Crossroads Impact Corp Announces $180 Million Equity Investment from Funds Managed by P10 and Conversant Capital and Expanded Relationship with Enhanced Capital Group to Accelerate Growth
The company is also finalizing a new $150 million credit facility, securing sufficient capital to deploy across existing and new verticals.
Enhanced Capital Group and Crossroads to focus relationship on credit investments in climate finance, impact real estate and small business lending to underserved communities
Increased step of scaling sets to assess possible listing
DALLAS, July 11, 2022 (GLOBE NEWSWIRE) — Crossroads Impact Corp (OTCQX: CRSS), the parent company of leading Community Development Financial Institution (CDFI) and Certified B Corp, Capital Plus Financial, announced the expansion of its strategic relationship with Enhanced Capital Group LLC (“ECG”), the impact investment solution of P10, Inc. (NYSE: PX) and a new strategic investment from Conversant Capital LLC (“Conversant”).
Investment funds managed by P10 and managed by Conversant are investing a total of $180 million in equity in Crossroads at $10.76 per share, with the ability to commit up to an additional $310 million in equity at the same price within the next 120 days. This expanded relationship will increase the scope of capital deployment, previously established through a late 2021 advisory agreement, for Enhanced Capital to issue loans on behalf of Crossroads that positively impact communities across the United States by enriching their economic vitality. Specifically, Crossroads plans to increase its capital allocation to key ECG verticals of climate finance, real estate impact, and small business lending to underserved businesses.
Crossroads completes a new $150 million credit facility led by Texas Capital Bank (“Texas Capital”), which is attractively priced at BSBY +300 basis points. This facility builds on the existing relationship with Texas Capital, a bank dedicated to providing capital to underserved areas.
With the combination of fresh equity and attractively priced debt capital, Crossroads believes it is well positioned to continue its extensive ECG impact lending pipeline, which is already approaching $500 million, and is expected to offer shareholders an attractive return on investment. Additionally, the additional scale will allow Crossroads to better position Crossroads to explore a public going public on a national stock exchange, where the company believes its proven track record of positive impact and strong credit performance would present a differentiated value proposition and attractive to ESG-conscious investors.
“Priorizing underserved communities and disadvantaged populations is at the heart of what we do,” said Eric Donnelly, CEO of Crossroads Impact Corp. “Crossroads is grateful to have incredible partners like P10, Enhanced and Conversant who have brought transformative capital and a proven track. impact record on a platform that will positively affect the lives of thousands of people.
“We are excited to expand our partnership with Crossroads to provide access to much-needed capital to underserved communities to catalyze growth and positive impact,” said Michael Korengold, President and CEO of Enhanced Capital Group. “Our shared mission to inspire community development is the primary driver of this program and has been the foundation of Enhanced Capital since its inception. Enhanced Capital looks forward to creating additional economic vitality and strengthening community development across the country with Carrefour on an even larger scale. »
Michael Simanovsky, Founder and Managing Partner of Conversant, said, “In today’s market environment, impact-focused specialty finance firms with deep industry experience, proven business models and scalability, such as Crossroads, have an incredible opportunity ahead of them to deploy capital into large, underserved markets with attractive financial and credit characteristics. We are proud to partner with Crossroads and Enhanced to seize this opportunity and build the leading impact-focused specialty finance company in the United States, which we believe will bring value to our investors, shareholders of Crossroads and P10, and to underserved communities across the country. .”
“This partnership offers compelling benefits to all stakeholders by providing additional capital for Crossroads to deploy in socially beneficial and financially attractive investments and accelerate its growth into a specialist finance platform focused on large-scale impact. scale,” said Clark Webb, co-CEO of P10. “Importantly, this also represents a new, permanent capital vehicle for P10, and we are grateful to investors for entrusting us with the deployment of capital on behalf of a unique, socially and environmentally beneficial enterprise.”
P10 is a leading provider of multi-asset class private markets solutions in the alternative asset management industry. P10’s mission is to provide its investors with differentiated access to a wide range of investment solutions that meet their diverse investment needs within private markets. As of March 31, 2022, P10 has a global investor base of more than 2,500 investors in 49 states, 53 countries and six continents, which includes some of the largest pension funds, endowments, foundations, retirement plans companies and financial institutions in the world. For more information on P10, please visit www.p10alts.com
About Crossroads Impact Corp:
Crossroads Impact Corp (OTCQX: CRSS), Crossroads Impact Corp’s mission is to promote economic vitality through community development and equitable access to capital; harness the power of good to address systemic issues within underserved communities. Building on our history of serving minority people and small businesses through responsible and environmental social lending, we seek to be the leader in providing innovative and sustainable lending solutions.
For more information about Crossroads Impact Corp, please visit www.crossroads.com
About Enhanced Capital Group, LLC:
Enhanced Capital Group, LLC is a leading impact investment firm with over 20 years of experience investing in small business lending, impact real estate and climate finance.
From its inception in 1999 through December 31, 2021, including proprietary assets and assets managed by affiliates, Enhanced Capital has raised a total of $4.8 billion. Of total AUMs, impact assets represent $2.6 billion invested in more than 700 projects and companies in 38 states, Washington DC and Puerto Rico and do not include investments made by non-impact affiliates.
For more information on Enhanced Capital, please visit www.enhancedcapital.com
About Conversant Capital
Conversant Capital LLC is a private investment advisor founded in 2020. The firm pursues credit and equity investments in the real estate, digital infrastructure and hospitality sectors in both public and private markets. Further information is available at www.conversantcap.com.
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There can be no assurance that the ECG Impact Loans will be implemented on the terms intended, or not at all, or if implemented, whether their performance will be consistent with past performance levels. There is also no assurance as to Crossroads’ ability to obtain leveraged financing on terms it deems reasonable, if at all. Any failure of any part of this investment program by Crossroads could have a material adverse impact on Crossroads’ ability to generate its additional pre-tax return on common equity.
CONTACT: For Crossroads Investor Relations and Media Contact: dovetail solutions Andy Boian [email protected] 415-404-2539 P10 Press and Investor Contact: [email protected]