About the Job
One of Living Cities’ key program areas is Capital for the New Majority (CNM). In the context of closing racial income and wealth gaps, CNM seeks to drive more capital and resources to entrepreneurs and fund managers of color. Functionally, CNM consists of a field-building program, as well as two impact investment funds. Having multiple tools at its disposal allows the CNM team to constantly innovate - by developing new hypotheses and theories, testing those ideas, learning from what has and has not worked, and sharing those lessons with the broader field.
In order to accelerate the adoption of innovative financing for the benefit of people of color and the cities in which they live, Living Cities has been making impact investments for more than a decade. These investments have largely been made out of two structured debt funds capitalized by 15 institutional investors, the majority of whom are Living Cities’ members. The Catalyst Fund (LCCF), a $38 million structured debt fund closed in 2008, is in the final stages of its fund life cycle, has returned capital to its investors, and is in the process of winding down its operations. The Blended Catalyst Fund (BCF) is a $37 million fund focused on closing the racial wealth gap by supporting the development of jobs, income, and wealth for people of color. The BCF achieved its final close in December 2016 and is expected to be fully deployed by the end of Q1 2021.
Living Cities currently has a growing fund management team that reports to the Managing Director of Capital for the New Majority. This is an exciting opportunity for a technically inclined individual who is passionate about working with borrowers through all stages of the financing process and deeply committed to using capital to create better outcomes for founders of color. We refer to borrowers, loans, and debt. However, we have and will likely continue to make debt and equity investments. For ease of understanding, we refer to borrowers, loans, and debt as a proxy for all investment types in this document.
The Investment Manager will support the Living Cities' Catalyst Funds and future investment vehicles by actively managing their portfolio and working with borrowers through all stages of the financing process, e.g., facilitating the sourcing, closing, post-closing monitoring, disbursement, servicing, and reporting of the impact of individual investments of the Funds. The Investment Manager will work closely with key members of the investment team and will report to the Fund Manager and be supported by one or more Investment Associates. The Investment Manager may also act as a technical resource to junior staff in the department.
Primary Responsibilities Include:
- Manage the underwriting function including all aspects of borrower due diligence.
- Spread borrower financials and provide a historical analysis of strengths and weaknesses in order to assess capacity for new debt. Focus on the “why” behind the #s and identify areas that need clarification and further explanation from the borrower.
- Analyze budgets, test assumptions behind cash flow projections, and create appropriate deal-specific sensitizations and scenarios that stress test debt service capacity.
- Perform analysis of borrower operations, programs, management, and evaluate historical and projected social impact.
- Perform thorough risk assessment, using both organizational and environmental factors. Identify potential risks/mitigants. Assess the likelihood of repayment sources.
- Proactively flag risks, raise issues, and propose possible solutions.
- Prepare due diligence questions for borrowers and, if relevant, lender partners, throughout underwriting. * Incorporate responses and track additional follow-up as needed.
- Make appropriate loan structuring and approval recommendations together with the Fund Manager.
- Maintain thorough and organized client documents and underwriting due diligence checklists.
- Monitor borrower relationships for borrower needs or difficulties.
- Analyzing loan performance against underwriting projections to identify problem investments, recommend collection strategies and action plans.
- Mitigate loan portfolio risk through coordination of post-closing technical assistance, extensions, restructurings, and work-outs.
- Increase, extend, modify and restructure loans as needed.
- Participate in annual risk rating reviews.
Business development and client management:
- Assist in sourcing and deal origination of primary investments, secondary transactions, and direct investments.
- Actively maintain and cultivate relationships with new and existing borrowers and financial partners.
Learning and storytelling:
- Supporting Living Cities goals to synthesize lessons from our impact investing portfolio and share with key decision-makers in the fields in which we work (including philanthropy, impact investing, community and mission-driven lending, community economic development, and urban public policy).
- Required Experience and Knowledge: Four-year degree or equivalent; advanced degree a plus, but not required
- A minimum of 5 years of work experience in lending and/or equity investments including asset management, credit analysis, and investor relations
- Proficiency in analyzing complex financial statements of for-profit organizations is required; experience working with nonprofit financial statements is a plus
- Knowledge of business law including contracts, loan collateral, creditor’s rights and forms of business organization, and ability to review and negotiate loan documents
- Knowledge of urban policy and the issues affecting communities of color in U.S. cities
- Excellent analytical skills, combined with demonstrated ability to synthesize and clearly communicate complex issues
- Excellent Excel skills
- High level of organization and attention to detail
- Excellent writing and verbal presentation skills
- Limited travel (approximately 10% of the time) is required; Travel is primarily local during the business day, although some out-of-area and overnight travel may be expected
- Superior interpersonal skills, ability to manage and work in teams, interacting constructively with diverse constituents
- Highly energetic, creative problem solver exhibiting deep commitment and passion for Living Cities’ mission
- The ability to collaborate across roles and locations
Racial Equity & Inclusion (REI)
- Foundational knowledge and core concepts
- Understands why racial equity is an integral part of Living Cities’ approach, inside and outside the organization
- Displays clear willingness to learn and apply REI history and concepts REI Practice and Analysis
- Engages with curiosity, humility, and openness in discussions about race, equity, and power inside and outside of the organization
- Understands how the construct of race has impacted the distribution of power, resources, and recognizes its impact on current and future outcomes across systems
ATS+Partners for Living Cities
Founded in 1991, Living Cities is a collaborative of 19 of the world’s largest foundations and financial institutions. We foster transformational relationships across sectors to connect those who are willing to do the hard work of closing racial income and wealth gaps. Together, we are partnering with cross-sector leaders in cities across the country to imagine and create an America in which all people are economically secure, building wealth, and living abundant, dignified, and connected lives. Our staff, investments, convenings, and networks support efforts that operationalize racial equity and inclusion in local government, create inclusive narratives, bring communities together to devise and act on a shared vision for the future, and eliminate inequities in systems such as entrepreneurship, homeownership, and access to capital.