Bay Area Equity Fund

The Bay Area Family of Funds is a regional effort, developed by the Bay Area Council, to attract private capital into low and moderate-income neighborhoods through 'double bottom line' (DBL) investing. The Family of Funds leverages its investments in these communities through projects that promote smart growth, address poverty, support local businesses and clean up contaminated sites with market-based solutions. To date, it has raised over $215 million for DBL investments through four separate funds: the Bay Area Smart Growth Funds I & II, the Bay Area Equity Fund, and the California Environmental Redevelopment Fund (CERF). The Funds' investors consist of banks, foundations, pension funds, insurance companies, individuals, and other corporations, and are expected to leverage $1 billion of investment in Bay Area low-and-moderate income communities over a ten year period. Investments from the Bay Area Family of Funds require 'double bottom line' (DBL) returns; risk-adjusted market rates of financial return for its investors (the first bottom line) and significant economic, social, and environmental returns for the communities (the second bottom line). The second bottom line objectives are focused on the following areas: geographic location, community benefits, economic development, wealth creation, environmental performance, and community participation. A $66 million real estate equity DBL fund, the Bay Area Smart Growth Fund I focuses on projects designed to make a measurable impact in community revitalization, while generating favorable rates of financial returns for its investors. These include investments in retail, office, commercial, and industrial projects, as well as multi-family and select single-family housing opportunities. This fund invested $80 million in 15 deals, 10 deals realized or partially realized, with returns exceeding projections. The Bay Area Equity Fund (BAEF) is a highly successful $75 million venture capital fund. Investments focused on rapidly growing technology, consumer products and services, and health care companies. The BAEF invested all $75 million of capital across 18 portfolio companies and is currently in the distribution phase. CERF funded largely through the initiative of the Bay Area Council, is a $34 million bank-funded, statewide, environmental clean-up fund with 25 percent of its investment capital targeted for the Bay Area. CERF has $60.4 million in transactions through 18 completed deals in California. The Bay Area Smart Growth Fund II had its first close at $41.25 million, which took place May 31st, 2007, the fund is now actively exploring real estate investment opportunities around the Bay Area. This fund, like the Smart Growth Fund I, invests in spectrum of real estate projects including retail, office, industrial, and housing (for sale and rental).