IMPACTASSETS 50™

An Annual Showcase of Impact Investment Fund Managers

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An Annual Showcase of Impact Investment Fund Managers

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ImpactAssets 50: A Global Landscape of Impact Investment Fund Managers
The ImpactAssets 50 (IA 50) is the first open-source, publicly published database of experienced private debt and equity impact investment fund managers.
https://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

IA 50 2021 PROFILE

City Light Capital

Total Assets Under Management: $100 – 499M
Asset Class: Private Equity
Primary UN Sustainable Development Goal: 11 – Sustainable Cities & Communities
Climate Change
Education
Health and Wellbeing

Firm Overview

Category: Private Equity - Early Stage (US)

City Light is a Venture Capital firm that invests early in impactful companies. They partner with experienced teams building category-defining solutions in the areas of education, safety and care, and the environment - where more revenue equals better lives at scale, every time. As one of the earliest and most successful impact investing firms, City Light has a track record of identifying and scaling impact in ways that build better companies.

Firm Headquarters: United States
Years of Operation: 10 years or more
Total Assets Under Management:
$100 – 499M
Total Number of Investors: More than 25
% of Capital from Top 3 Investors: Less than 25%
Investment Thesis:

We invest in companies where more revenue equals better lives at scale, every time.

Investment Overview:

We invest in companies where the core product or service generates positive social or environmental impact. These products and services typically include some sort of data component that allow us and the company to track impact over time - and to adjust the product to optimize impact early on.

Company Differentiator:

City Light has proprietary data and systems built to give us an edge in the market. We built "The Machine", which allows us to see more than 50,000 deals every quarter and collect data on thousands more. We also manage a seed portfolio of more than 50 companies, all of which report to us on financial, operational, and impact KPIs - creating a unique data set of early-stage impact companies. 

Investment Example

OhmConnect is a residential demand response provider focused on reducing carbon emissions generated through residential electricity use. When the energy grid is at peak demand, OhmConnect pays consumers to turn off their internet-connected devices at home to save energy. As a result, utilities do not have to turn on harmful peaker plants, which emit more carbon. OhmConnect and its users are only paid when the energy is saved, thus creating a positive impact feedback loop.

Leadership and Team

Cumulative Leadership Experience in Impact Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
30 years or more
Josh Cohen – Partner More Info

When considering how he wanted to be remembered, Josh turned to impact investing before it had a name, combining his experience as a venture capitalist, technology company executive, and family office CIO with his values. Thus, the idea for City Light was born: partnering with experienced entrepreneurs using technology to generate significant financial returns while having a measurable social impact. Prior to founding City Light, Josh led direct investments for a Greenwich CT-based family office, worked in venture capital for a family office based in St. Louis, was a Partner in a private debt fund, and was the Director of Business Development for Mobility Electronics (NASDAQ: IGOI). He began his career as an investment banker in the technology group of Deutsche Banc Alex Brown in San Francisco.

Jeff Rinehart – Partner More Info

That journey began at Capital One (NYSE: COF), where he spent over a decade leading data science and analytics teams across the organization. In his last role, Jeff was VP of Marketing Strategy for US Card where he oversaw a high nine-figure marketing budget across all online and offline marketing channels. Ultimately the need to have a greater impact on the world around him was the driving force for Jeff leaving Capital One to join an EdTech startup on a mission to change higher education. Jeff joined 2U (Nasdaq: TWOU) as their CMO in early 2011, overseeing all aspects of marketing for their University partners. Jeff was part of the core leadership team that grew 2U from a venture-backed startup, through a successful public offering on the NASDAQ.

Tom Groos – Partner More Info

Now at City Light, Tom leverages his extensive operating experience to help entrepreneurial teams tackling some of our toughest social and environmental challenges. Tom sits on the Board of Directors for Shotspotter-SST (NASDAQ:SSTI), Omnidian, VGrid, and Senet, and is a Board Observer to Xage and Sunfolding.

Financial Performance

Target Financial Returns Relative to Benchmark:
Above Market Rates
Actual Performance of Impact Products/Funds Relative to Target Financial Returns in the Past Three Years:
In line with initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
100%
Primary Impact Outcomes:
Addressing climate change and environmental issues
Creating jobs
Increasing access to education and improving educational outcomes
Increasing access to healthcare services and improving health
Addressing racial inequities
Addressing gender inequities
Secondary Impact Outcomes:
Alleviating poverty
Conserving land, oceans, ecosystems and natural resources
Increasing access to financial services
Increasing access to water and sanitation
Value-added Services Offered:
Access to markets

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:

The product MUST generate the positive impact in and of itself. In other words, the target outcome of the product should be the desired impact, and that outcome should be trackable through the product.

Investments systematically include social and environmental sustainability practices in the due diligence process:

Companies fill out a survey allowing them to self-identify the demographic makeup of the management team.

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Impact Verified by an Independent Third-Party:
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to investors and donors
Third Party Validations:
Member of Impact Capital Managers
Impact Frontiers Cohort Participant
Implement recommendations from Task Force on Climate Related-Financial Disclosure
Net Zero Assets Managers Initiative
Utilizes standardized impact metrics (e.g. IRIS+, GIIRS, etc.)
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing

Learn More

Key Contact Name: Sarah Millar
Phone: 212-403-9514
Mailing Address:

335 Madison Ave, Floor 16, New York, NY 10017 USA

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