Featured: Policy Corner
Investors look for Opportunity Zones to get an extension and a fresh dose of tax-advantaged capital. The shape of Republicans’ new tax bill is not yet known, but that’s not slowing Arctaris Impact Investors. The Boston-based fund manager is looking to close its fourth Opportunity Zones fund at $200 million this year on the assumption that President Donald Trump will work with Congress to extend the Opportunity Zones community economic development program – and its capital gains tax breaks – or make them permanent before the provisions sunset in 2025. Though not without critics, Opportunity Zones represent a rare chance for bipartisan cooperation. The program, originally part of Trump’s 2017 tax cuts, has mobilized as much as $84 billion from private equity investors looking for capital gains tax relief in exchange for investments in nearly 9,000 designated low-income census tracts. With Trump back in the White House, the program looks likely to be extended, and perhaps even improved for better transparency and impact. "We remain really optimistic that it’s going to get extended," Arctaris’ Patrick Mullen tells ImpactAlpha, "and that firms like ours will be really well-positioned to help shepherd that into the next generation."
Dealflow: Impact in Southeast Asia
Banyu nabs $1.3 million to boost Indonesian seaweed farmings. Indonesia is one of the largest producers of seaweed, a key source of nutrition that also absorbs carbon and nitrogen from water. Dominated by smallholder farmers, the country's seaweed industry provides income for more than 260,000 coastal households. “Many farmers struggle to rise above the poverty line due to systemic challenges,” such as price volatility, lack of market access, limited financing options and poor quality inputs, said Banyu’s Anis Nur Aini. The Jakarta-based startup trains seaweed farmers on managing seedlings and harvesting techniques to boost their yields. It provides better quality and more resilient seedlings, helps farmers improve income predictability, and links farmers to international and local buyers. Banyu oversees farming and production methods to ensure farmers meet environmental and food- and pharma-grade standards to help secure offtake agreements.
Impact Voices: Climate + Gender
Fund managers go beyond dealmaking to build the field of climate and gender investing. Political backlash against diversity initiatives and climate action is underscoring the importance of field-building, especially for combined climate and gender strategies that are only beginning to gain traction among investors. “Investors who step into their role as system-builders can magnify their impact, unlocking solutions that drive equity, resilience and sustainability on a global scale,” say Natalie Shriber and Sana Kapadia of Heading for Change, the donor-advised fund launched by Suzanne Biegel in 2023 to demonstrate the many ways gender fits into climate investment strategies. A number of Heading for Change’s dozen fund managers are now leaning into ecosystem building. “These funds are doing more than deploying capital,” Shriber and Kapadia write in a guest post on ImpactAlpha. “They’re shaping environments where their investments can succeed and building the market for sustained change in the longer term.”
Agents of Impact: Follow the Talent
Summa Equity's Andrew Marino is named board chair at Calvert Impact, succeeding Bart Harvey… Regina Ross, previously with Khan Academy, joins Opportunity Finance Network as executive vice president and chief people and culture officer. Damon Smith, formerly with the US Department of Housing and Urban Development, joins OFN as executive vice president and general counsel… PJ Jannuzzi, previously with Blackstone, joins Vision Ridge Partners as managing director and head of asset management.