Martin Muoto, chief executive, Sola Impact
California based real estate investor Sola Impact has seen a $15 million investment into its Black Impact Fund, the fourth fund it has launched.
The investment comes from Equitable Financial, a franchise of Equitable Holdings, which recently committed to invest a portion of its general account towards “creating meaningful and positive social impact in the communities in which it serves”.
Sola Impact specialises in funding the provision of affordable housing to disadvantaged communities, primarily in the Los Angeles area.
The firm has a portfolio of over 1500 apartments in the area, with a development pipeline of a further 1500 units.
The investment follows a trend in investor preferences in recent months, with more demand for impact investments at the behest of retail and institutional clients. Sola attracted an investment of $25 million to the fund from Paypal in January 2022.
Steve Joenk, chief investment officer at Equitable, commented: “Impact investing is critical in our commitment to reducing inequities and strengthening communities.
“Our investment in Sola Impact’s Black Impact Fund advances economic mobility through affordable and workforce housing, access to education, mentorship and career advancement.”
Martin Muoto, chief executive of Sola, added: “Equitable continues to demonstrate its commitment to diversity, equity, and inclusion.
“Investing in communities that have historically been overlooked and underinvested in is one of the most meaningful ways to create opportunities in Black and brown communities. We are proud to add Equitable to our growing community of investors that take a long-term, inclusive approach to ESG.”
Founded in 2015, Sola Impact is focused on real estate investment in several of Los Angeles’ poorest neighbourhoods. It seeks to apply investment capital, rather than government funds, to the development of affordable housing.
New York-based Equitable Holdings was founded in 1859 and was formerly owned by AXA, before it became a standalone firm in January 2020. It has around $700 billion in assets under management (AUM).
