Impact Investments - Gates Family Foundation
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IMPACT INVESTMENTS FOR SOCIAL AND MISSION-RELATED IMPACT

The Gates Family Foundation takes a holistic view of the management and deployment of our assets and engages in multiple forms of investing to balance our perpetual mandate with opportunities to maximize our impact and grow the percentage of our assets that are aligned with our mission.

As of 2023, Gates Family Foundation committed more than $69 million in impact investments since we began making mission-aligned investments in 2014 and impact investment commitments currently account for 12 percent of our endowment.

Our impact investments take three different forms:

Mission-Related Investments

Mission-related investments (MRIs) commit a portion of the Foundation’s endowment capital into investments with double-bottom line return expectations of impact returns alongside market-rate financial returns. The Foundation selects MRI investments that meet financial, market, and risk criteria in addition impact objectives and typically invests in private equity strategies. Examples of current investments include early-stage education technology ventures funds, and private equity funds focused on affordable housing as well as natural resource and land conservation.

The Foundation prioritizes investments that are highly relevant to our four core areas of focus, and are Colorado-focused. The Foundation targets 30 percent of all new private equity investments as mission-aligned opportunities.

Program-Related Investments

Program-related investments (PRIs) are impact-first investments structured to achieve below-market rate returns. PRIs can be utilized in collaboration with a grant strategy or when the scale of impact cannot be achieved solely through a grant-based strategy. ​An example​ of this ​i​s a low-interest loan that support​s affordable housing or increase​s economic opportunity for underserved communities.

The Foundation will consider PRIs when the opportunity is focused on and within Colorado communities and ​i​n alignment ​with our four focus areas. ​W​e use various strategies including lines of credit, pay for success models, concessionary private equity, certificates of deposit, loan guarantees and loans.​ The typical PR​I ranges from $250,000 to $1,000,0000, with repayment terms between 3 and 10 years and rates between 0-4 percent.

All ​P​RIs are evaluated and approved on an individual basis and are sized and underwritten with the expectation of a complete return of capital.​ ​W​e consider ​P​RIs as commitments towards impact that are above and beyond our grant commitments and can commit up to 6 percent of the value of the Foundation’s endowment in the form of PRI​s.

Socially Responsible Investments and Operations

The Foundation tracks environmental, social and governance (ESG), diversity and equity, and carbon metrics across our public equity portfolio. We also practice socially responsible operations (SRO) by intentionally partnering with vendors and partners who share our values of community service and commitment to Colorado.

Impact Investments Team


Leslie Sabin

Vice President for Finance, Administration, and Impact Investing

If you are interested in learning more about both program-related and mission-related investments, the Mission Investors Exchange and Confluence Philanthropy are good resources. Both are associations of foundations and other philanthropic organizations that use PRIs and MRIs to accomplish their philanthropic goals. The associations provide a forum for networking, professional development, collaboration, and outreach to funders, including those new to the PRI, MRI, and social investing field.

Impact Investments

Year Entity Amount Type Strategic Priority Area Served
2023 CO-Invest – Mission Colorado Fund $1,000,000

Mission-Related Investment

Community Development

Colorado and beyond

2023 Ecosystem Integrity Fund V $2,000,000

Mission-Related Investment

Natural Resources

Colorado and beyond

2023 Elevation Community Land Trust – Developer Startup Investment $550,000

Program-Related Investment

Community Development

* Statewide

2023 First Southwest Bank $1,000,000

Program-Related Investment

Community Development

* Statewide

2023 Lafayette Square Business Development Company $1,500,000

Mission-Related Investment

Community Development

Colorado and beyond

2023 Lyme Timber Company LP — Forest Fund VI $1,000,000

Mission-Related Investment

Natural Resources

Colorado and beyond

2023 National Forest Foundation $250,000

Program-Related Investment

Natural Resources

* Statewide

2023 Rose Affordable Housing Preservation Fund VI $3,000,000

Mission-Related Investment

Community Development

Colorado and beyond

2023 Sober Apartment Living CO $200,000

Program-Related Investment

Community Development

Denver

2022 Avesta Colorado Fund $1,250,000

Mission-Related Investment

Natural Resources

* Statewide

2022 Blackhorn Ventures Fund II $2,000,000

Mission-Related Investment

Natural Resources

* National/International

2022 Collide Capital $1,000,000

Mission-Related Investment

Community Development

* National

2022 Colorado Housing Accelerator Initiative (CHAI) Fund $1,000,000

Program-Related Investment

Community Development

* Statewide

2022 CU Healthcare Innovation Fund II $1,500,000

Mission-Related Investment

* National

2022 Elevation Community Land Trust – Chestnut Lofts $550,000

Program-Related Investment

Community Development

Denver

2022 Future of Water Fund I $200,000

Mission-Related Investment

Natural Resources

* National

2022 Greater Colorado Venture Fund II $1,000,000

Mission-Related Investment

Community Development

* Statewide

2022 Public Education & Business Coalition – Teacher Residency Program $250,000

Program-Related Investment

Education

* Statewide

2022 Reach Capital IV $2,000,000

Mission-Related Investment

Education

* National

2022 Reach Opportunity II $1,000,000

Mission-Related Investment

Education

* National