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Genesis LA Economic Growth corporation works to revitalize the underserved communities of Los Angeles through economic development and strategic planning. Its non-profit status allows it to provide services at low cost, and to support its efforts in innovative ways.
National Leader in Developing Socially Responsible Funds
A national leader in development of socially responsible, double bottom line funds (market rates of financial return for investors AND significant environmental benefits and social returns), Genesis brings together private capital, seasoned investment managers, and the expertise to put money to work. This combination turns seemingly unachievable project ideas based on good intentions, into real business deals.
Genesis LA also works to bring job producing businesses and needed services to neglected neighborhoods through its Project Development Services. Genesis consultants combine knowledge of development strategies, financial modeling, capitalization on local resources, public and private funding sources, and moving projects through public agencies.
It is this real-time, on-the-ground experience that allows Genesis LA to act as a dynamic advisor to its Funds, providing deal flow and assisting with deal structure to ensure that the strongest possible packages are offered to investors.
For investors, socially responsible investments enhance portfolios by providing:
- Competitive Financial Returns
- Enhanced Community Image
- Support Economic Growth
“If you pursue the ‘double bottom line’ of wealth for your enterprise and broadened wealth for the community, you will enhance both California’s and your own prospects for economic success.”
—Phil Angelides,
California State Treasurer |
Socially Responsible Investments Enhance Portfolios
Bankers, required by federal regulators to invest in low income areas, have learned how to successfully achieve “double-bottom line” results of doing good and doing well. They invest to positively impact underserved communities while also achieving competitive market returns on their investments.
Now, other investors, including insurance companies, pension funds, private investors and foundations investing their endowments, are seeking socially responsible investments to enhance the returns and impact of their portfolios. Between 2001 and 2003, assets in community investment funds and institutions increased 84%, to over $14 billion.* The track records of the several Funds operating for three or more years, are showing handsome risk-adjusted returns.
“Genesis LA and Shamrock Capital Advisors are model citizens of Los Angeles— doing good and doing well, benefiting all who live, work, and dream in our dynamic city.”
—Rocky Delgadillo,
Los Angeles City Attorney |
* - Social Investment Forum
Mission Directed Investments are Profitable, Image Enhancing and Good Business
Funds highly targeted by geography and mission are succeeding not just in the market, where some are paying mezzanine-type returns in the mid to high teens, but also in shaping opinion about the investors. Regulators and elected officials looking for creative ways to solve urban development challenges without government expenditures are increasingly interested in this method of investing. Institutions such as pension funds and endowments, are progressively mandating or allocating a portion of their investment portfolios be directed toward investments that have both financial and social impacts.
Investors who produce well-rounded portfolios that include socially responsible investments enhance their image among opinion leaders and their clients. The social payoffs of these funds result in jobs, needed retail and community services, and housing that is affordable. Importantly, the funds are catalytic: they spur others to make follow-on investments within these communities, thus increasing wealth at all levels.
“Shamrock’s management of the Genesis Real Estate Fund and Genesis LA’s ideas have provided a powerful force for the successful economic revitalization in Los Angeles.”
—Robert J. Flowers,
Senior Vice President of Community Lending and Investment, Washington Mutual Bank |
Genesis LA and The Genesis Family of Funds
Genesis LA is a national leader in conceiving and developing for-profit, socially responsible
investment funds. Genesis LA undertakes, from concept to final closure, a rigorous process in developing each of its Funds. After investment parameters are set, Staff selects a private-sector fund manager to independently manage each Fund and also assists in capitalizing the Funds and facilitating deal flow.
Genesis LA has established four investment funds to serve Southern California, and has others under development. Its concepts have been replicated in the San Francisco Bay Area and Sacramento. Similar funds in San Diego, Florida and Israel are currently being developed.
The Genesis Family of Funds members have double bottom lines—by doing good and doing well, they bring risk-adjusted market-rate returns to investors and socio-economic benefits to communities. The fund family includes:
Genesis Community Investment Fund, managed by Genesis LA
- $1 million internally managed, capitalized by Washington Mutual
- Flexible, low-cost gap financing for community-based projects
- Planned growth to $15 million
Genesis Real Estate Fund I, managed by Shamrock Capital Advisors
- $85 million capitalization
- invests in retail, commercial, industrial and mixed-use real estate projects that create jobs and benefit low/moderate income neighborhoods of Los Angeles
Genesis Real Estate Fund II, managed by Shamrock Capital Advisors
- $150 million capitalization planned to invest in Community Reinvestment Act (CRA) qualified projects in nine Southern California counties
“Genesis LA is impressive. Every day they demonstrate
how investment capital can positively impact the challenges faced by the most underserved,
inner-city neighborhoods. Bank of America is proud to invest
in the tangible and sustainable community improvement created by partners like Genesis LA.”
—Lynn Pike,
President,
Bank of America California
“Participating in the Genesis Real Estate Fund has helped us meet our philanthropic and financial goals.”
—Steve Cobb,
Vice President and Chief Financial Officer,
California Community Foundation.
“At the core of Wells Fargo’s vision and values is the commitment to promote the economic advancement of all of our communities. The Genesis funds serve as a wonderful vehicle to invest in communities that need it the most.”
—Eve Ryan,
Senior Vice President, Wells Fargo Community Development
“Genesis LA supported the vision of the LA Design Center and helped us achieve recognition as a showcase for South LA’s furniture manufacturers. The team at Genesis LA knows the people in our social and political communities and understands how things get done, providing the extra push we needed to succeed.”
—Francisco Pinedo,
Cisco Brother’s Manufacturing/Los Angeles Design Center |
Investors in the Genesis Family of Funds include: Washington Mutual, Wells Fargo Bank, Bank of America, Northwestern
Mutual Insurance Co., Bank of the West, California Community Foundation, Citigroup, City National Bank, Cooperative Assistance
Fund, Far East National Bank, Fulcrum Ventures Management, MBNA, Merrill Lynch, Nehemiah Corporation, OFC, Inc., Shamrock Holdings of California, Stewart Title, Union Bank of California, and US Bancorp. |
