NEW YORK & ARLINGTON, Va.--(BUSINESS WIRE)--Annaly Capital Management, Inc. (NYSE:NLY) and Capital Impact Partners jointly announced the launch of a new $25 million joint venture dedicated to supporting community development in underserved cities across the country. An innovative structure in the mortgage REIT sector, the collaboration provides direct financing for socially responsible projects in low-income communities while simultaneously enabling Capital Impact’s ability to further expand its work nationally.
“We are pleased to announce this unique joint venture that enables Annaly to further our involvement in community development and social responsibility efforts while continuing to diversify the sources of our returns for shareholders” Kevin Keyes, Annaly’s CEO and President commented. “Combining Annaly’s permanent capital with the expertise and 30-year track record of Capital Impact Partners helps further the mission of strengthening the links between health, education and housing in underserved communities.” Keyes added, “This joint venture also continues our growth strategy of partnering with best-in-class industry leaders enhancing cost efficiencies and returns across our diversified investment platform.”
“This represents the first time Capital Impact has raised equity through a joint venture as a means to expand our social impact. We are excited to work with Annaly to launch this project,” said Ellis Carr, CEO and President of Capital Impact. “As a mission-driven organization, it is critical we have the ability to be nimble in meeting the needs of communities. Only by working with forward-thinking partners like Annaly, can we continue to ensure equitable access to capital for projects serving low-income communities.”
Annaly and Capital Impact have created the joint venture to invest in loans that are cash flow generating, seasoned assets currently owned by Capital Impact. The investments targeted for this venture represent a diverse mix of projects within the social impact investing landscape which span communities across the country. The venture intends to make investments over a five-year period and Annaly and Capital Impact have the option to increase their overall investment as the venture matures.
About Annaly
Annaly is a leading diversified capital manager that invests in and finances residential and commercial assets. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to preserve capital through the prudent selection of investments and continued management of its portfolio. Annaly has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Annaly is externally managed by Annaly Management Company LLC. Additional information is available at www.annaly.com.
About Capital Impact Partners
Through capital and commitment Capital Impact Partners helps people build communities of opportunity that break barriers to success. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate-income individuals have access to quality healthcare and education, healthy foods, affordable housing, and the ability to age with dignity. A nonprofit community development financial institution, Capital Impact Partners has disbursed more than $2 billion to revitalize communities over the past 30 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a “AA” rating from S&P Global and being recognized by Aeris since 2005 for our performance. Headquartered in Arlington, VA, Capital Impact operates nationally, with local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.
