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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

Huntington Capital

Total Assets Under Management: $100 – 249MM
Asset Class: Private Debt - Absolute Return / Notes, Private Equity
Geographic Focus:
Impact Investment Focus:
Clean Technology
Nutrition, Health and Wellness
Fair Trade
Education and Charter Schools
Natural Resources and Conservation
Water and Sanitation
Media, Technology and Mobile
Sustainable Agriculture
Small and Medium Business Development
Microfinance/Low-Income Financial Services/Micro-insurance

Firm Overview

Category: (None)
Founded in 2000, Huntington Capital is a private equity firm focused on the lower middle market with a mission to generate top quartile returns while having a positive impact on underserved businesses and their communities. Huntington works with portfolio companies to provide access to capital in underserved communities and companies, provide good quality jobs that pay living wages with employee benefits, encourage gender and ethnic diversity across the portfolio workforce and create gateway jobs into the workforce for residents of low to moderate income "LMI" areas. Huntington provides capital to "underserved" businesses that tend to employ a workforce that earns LMI wages, are located in LMI zones or underserved communities, and/or are owned and operated by ethnic minorities. The strong performance of our predecessor Funds and ability to show demonstrable impact has allowed Huntington to raise Fund III which will continue to execute its well established successful plan of operations and maintain a similar impact focus.
Firm Headquarters: US & Canada
Years of Operation: More than 10 years
Total Assets Under Management:
$100 – 249MM
Total Number of Investors: More than 25
% of Capital from Top 3 Investors: Less than 25%
Investment Thesis:
The Fund primarily provides growth capital, structured as Mezzanine Debt and/or Preferred Equity to small businesses the key drivers of employment creation across the US. Our mission is to provide lower middle market growth companies with the capital and value added resources to help optimize company performance, increase enterprise value and provide above market returns to our limited partners while having a positive impact in the communities in which we invest, while limiting risk through disciplined underwriting and structured investment terms. The Fund's investment thesis was developed as a result of the background of the team in building a firm that would not only provide access to capital to underserved companies, but also provide good quality jobs with employee benefits through its portfolio companies for LMI employees, create jobs in underserved communities – thereby supporting a diverse workforce of LMI individuals and families.
 
Investment Overview:
(None)

Investment Example

Native Foods Café "Native", is a vegan/vegetarian fast-casual restaurant, serving authentic, chef-crafted recipes, utilizing house-made and organic ingredients, all uniting both vegan/vegetarians and non-vegetarian diners alike since its founding in 1994. The Cafés menu from drinks to dessert is made from scratch using healthy fresh ingredients. The company practices sustainable operations utilizing packaging products made from green materials. Huntington's investment positions Native for aggressive growth and the capital will be used to open 12-15 new locations across the U.S with each location creating on average 30 jobs driving significant job creation in many low to moderate income communities. The Company currently employs 555 employees across 15 locations up 19% from 466 employees approximately 12 months ago and the onboarding of 12-15 new locations will increase the workforce by approximately 450 employees for a staff complement of approximately 1005 within 12-15 months. In addition the investment allows the restaurant to bring inexpensive healthy food options across the nation.

Leadership and Team

Cumulative Leadership Experience in Investing:
More than 30 years
Cumulative Impact Experience of Top Three Firm Leaders:
10 – 20 years
Morgan Miller – Managing Partner More Info

Morgan Miller is a co-founder of Huntington Capital and has served as a Managing Partner since the firm’s founding in 2000. Over the past 25 years he has worked in mezzanine lending, equity investing, international banking and capital markets,financial management, strategic planning, finding solutions to troubled assets and has served on boards of various growing companies. His positions include senior vice president and regional manager for Rancho Santa Fe National Bank, and senior vice president responsible for strategic planning for Great American Bank, a $15 billion savings bank. He also worked for 10 years in international banking where he was Senior Credit and Marketing Officer responsible for all lending for Bank of America operations in Puerto Rico and the U.S. Virgin Islands. Miller has extensive workout experience and has been responsible for restructuring over $200 million in problem loans. He has been a consultant to various businesses in southern California including serving as CFO for a wireless technology company and a direct marketing life insurance company.

Tim Bubnack – Managing Partner More Info

Tim Bubnack joined Huntington Capital in June 2007 and has more than 17 years of lending, technology investment and financial experience. Prior to joining Huntington, Tim spent five years with Silicon Valley Bank as Managing Director of commercial banking activities in the San Diego region where he managed early stage and middle market banking relationships in the technology, communications and biomedical industries. Prior to joining Silicon Valley Bank in 2002, he served in senior executive positions at Comerica Ventures, Inc. and Comerica Capital Advisors where he was responsible for identifying and assessing direct equity investments and investments in venture funds. Tim also made loans in partnership with the Technology and Life Science Division of Comerica Bank. At Comerica Bank he was part of the founding team of the company's Southern California Emerging Growth Division.

Frank Mora – Principal More Info

Frank joined Huntington Capital in February 2013, and is responsible for originating, structuring, closing and monitoring portfolio investments. Prior to joining Huntington Capital, Frank was with DBI Capital, a Southern California based lower middle market private equity buyout group. Frank joined DBI in 2006 where he was responsible for sourcing and structuring investment transactions, including co-investments into two Huntington portfolio companies. Before joining DBI, Frank was a Vice President in the Fixed Income Capital Markets team at Citigroup specializing in Private Placements. Prior to joining Citigroup, he was an officer in the Venture Capital team within the Economic Development Bank for Puerto Rico.

Hope Mago – Senior Associate More Info

Hope joined Huntington Capital in May 2009. Hope participates in the origination, analysis of new investment opportunities, investment due diligence, deal underwriting and investment monitoring. Prior to joining Huntington Capital, Hope worked as an Analyst at the Reserve Bank of Zimbabwe, where he was involved in economic policy formulation, lending due diligence for export ventures receiving funding through the Exchange Control Division. Before that he spent a year interning at First Mutual Limited, the second largest life insurance and money manager in Zimbabwe. He earned an MBA from the University of San Diego and holds a bachelors degree in finance and banking from the University of Zimbabwe.

Nicolas Lopez – Senior Associate More Info

Nicolas joined Huntington Capital in June 2013, and is responsible for originating, structuring, closing and monitoring portfolio investments. Prior to joining Huntington Capital, Nicolas was with Best Buy, Inc. in their corporate development group. Nicolas joined Best Buy in 2010 where he helped identify, evaluate and support early stage investment opportunities. He was also very involved with strategic initiatives at Best Buy, working with various cross-functional business groups to drive shareholder value. Before joining Best Buy, Nicolas worked in investment banking and investment management. Nicolas attended San Diego State University, earning a B.S. in Business Administration, and the University of Southern California, earning an M.B.A. He is also a CFA charterholder.

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:
More than 50%

Financial Performance

Target Financial Returns Relative to Benchmark:
Above Market Rates
Actual Performance Relative to Target Financial Returns in the Past Three Years:
Over-delivered compared to initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
75% – 99%
Primary Impact Outcomes:
Alleviating poverty
Conserving land, ecosystems and natural resources
Creating jobs
Increasing access to education and improving educational outcomes
Increasing access to financial services
Increasing access to healthcare services and improving health
Increasing access to water and sanitation
Other: retention and creation of good quality jobs in underserved communities, workforce diversity
Value-added Services Offered:
Access to markets
Business and legal training
Financial literacy training
Technology training
Health services
Education services

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:
The Fund screens all investments for additional ancillary benefits beyond just job creation during the diligence period. Our due diligence process includes an impact survey from Huntington that a portfolio Company must fill out and submit during the diligence process. This survey looks for impact in a number of areas including workforce diversity, job creation, employee wages, employee areas of residence, does prospect qualify as a small business under SBA guidelines, will firm create a significant number of jobs the majority of which will be for LMI workers. In addition the Fund works with GIIRS to screen prospects in diligence for impact. GIIRS has developed a simple quick assessment that the prospect company will respond to during the diligence phase. The survey's are sent out soon after a term sheet is signed and are a key part of our due diligence process.

Investments systematically include social and environmental sustainability practices in the due diligence process:
Huntington Capital Impact Investment Themes focus on small business financing and the retention/creation of good quality low to moderate income level jobs that pay a living wage with employee benefits . As part of our due diligence process we consider the following
  • (i)Does the Company provide for upward career mobility for LMI employees and previously excluded populations
  • (ii) Does the Company focus on workforce diversity including ethnic minorities/women owned businesses/ previously excluded populations
  • (iii) Does the Company provide employees with wealth creation mechanisms including retirement savings plan, stock option schemes, bonus plans, 401k's and the quality of workforce earnings
  • (iv) Does the Company provide its employees with financial literacy classes including budgeting, managing debt, credit card debt counselling.
For example when looking at the Native Foods investment we diligenced diversity across the workforce, firm sustainability practices, if the Company had programs in place for employee development and skills development in addition to our normal impact screen

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes - on regular basis (annual or quarterly)
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

Learn More

Key Contact Name: Tim Bubnack
Phone: (858) 259-7654
Mailing Address:
3636 Nobel Drive #401
San Diego, CA 92122

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