A Look Inside...
In this issue of Community Developments Investments, we explore community development venture capital (CDVC) funds, a relatively new investment option that might have a place in your bank’s future. As Kerwin Tesdell, president of the Community Development Venture Capital Alliance explains in his overview of the industry, CDVC funds provide equity financing to growing businesses in underserved communities, as well as market-rate financial returns for their investors. Often these investments receive positive consideration in a bank’s Community Reinvestment Act (CRA) examination.
Also in this issue, Wells Fargo Vice President and Team Leader Lee Winslett highlights how his bank evaluates the risks and reward of investing in CDVC funds and shares the story of his bank’s investments funds in California, New Mexico, and Montana. We learn how community development venture fund managers earn competitive returns while pursing a second set of social bottom line objectives in Ray Moncrief’s article on running a 30-year-old CDVC that invests in rural Appalachia. Mr. Moncrief is the chief operating officer for Kentucky Highlands Investment Corporation. Finally, to help you evaluate the investment methods and their potential risks, Fred Mendez, director of community reinvestment at Silicon Valley Bank, shares 10 tips for vetting a CDVC investment.
Full story...
|
_r1_c1.gif)
_r1_c2.gif)
_r2_c1.gif)
_r3_c1.gif)
