Annaly, Capital Impact launch $25 million social impact joint venture

By Sarah Lizee

Olympia, Wash., Nov. 2 – Annaly Capital Management, Inc. and Capital Impact Partners launched a new $25 million joint venture dedicated to supporting community development in underserved cities across the country, according to a Wednesday press release.

The collaboration provides direct financing for socially responsible projects in low-income communities while simultaneously enabling Capital Impact’s ability to further expand its work nationally, the release said.

Annaly and Capital Impact created the joint venture to invest in loans that are cash flow generating, seasoned assets currently owned by Capital Impact. The investments targeted for the venture represent a mix of projects within the social impact investing landscape which span communities across the country.

The venture intends to make investments over a five-year period and Annaly and Capital Impact have the option to increase their overall investment as the venture matures.

“We are pleased to announce this unique joint venture that enables Annaly to further our involvement in community development and social responsibility efforts while continuing to diversify the sources of our returns for shareholders” Kevin Keyes, Annaly’s chief executive officer and president, said in the release.

“Combining Annaly’s permanent capital with the expertise and 30-year track record of Capital Impact Partners helps further the mission of strengthening the links between health, education and housing in underserved communities.

“This joint venture also continues our growth strategy of partnering with best-in-class industry leaders enhancing cost efficiencies and returns across our diversified investment platform.”

“This represents the first time Capital Impact has raised equity through a joint venture as a means to expand our social impact. We are excited to work with Annaly to launch this project,” Ellis Carr, chief executive officer and president of Capital Impact, added.

“As a mission-driven organization, it is critical we have the ability to be nimble in meeting the needs of communities. Only by working with forward-thinking partners like Annaly, can we continue to ensure equitable access to capital for projects serving low-income communities.”

Annaly is a New York-based real estate investment trust that invests in and finances residential and commercial assets. Capital Impact is an Arlington, Va.-based non-profit that provides credit and financial services to underserved markets and populations in the United States.

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