Investment Style & Strategy
Debt & Equity
Local Initiatives Support Corp. (“LISC”) is the largest community development finance institution (“CDFI”) in the U.S. Their subsidiary New Markets Support Company (“NMSC”) uses new markets tax credit financing for business and commercial real estate projects in underserved communities. To complement these efforts, NMSC has launched the Good Jobs Fund. Good Jobs has anchor investors and is seeking additional commitments for its first close of $5 million.
Good Jobs will invest mezzanine debt in small businesses with high growth potential. The Fund will also provide equity for ownership transitions. In both cases, the Fund seeks to partner with businesses creating quality jobs in under-invested communities.
Return Intention – Good Jobs will be focused on transactions in geographic areas designated for New Markets Tax Credits. The fund also has a mandate to achieve impact even at the cost of throttling returns back if necessary. For these reasons, the fund is considered a return optimizing fund.
Impact Intention – LISC/NMSC have a specific mission to provide capital that would not otherwise be provided. Further they seek to stimulate other investors to invest in under-served areas. In many ways LISC/NMSC is one of the pioneers of the catalytic capital strategy.
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The stated mission of the Fund is “Bringing growth and transition capital to small businesses committed to providing quality jobs in underinvested communities.
Good Jobs is limited to investing in U.S. zip codes that have been designated as eligible for New Markets Tax Credits. At some point this may be expanded to include the recently created Opportunity Zones.
Structure and Terms
The team indicates that they are not actively raising capital. However, it appears that once the initial seed capital in the pilot fund is deployed and the team more filled-out, NMCS will begin a more aggressive raise for a $25 million Fund II. The Pilot fund is focused on new markets eligible deals. Fund II is expected to be a traditional fund with a subset being new markets eligible.
The longer term goal is to raise a Fund III that would be fully staffed and apply for SBIC status and leverage.
168 North Clinton Street
Chicago, Illinois 60661
IMPORTANT DISCLAIMER - This information was provided by Fund Manager on a non-confidential basis or from public sources. While it is believed to be reliable at the time of publication, Mandorla has NOT validated any of the information and makes NO REPRESENTATION OR WARRANTY as to accuracy.