herein shall under any circumstances create an implication that the information contained herein is correct as of any time after such date. This release is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete.
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