Kresge, Rockefeller Request LOIs for Opportunity Funds
The Kresge Foundation and The Rockefeller Foundation announced a request for letters of inquiry (LOIs) for fund managers establishing new Opportunity Funds. The foundations hope to partner with mission-aligned fund managers who intend to make investments that will benefit the lives and communities of people with low incomes, will deliver promised returns to investors and will evaluate the impact of investments over time.
This is a call for LOIs only; the foundations have made no formal financial commitment at this time. The LOI period opens today and closes at 5 p.m. PST on July 16.
The foundations will evaluate submissions based on the following criteria:
Investments designed to benefit low-income people and communities.
Investment proposals that align with the Foundations’ respective areas of programmatic interest.
Fund-manager experience and readiness. Prospective partners should include experienced fund managers who propose investment strategies that align with the foundations’ programmatic goals, work in or have experience with target key cities and incorporate measurement, evaluation and equity into their work.
Upon review of the submissions, some may be selected for further exploration. The foundations are prepared to commit grants and unfunded guarantees of up to $25 million to support this program. Unfunded guarantees are a form of impact investment in which the foundations take responsibility for a portion of future losses if an investment fails.
On July 10, 2018, the Kresge and Rockefeller foundations hosted a webinar to give an overview and answer questions about their joint request for Letters of Inquiry (LOIs) related to Opportunity Zones. The webinar recording can be accessed here.