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Resources created and curated to support the growth of impact investing, for those new to the field and for experienced practitioners.

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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

Kairos Investment
Management Company

Total Assets Under Management: >$250MM
Asset Class: Real Estate, Private Equity
Geographic Focus:
Impact Investment Focus:
Clean Technology
Affordable Housing and Community Development
Natural Resources and Conservation

Firm Overview

Category: Real Estate
Kairos is an employee-owned investment management firm established in 2005 with a long-term orientation to focus on value-based real estate investments, often with a contrarian approach. We make direct investments and provide capital to sponsors through preferred equity, joint venture partnerships, and junior debt positions. Our flat structure enables us to quickly evaluate projects and make investment decisions across several geographic markets. Our philosophy enables us to be both opportunistic and patient with our investments, management approach, and disposition strategies. Kairos promotes a culture of diligence, discipline, and alignment. Our track record includes transactions valued over $1.25 billion, including over 12 thousand multifamily units and 10 million square feet. We have offices in California, Colorado, and Alabama.
Firm Headquarters: US & Canada
Years of Operation: More than 10 years
Total Assets Under Management:
>$250MM
Total Number of Investors: More than 25
% of Capital from Top 3 Investors: 25 – 50%
Investment Thesis:
Our strategy is focused on identifying properties below the size preferred by institutions, located in growing or supply-constrained markets throughout the United States, primed for environmental efficiency improvements and in need of social programs to strengthen their communities. We believe impact is accretive to returns.
 
Investment Overview:
The Impact Strategy purchases LIHTC assets ignored or mispriced by institutions, mismanaged by developers and owners, that can be improved and run more efficiently, benefiting low-income tenants and communities, while producing an attractive investment return. A large portion of real estate investors focus on new properties with environmentally friendly systems in place. A large opportunity exists to improve older properties with inefficient systems. Replacement systems available are more environmentally friendly, have lower operating and maintenance costs, and lower the overall load on the planet. We partner with local NGOs to offer programs tailored to the needs of the tenancy at each property. Social programs are offered for the benefit of the tenants, to potentially improve their ability to maintain or improve employment, education, and credit, and to improve the performance of the assets through increased pride of place, lower maintenance and unit turnover costs, and better credit as tenants pay rent more consistently.

Investment Example

Chapel Ridge is a 208-unit LIHTC apartment community located approximately 25 miles east of Oklahoma City, surrounded by employers in the services, manufacturing, and gaming industries. The property was acquired through an off-market transaction and secured with long-term Freddie Mac financing at historically low interest rates. Since acquisition, environmental efficiency improvements completed resulted in water and electricity savings of 62.5% and 16% of cost respectively, equal to approximately $80.5 thousand in annual expense savings. In addition, the property has a gym that was previously used for storage by the property's maintenance crew and will be rehabbed to host social activities for the benefit of tenants.

* This example is not representative of all investments made within the strategy. Readers should not assume the investment identified is or will be profitable.

Leadership and Team

Cumulative Leadership Experience in Investing:
More than 30 years
Cumulative Impact Experience of Top Three Firm Leaders:
10 – 20 years
Carl Chang – Founder & Chief Executive Officer More Info

Carl Chang founded Redwood-Kairos in 2005 after more than 15 years managing the investments and real estate holdings of his family’s investment portfolio. Mr. Chang has directly acquired, developed, and managed over $1 billion worth of retail shopping centers, office, multi-family, and multi-tenant light industrial properties primarily throughout the United States. He has also successfully managed private equity investments in a number of early-stage companies.

Jonathan Needell – President and Chief Investment Officer More Info

Jon Needell joined Redwood-Kairos in 2006 and has served as its Chief Financial Officer and Chief Operating Officer. Mr. Needell is currently President and Chief Investment Officer, responsible for overseeing acquisition and development underwriting and analyses, dispositions, and asset management. Mr. Needell also oversees all strategic and business planning, sourcing and structuring of construction, mini-perm, permanent debt, and joint venture equity financing, financial reporting, and lender and equity partner relations.

Kurt Altergott – Chief Financial Officer More Info

Kurt Altergott serves as Chief Financial Officer of Kairos. He is responsible for all facets of financial, strategic, and operational functions. Mr. Altergott is also involved with strategic and business planning, financial reporting, compliance, sourcing debt, joint venture equity financing, and lender and equity partner relations. Prior to joining the firm, Mr. Altergott was the Chief Financial Officer of MIG, a diversified investment advisor based in Newport Beach, CA where he was responsible for the sourcing and structuring of both the firm’s and for individual fund’s debt and equity raising efforts, risk mitigation and compliance, and lender and investor relations.

Percentage of Investment Professionals who are Women and/or Under-Represented Groups in Firm's Geographic Focus:
More than 50%
Percentage of Board Members who are Women and/or Under-Represented Groups in Firm's Geographic Focus:
25% – 50%

Financial Performance

Target Financial Returns Relative to Benchmark:
Market Rates
Actual Performance 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:
25% – 49%
Primary Impact Outcomes:
Providing housing
Secondary Impact Outcomes:
Addressing climate change and environmental issues
Increasing access to healthcare services and improving health
Value-added Services Offered:
Business and legal training
Financial literacy training
Health services

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:
The Impact Strategy only invests in assets providing affordable housing (or market-rate assets that are self-regulated by the fund to provide at least 20% of units at a 25% discount to the average unit price, rented to tenants below specified AMI levels.) In addition, the fund seeks to invest in assets that are well-positioned to run social programs.

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to investors and donors
Third Party Validations:
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing
None

Learn More

Key Contact Name: Camila Kremer
Phone: (949) 800-8054
Mailing Address:
30242 Esperanza
Rancho Santa Margarita, CA 92688

Ready for the next step?

Impact investments are investments made into organizations and funds that generate measurable social and environmental impact as well as financial returns.