Kansas City, MO (December 8, 2020) – equity2, a Kansas City-based impact investment firm, announced today they received a $1 million investment from The Sunderland Foundation. The investment will anchor the equity2 Impact Fund, the region’s only 100% Kansas City-focused, impact-oriented opportunity zone fund.
“The launch of this new fund could not be more timely. Now more than ever it is important that we invest hometown capital in innovative ways to accelerate financing for underserved businesses,” said Randy Vance, President and Chief Operating Officer of The Sunderland Foundation. “How and where we invest has significant implications on our community. equity2 is helping build real equity by investing in minority and women-owned businesses. We know this investment is going to create a stronger and more inclusive regional economy.”
The Fund builds on a strong track record of deploying capital in distressed communities. AltCap, the firm’s parent organization and Kansas City-based Community Development Financial Institution (CDFI), is committed to increasing the flow of capital to businesses and communities not adequately served by mainstream financial institutions. Over the past 15 years, AltCap has deployed $250 million in New Markets Tax Credits and $21 million in small business financing while maintaining a default rate of less than 3 percent.
The Fund’s double-bottom-line approach builds on this strategy of driving financial returns for investors while creating measurable community impact. Fund investments will include community-focused real estate projects that revitalize neighborhoods and address affordable housing needs, and purpose-driven operating businesses creating quality, sought-after and accessible jobs.
By leading this investment round, The Sunderland Foundation demonstrates a new path forward for local investors. “This really is one of those unique situations where investors can achieve both the personal financial benefits of a traditional investment, as well as the broader community benefits typically associated with philanthropy,” said Emily Lecuyer, Managing Director of equity2. “We’re excited to work with such a strong institution and to onboard additional partners to make a meaningful and sustained impact in our community.”
The equity2 Impact Fund is open to accredited investors. It accepts, but is not limited to, qualifying capital gains for opportunity zone tax benefits.
By combining market mechanics and good public policy, opportunity zones can create positive social and economic impact while providing attractive returns alongside substantial tax advantages. In response to COVID-19, the IRS has significantly extended the window for placing gains into qualified opportunity zone funds like the equity2 Impact Fund. Investors who are sitting on realized gains now have through the end of the year to invest those funds in a qualified fund.
Become an impact investor today. Contact us at [email protected] or 816.305.4767 for more information.
equity2 LLC is a mission driven impact investment firm committed to deploying capital in inclusive and equitable ways. Formed by AltCap in 2019, equity2 is building on a strong track record of deploying capital in Kansas City’s distressed communities.
AltCap is a community development financial institution (CDFI) that invests in underestimated communities throughout the Kansas City metro. We deploy capital through innovative financing products, targeted small business and economic development programming, and partnerships that help build an inclusive ecosystem of entrepreneurship. Since 2005, AltCap has delivered over $250 million in New Markets Tax Credits and $21 million in small business financing to community-focused real estate development projects and to entrepreneurs who have been left out of the financial mainstream.
About the Sunderland Foundation
The Sunderland Foundation was established in 1945 by Lester T. Sunderland, who served as president of the Ash Grove Cement Company for 33 years. Grants made by the foundation support construction and renovation projects in higher education, health care, youth-serving organizations, and civic and cultural areas of interest. By supporting these types of construction and special interest projects, the Sunderland Foundation fosters a stronger, safer and more vibrant future for the communities we serve. The foundation also makes program-related investments that compliment or enhance its mission.
Managing Director, equity2
Director of Impact Investments, AltCap