BlackRock Impact Opportunities Fund
First-of-its-kind multi-alternatives strategy that enables clients to accelerate positive economic outcomes and create collective wealth for undercapitalized racial and ethnic groups, with particular focus on Black, Latinx, and Native American communities in the United States.
About the BlackRock Impact Opportunities Fund ("BIO")
Launched in 2021, BIO is a return-seeking fund that looks to uncover compelling investment opportunities in undercapitalized companies and communities. BIO aspires to change the way institutional capital flows to communities of color by collaborating with mission-aligned partners to accelerate the growth of high potential companies and projects.
BlackRock’s purpose is to help more and more people experience financial well-being. We designed BIO to pursue opportunities that have historically been undercapitalized and, as a result, may offer differentiated sources of return. We are committed to being part of the solution, and a force for change – on behalf of our clients, our employees, our shareholders, and our communities.
Larry Fink
CEO BlackRock
Portfolio
The BIO Fund takes a dynamic approach to addressing the issue of racial inequity through direct investments across alternative asset classes - Private Equity, Private Credit, Real Assets, and other niche private markets strategies and across sectors.
Eduardo Perez
Chief Customer Office
Tricolor Holdings
Vehicle ownership is fundamental for getting by in America. For decades, low income Hispanics have been challenged with access to affordable credit to purchase dependable transportation.
Title: A recent survey shows that 31.5% of Hispanic households have no mainstream credit compared to 14.4% of white households. Source: Federal Deposit Insurance Corp
Daniel Chu
Founder & CEO
Tricolor Holdings
Working with BlackRock, we’re expanding financial access and communities, by creating the leading technology-driven platform to provide inclusive and responsible credit to the underserved Hispanic consumer and empowering with physical and financial mobility. Since its inception in 2007, we have originative nearly 100,000 auto loans to credit-invisible borrowers, totaling over $1.6 billion.
Title: In putting our clients’ money to work in companies like Tricolor, we’re helping more people gain access to affordable transportation and build a better life.
BlackRock
Tricolor & the BlackRock Impact Opportunities Fund
Tricolor, a fintech company with a majority-diverse employee base, leverages proprietary AI-powered technology to sell and provide financing for high-quality, affordable used vehicles to underserved Latinx customers.
Acelero
Leading early childhood education platform
Industry: Education
Headquarters: New York, NY
Invested: 2022
Impact Theme(s): Education
Asset class: Private equity
Synergy Infrastructure
Diverse-owned & - led infrastructure solutions company
Industry: Industrial Machinery
Headquarters: Tampa, FL
Invested: 2022
Impact Theme(s): Financial Inclusion
Asset Class: Private Equity
Harvest at Marmalade
Multifamily asset alongside diverse-owned Ethos Real Estate
Industry: Commercial Real Estate
Headquarters: Manhattan Beach, CA
Invested: 2022
Impact Theme(s): Financial Inclusion
Asset Class: Real Estate
Retro Fitness Franchises
High-value, low-price fitness centers in diverse communities
Industry: Consumer Fitness
Areas of Operation: Texas, Florida, New York
Invested: 2022
Impact Theme(s): Healthcare, Financial Inclusion
Asset Class: Private Equity
Arboretum at Farmingville
Multifamily asset alongside diverse-owned BRP Companies
Industry: Commercial Real Estate
Headquarters: New York, NY
Invested: 2022
Impact Theme(s): Financial Inclusion
Asset Class: Real Estate
Tricolor Auto Group
Auto finance company focused on underbanked communities
Industry: Automobiles Retail
Headquarters: Dallas, TX
Invested: 2021
Impact Theme(s): Financial Inclusion
Asset Class: Private Credit
Investment Strategy
BIO aims to accelerate positive economic outcomes for undercapitalized racial and ethnic groups in the United States. We pursue opportunities that have historically been undercapitalized and, as a result, may offer differentiated sources of return. We combine a singular impact objective with a flexible, multi-alternative investment approach.
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Investment criteria
The fund focuses on direct investments in companies and/or projects. We combine a singular impact objective with a flexible, multi-alternative investment approach.
| Investment Size | Asset Class | Return Target | Geography |
|---|---|---|---|
| Up to $100 million Smaller investments may be contemplated on a programmatic basis. |
Multi-Alternative Private Equity, Private Credit, Real Estate, Infrastructure, and Niche/Other. |
Market Returns Expected risk-adjusted return will be at least commensurate with market returns. |
U.S. Investments Only |
Impact criteria
Investments must meet at least one of the below initial screens to be considered for the Fund. An impact thesis that is intentional, material, additional, and measurable is also required for each prospective investment to proceed through diligence.
| Criterion 1 | Criterion 2 |
|---|---|
| Businesses/projects founded, or led, by people of color | Businesses/projects that serve communities of color |
The fund focuses on a diverse range of themes that align with both impact and investment objectives. These core themes are not exclusive, and the fund will consider other expressions of impact.
- The BIO investment team applies the IMP framework to articulate and document how the proposed investment achieves the BIO impact objective, in a way that is intentional, material, additional, and measurable.
- For every investment, we identify key performance indicators (KPIs) that correspond to the impact objective, and measure and track these KPIs over the life of BIO’s investments. In selecting KPIs, we consult with established measurement frameworks such as GIIN IRIS+, or other relevant KPIs - including proprietary ones - to quantify and report on the impact.
- Finally, we identify and report when there is explicit alignment with global, industry recognized impact reporting frameworks.
Team
Pam Chan
Managing Director, Chief Investment Officer
Ladell Robbins
Managing Director, Senior Portfolio Manager
Brian Grossman
Managing Director, Head Product Strategist
Joseph Acevedo
Managing Director, Senior Portfolio Manager
Aarthi Sowrirajan
Director, Senior Portfolio Manager
Derrick Weatherspoon
Director, Senior Portfolio Manager
Brian Mwarania
Vice President, Junior Portfolio Manager
Susie Qian
Vice President, Junior Portfolio Manager
We are all in
At BlackRock, not only are we committed to our clients’ needs but also to the communities in which we operate. As investors, fiduciaries, and members of society, we believe it is our duty to combine our investment expertise with this focus to generate long-term prosperity. We are committed to being part of the solution. Reach out to learn more.
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