Global bank Citi launched a $150m impact fund designed to make equity investments in private sector companies that have a positive impact on society.
The Impact Investing Fund will invest its own capital in U.S.-based companies that are applying innovative solutions to help address four societal challenges:
– Workforce Development – solutions that train and connect people to careers.
– Financial Capability – solutions that increase access to the financial system.
– Physical & Social Infrastructure – solutions that improve an individual’s way of life through housing, healthcare and transportation.
– Sustainability – solutions that address issues related to energy, water and sustainable production.
Investments, which could be as high as $10m, will primarily be made in companies that have demonstrated proof of concept, built an existing customer base, secured prior rounds of funding and exhibited the potential for scale in multiple markets.
A portion of the fund is designated for earlier stage seed investments. Citi will actively seek opportunities to invest in businesses that are led or owned by women and minority entrepreneurs. As part of that commitment, the seed funding will be allocated exclusively to investments in businesses led or owned by women and minorities.