HEALTHCARE FUND DIRECT PRIVATE EQUITY (ABOUT COMMUNITY CAPITAL LLC) PIONEERING INVESTING IN SCALE TO TRANSFORM AMERICA S COMMUNITIES A pioneer in the impact investing space, was founded in 1998 solely to generate institutional quality, purpose-driven investments. We have developed an investment platform that offers investors, who are seeking to add impact to their portfolios, the opportunity to invest in scale in investments that are suitable for institutional investors. To date, we have originated $1.9 billion of investments to develop high-quality affordable housing, healthcare and childcare facilities, and to finance small businesses that will preserve or create jobs. We seek to guide current impact investors seeking scale as well as investors new to impact, in making investments without compromise to credit quality or return, that will unleash the power of capital to transform communities. 1998 Impact Community Capital formed 2000 First impact investment: $40 million California affordable multifamily housing loan pool purchase followed by first 100% Affordable Housing Commercial Mortgage Backed Securitization (CMBS). 2009 Formed Registered Investment Adviser: Impact Investment Adviser LLC. 2011 Surpassed $1 billion in cumulative investments originated 2014/2015 First issuer of CMBS to use Freddie Mac s Q- Series product. 2017 Achieved $1.9 billion in cumulative investments originated INVESTING IN BEFORE THERE WAS INVESTING Our 19-year history demonstrates that investing for impact does not require trading risk and return for measurable impact. $1.9 billion in investments originated 12 investment funds: 7 active and 5 exited has made investments in 40 states plus the District of Columbia using its proprietary platform to create scale Over 45,000 affordable multifamily housing units financed including senior and special-needs units. Over 400k individuals served by -funded healthcare and childcare developments. 2003 Community Impact Loan (CIL) Fund launched, a revolving loan facility supporting investment in affordable multifamily housing mortgages. Currently, CIL maintains $550 million in committed capital. 2004 First high-impact private debt funds launched to finance development of childcare and healthcare facilities supporting low-income families. Community Impact Loan Fund (CIL) Securitized Housing Loans - CMBS Private Real Estate - Fund of Funds Private Debt Fund Direct Commercial Real Estate Debt Direct Private Equity Private Equity - Fund of Funds (Units are in $ mil) $66.50 $31.00 $122.90 $24.10 $19.30 $835.70 2006 First high-impact private equity funds of funds launched for commercial real estate and job creation in low and moderate-income areas $788.60 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.
HEALTHCARE FUND DIRECT PRIVATE EQUITY (ABOUT COMMUNITY CAPITAL LLC) WHAT DO WE MEAN BY At, our investments are the S in ESG with a little bit of E sprinkled in. They are active and intentional. More specifically, s investments are made with the purpose of generating a positive outcome for underserved populations, communities or the environment together with market returns. Employing private debt and equity structures, will make an investment because we believe it will help a community to solve an intractable social problem, has an acceptable level of risk and offers a commensurate return. These investments are intended to generate measurable change along with financial returns. It s what we call Investing without Compromise for Positive Returns. INSTITUTIONAL GRADE Founded and backed by some of the leading insurance companies and still guided by their well-considered expectations of financial performance and corporate stewardship. Current owners include: Allstate Insurance Company Farmers Insurance Companies Nationwide Insurance Companies Pacific Life Insurance Company State Farm Insurance Companies Teachers Insurance & Annuity Association 21st Century Insurance Company EXPERIENCED MANAGEMENT Impact s management team averages over 20 years of capital markets and community development finance expertise. Jeff Brenner, CEO Mike Lohmeier, CIO Stephanie Tirman, Director, Accounting & Operations Matt Berg, SVP/Counsel VALUES WITH LASTING STEADFAST STEWARDSHIP. We are thoughtful guardians who own our fiduciary responsibility, with the discipline to build and reward the trust of our investors. ALWAYS TENACIOUS, NEVER SATISFIED. We know what we want to accomplish, and we are resolute in our pursuit of exceptional returns and impact. STAKEHOLDER OBSESSED. In serving our investors, coworkers, communities or partners, we relentlessly strive for positive outcomes. TOMORROW FOCUSED. We see where the world s headed and understand what it takes to meet the evolving needs of investors and communities. INTEGRITY ABOVE ALL. We are open and honest at any cost, standing behind our work and our words unequivocally. In 2009, formed Investment Adviser LLC, an SEC Registered Investment Adviser with regulatory AUM of $358 million as of September 30, 2017. Each fund created by is advised by IIA under a management and advisory agreement. Advisory Team Legal: Dechert LLP Audit: Deloitte US Servicing: Pacific Life Insurance Company 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.
DIRECT COMMERCIAL REAL ESTATE DEBT FUNDS Between 2003 and 2010, created four direct commercial real estate funds to channel capital to address intractable problems facing communities in need of access to quality healthcare, childcare and community facilities. Two of the funds focused on expanding healthcare facilities, one on developing new childcare centers and one on creating new community facilities. HEALTHCARE Our first fund was created in 2004 and leveraged the federal New Markets Tax Credit (NMTC) to deliver competitively priced capital to finance primary healthcare facilities serving low and moderate income communities in California. Fund II built off the favorable experience in Fund I by providing direct financing to expand capacity of community health centers in California and Massachusetts serving low income communities. Fund I: $20.4 million commitment Fund II: $24.6 million commitment Fund I: Created in 2004; Exited in 2015 Fund II: Created in 2010; Exited in 2014 Funding for 11 primary care facilities, reaching 400,000+ patients All facilities located low-income census tracts and/or serving low income individuals and families CHILDCARE Impact created its Childcare fund in 2003 to deliver attractively priced capital to facilities offering affordable childcare to low income and special needs children in low income census tracts throughout California. $10.3 million commitment Created in 2003; Exited in 2017 Funding for childcare space for ~250 low-income and special needs children in low income communities across California COMMUNITY FACILITIES Our Community Facilities Fund was created in 2006 to leverage the NMTC and deliver well-priced capital to finance commercial centers in Southern California to provide jobs and stimulate economic development in low income communities. $20.0 million commitment Created in 2006; Exited in 2014 Debt capital developed commercial facilities in downtown Los Angeles and San Bernardino bringing temporary construction and permanent full-time jobs to both communities and stimulating further economic development. 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.
OPEN-ENDED CRE DEBT FUND The $550-million Community Impact Loan Fund (CIL) is a revolving credit facility provided by 7 institutional investors, created in 2003 to provide continuous availability of capital to fund permanent mortgages on affordable multifamily housing. CIL generates a steady source of high-quality, standardized affordable multifamily mortgages for investors in s pioneering securitized housing loan platform and its closed-end housing loan funds. CIL partners with three national banks to originate these mortgages under long-term program agreements. These banks are among the largest originators of affordable multifamily mortgages in the U.S. (Source: Anderson, Bendix. AHF Announces Top 25 Lenders of 2016. Affordable Housing Finance, 6 Mar.2017, housingfinance.com/finance/ahf-announces-top- 25-lenders-of-2016_o.) By working upfront with a leading rating agency and rated master loan servicer, has garnered an investment-grade rating on the aggregation vehicle during the acquisition period and has a high degree of certainty regarding eventual securitization. Borrowers benefit by obtaining a favorable rates and terms. TARGET Affordable, multi-family mortgage loans for working families, seniors, previously homeless and persons with special needs. On average, this housing is affordable for persons making less than 50% of Area Median Income has made investments in 40 states plus the District of Columbia Over 45,000 affordable housing units financed $550MM revolving commitment from seven institutional investors $830.32MM cumulative investments in affordable housing since 2003 ~$200MM currently in portfolio CURRENT INVESTMENTS Subordinate Interests in Affordable Housing CMBS 12% CIL Portfolio Cash 13% Whole Mortgage Loans 75% PROVEN EXIT STRATEGY pioneered the securitization of affordable housing loans in five separate securitizations, demonstrating CIL s ability to create exits for its CIL investors. (For more detail, please refer to the Fact Sheet for Securitized Housing Loans). investments are cumulative since inception, comprise affordable housing mortgage loans and are not a reference to fund performance. 2000-A CMBS Securitization of $40.5MM 2001-A CMBS Securitization of $164.3MM 2010-1 CMBS Securitization of $302MM 2014-1 CMBS Securitization of $215.2MM, first Freddie Mac Q-Series (Q001) 2015-1 CMBS Securitization of $106.5MM, second Freddie Mac Q-Series (Q002) 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.
PRIVATE DEBT FUNDS In 2011 and again in 2016, created two private debt funds to leverage a unique California state program that provided state premium tax credits for insurers directing capital to Community Development Financial Institutions (CDFIs). FUND I The mission of these CDFI s is to provide financing in the most economically underserved markets. This approach is one more example of how maintains an efficient operating structure by entering into strategic partnerships with quality, experienced investment/asset originators to create scalable, institutional grade investment funds. FUND II In 2011, leveraged the California Organized Investment Network s (COIN) state premium tax credit to invest insured deposits in 34 CDFIs across the state while securing state premium tax credits for its investors. In 2016, again leveraged the COIN state premium tax credit to provide debt capital to CDFIs that are in turn, providing financing to underserved communities in California. With this fund, made investments in two large CDFIs, both of which were able to leverage the capital to further support their financing activities. Fund I: $11.0 million commitment Fund II: $20.0 million commitment Fund I: Created in 20011; Exited in 2016 Fund II: Created in 2016; Active Fund I: Funding for 34 CDFIs throughout California. Deposit proceeds were leveraged by the CDFIs with their existing capital and used to make loans in financially underserved communities and to disadvantaged persons throughout their organizational footprint. Fund II: The objective of the investments is to allow the CDFIs to further leverage their balance sheets to make loans for community health facilities, affordable housing and economic development projects all benefitting low income communities and families throughout the state. 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.
PRIVATE HEALTHCARE FUND OF FUNDS FUND Between 2006 and 2011, created three fund of funds for institutional investors totaling $147 million in commitments for smart-growth initiatives, historic preservation projects and investments in small businesses to create and/or preserve quality jobs. PCCP IV PRIVATE EQUITY REAL ESTATE FUND OF FUNDS PCCP IV ( PCCP IV ) was created in 2006 to allow s investors a scaled and economically efficient method to invest in a private equity real estate fund ( CRE Fund ) focused on smart growth. The $69.9 million commitment facilitated the CRE Fund s investments into a wide range of sectors office, retail, industrial, residential, mixed use and land. $69.9 million commitment Created in 2006; Still active 47 properties in urban or underserved communities; or that are smart-growth in nature HUNTINGTON CAPITAL II PRIVATE EQUITY FUND OF FUNDS Huntington Capital II ( HCap II ) was created in 2008 to give investors a scaled and efficient approach to invest in job creation. HCAP II invested $22.0 million of institutional capital in to a private equity fund ( PE Fund ) focused on making mezzanine debt investments in small, growth oriented businesses. HCAP II was the largest single investor in the $78.0 million PE Fund. $22.0 million commitment Created in 2008; Still active Growth capital investments in 23 underserved small and medium size companies located predominantly in California. BAY AREA HISTORIC PRIVATE EQUITY REAL ESTATE FUND OF FUNDS The Bay Area Historic Fund ( BAHF ) was created to invest in the historic preservation and rehabilitation of two buildings in San Francisco, CA. BAHF provided a structure for its investors to efficiently invest capital in scale to leverage federal historic tax credits. $54.7 million commitment Created in 2011; Exit: One of two investments exited The first investment preserved a historic building along the San Francisco Bay waterfront. The investment allowed the Exploratorium to relocate from a small, obsolete building in to a greatly expanded facility to further its mission as a public learning laboratory exploring the world through science, art and human perception. The second investment rehabilitated a historic building in San Francisco s Presidio, allowing the nonprofit, Futures Without Violence, to greatly expand its work. 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.
SECURITIZED HOUSING LOANS (I-FUND) Since 2003, has pioneered pooling and securitizing affordable multifamily mortgages to facilitate nearly $1 billion (securitized as well as unsecuritized mortgages) of capital to finance affordable housing in 40 states across the U.S. Impact continues to lead the industry by participating in the first two Freddie Mac Q-series securitizations in 2014 & 2015 featuring only mortgages on affordable multifamily housing. INNOVATION 2000 - A: First CMBS issue comprised solely of affordable housing mortgage loans 2014 - A: First Freddie Mac Q-Series (Q001) issuance, comprised solely of affordable housing mortgage loans Over 45,000 affordable housing units financed has invested in 40 states plus the District of Columbia Quality affordable housing for working families, seniors, previously homeless and persons with special needs Affordable to persons and families earning less than 60% of area median income According to the National Low Income Housing Coalition, there are just 35 affordable homes available for every 100 households that qualify. SECURITIZATION INFORMATION pioneered the securitization of affordable housing loans in five separate securitizations. The securitizations provided liquidity for CIL investors and demonstrated the ability to achieve successful investment exits. Further information is below, including identifiers for investment-grade classes and initial credit ratings at issuance. securitization information can be found in most securitization databases under IFUND. 2000-A CMBS Securitization of $40MM o Subsequently unwound and assets contributed to 2001-A securitization. 2001-A CMBS Securitization of $164MM: o Deal Identifier: IFUND 2001-A o Class A identifier: 45256HAA6 2010-1 CMBS Securitization of $302MM o Deal Identifier: IFUND 2010-A o Class A-1 identifier: 45257HAA5 2014-1 CMBS Securitization of $215.2MM, first Freddie Mac Q-Series (Q001) o Deal Identifier: IFUND 2014-1 o Class A-1 Identifier: 45257YAA8 2015-2 CMBS Securitization of $106.5MM, second Freddie Mac Q-Series (Q002) o Deal Identifier: IFUND 2015-2 o Class A-1 Identifier: 45258AAA9 $788MM cumulative securitized affordable housing mortgage loans since 2000 INSTITUTIONAL GRADE Primary, Master and Special Servicer: Pacific Life Rating Agencies: Standard & Poor s, DBRS Limited Counsel: Dechert LLP Trustee: Well Fargo Bank, N.A. 1 Certain of the tranches in 2014-1 and 2015-2 were guaranteed by FMAC using its Q series program. 2015-2 was not rated. 100 Pine Street, Suite 2860 San Francisco, CA 94111 Tel.: 415-981-1074 Fax: 415-981-1087 www.capital.net.