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

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
2025 Blueprint Colorado $2,500,000

Program-Related Investment

Education

Colorado – Statewide

2025 Bluff Lake Nature Center $500,000

Program-Related Investment

Natural Resources

Denver Metro

2025 Colorado Nonprofit Bridge Loan Fund $1,000,000

Program-Related Investment

Other

Colorado – Statewide

2025 Colorado West Land Trust $1,250,000

Program-Related Investment

Natural Resources

Rural Colorado

2025 Mad Capital Perennial Fund II $1,000,000

Mission-Related Investment

Natural Resources

US with some Colorado touchpoint

2024 Beartooth Group Fund IV $1,000,000

Mission-Related Investment

Natural Resources

Mountain West

2024 Burnt Island Ventures Fund II $1,000,000

Mission-Related Investment

Natural Resources

Mostly US but worldwide

2024 Colorado Sun (LOC) $200,000

Program-Related Investment

Other

Colorado – Statewide

2024 Ember Infrastructure Fund II $2,500,000

Mission-Related Investment

Natural Resources

Worldwide

2024 Museum of Contemporary Art $250,000

Program-Related Investment

Other

Denver Metro

2024 PGIM Real Estate Essential Property Partners Fund II $3,000,000

Mission-Related Investment

Community Development

United States

2023 Avesta Colorado Fund I $1,250,000

Mission-Related Investment

Natural Resources

Colorado – Statewide

2023 CO/invest Fund I $1,000,000

Mission-Related Investment

Community Development

Colorado – Statewide

2023 Ecosystem Integrity Fund V $2,000,000

Mission-Related Investment

Natural Resources

Mostly US but worldwide

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

Program-Related Investment

Community Development

Colorado – Statewide

2023 First Southwest Bank CD $1,000,000

Program-Related Investment

Community Development

Rural Colorado

2023 Lafayette Square $1,500,000

Mission-Related Investment

Community Development

Mountain West

2023 Lyme Forest Fund VI $1,436,190

Mission-Related Investment

Natural Resources

United States

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