Return on Inclusion | May 12, 2022

BlackRock raises an $800 million impact fund to invest in communities of color

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, May 12 — BlackRock’s $330 billion alternatives investment group aims to raise $1 billion to invest in housing, financial services, education and healthcare in underserved communities of color with potential for growth.

So far, the asset manager has raised $800 million for the BlackRock Impact Opportunities fund, which will invest in companies and projects, led by, or serving people of color, especially Black, Latinx and Native Americans.

The fund will take a “flexible, multi-alternatives approach” to meet impact objectives and financial targets, said BlackRock’s Pam Chan. “In doing so, we seek to deliver differentiated returns alongside impact and show that investors can do well and do good.”

Costco, Lincoln Financial Group, PayPal, State Farm, W.K. Kellogg Foundation, Anthem and HVAC company Johnson Controls invested in the fund. Other investors include pension funds, endowments and family offices.

The BlackRock fund has made three investments to date, including in Dallas-based CDFI Tricolor to sell and provide financing for used vehicles to underserved Latinx customers.