Last week the $62 million Colorado Impact Fund officially launched at an event at the Colorado Governor’s home. As part of an initiative to invest more capital in local businesses, Jim Kelley of Vestar Capital Funds and Ryan Heckman of Excellere Partners came together to lead the creation of the new investment pool. In total the fund has 20 investors from around Colorado.
The Fund plans to invest in 10 to 15 companies over the next five years and will be announcing some of those initial investments within the next few months.
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Pictured above: The Colorado Impact Fund team
"From an investor's point of view, we do business all across the country, all across the globe for that matter," Kelley told the Denver Post. "We're not always as focused as we should be on, 'How can we contribute to the community we live in?'"
The Fund sees a lot of opportunity within local communities. It will give a special focus to “impact investing,” an investment strategy that not only focuses on turning a profit but also spurs positive local community building. According to the organization’s website, that means “Colorado-based companies that create attractive risk-adjusted returns while intentionally producing positive community outcomes.”
The double-bottom line of the Fund means there are two sets of investing criteria: positive impact and conventional investment criteria. Positive impact criteria means investments will be made in community health, natural resources conservation, education and workforce development, and economic development. The fund’s convectional investment criteria calls for the funds to be invested in companies that not only have a positive impact but also are a growth company of more than $2 million in sales, have a product or service beyond proof of concept, are scalable and need capital for growth.
The Fund is modeled on the Partnership Fund for New York City, an investment pool which claims to be behind the creation of tens of thousands of jobs within the city.
