due diligence: food systems
DESCRIPTION
Presented at the 2011 Take Action! Impact Investing Conference in San Francisco.www.impactinvestingconference.comTRANSCRIPT
Due Diligence: Food SystemsTakeAction! Impact Investing Conference
March 15, 2011
Tina N. Castro
Director, Mission Related Investments
Impact Investing
at TCE
It is The California
Endowment’s
Mission Investing
Policy to:
Support and further TCE’s Building Healthy Communities work, invest opportunistically across
all asset classes, integrate the mission investing strategy with Building Healthy Communities, the
broader investment strategy of The Endowment, and other departments throughout TCE.
Target Return: At least 3% annualized over the long-term (defined as a full market cycle of three to five years)
while being strategic about how much risk and which types of risk are taken on for a given level
of return.
Asset Allocation: Mission drives the search for investment opportunities thereby possibly creating concentrations in
certain asset classes that can increase the risk of the mission-related investment allocation.
Size: Mission investments will be made of a size and scale that take into consideration both the fixed
costs and resource requirements in making the investment but also the reality that smaller size
investments may be necessary at times to address the needs of Building Healthy Communities.
Liquidity: The mission investment fund will not be a source of liquidity for the Endowment. Therefore,
mission investments may be less liquid if necessary to provide patient capital to meet the needs of
Building Healthy Communities.
Geography: TCE has a strong bias for geographically targeting California and the 14 BHC sites.
Opportunities to invest outside of CA that have a clear and compelling connection will be
considered.
The California
FreshWorks Fund
The California FreshWorks Fund is a public-private partnership loan fund intended to finance grocery
stores and other forms of fresh food retail and distribution in underserved communities throughout
CA. It is modeled after the PA Fresh Food Financing Initiative and it has been developed to align
with the National Healthy Food Financing Initiative.
Target Fund
Size:
$200 million ($97.5M Committed, $30 million
pending approval)
Uses of Capital: Loans & Grants to Grocery Stores & Other Fresh
Food Retailers & Distributors
Capitalization: Debt & Grants
Program
Eligibility:
Program Guidelines to be released shortly
Expected
Launch:
April 2011
Initiative Structure
Grocery Stores &
other Healthy Food Retailers &
Distributors
Lead Investor/ Lead Grantor
The California EndowmentCo-Investors/ Co-Grantors
NCB Capital ImpactProgram Administrator
Food Access
Organization
Regional
Community
Engagement
The California FreshWorks Fund
Len
din
g /
Gra
nts
Rep
ortin
g
Outreach Regional
Community
Engagement
Applications
Developers /
Operators
Federal HFFI Resources
Treasury, USDA, & HHS
Contacts
Program Administrator:
NCB Capital Impact
1333 Broadway, Suite 602
Oakland, CA 94612
Contact: Scott Sporte, Managing Director,
Community Investment Group
510-496-2233
Contact: CHFFI Program Manager TBD
www.ncbcapitalimpact.org/healthyfoods
The California Endowment Working Group:
Tina Castro, Director, Mission-Related Investments
213-928-8635
Marion Standish, Director, Healthy CA
510-271-4309
Beatriz Solis, Director, Healthy Communities
213-928-8736
Charles Fields, Regional Program Manager, Healthy Communities
213-928-8601
Judi Larsen, Program Manager, Healthy CA
510-271-4346
