BlackRock Impact Opportunities
About BlackRock Impact Opportunities ("BIO")
Launched in 2021, BIO is a return-seeking strategy that looks to uncover compelling investment opportunities in undercapitalized companies and communities. BIO aspires to change how 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.
Portfolio
The BIO strategy 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.
Acelero & BlackRock Impact Opportunities
Acelero, an early childhood education platform, supports the growth and development of head start education centers across the United States. Since 2001, the company has been transforming childhood education and producing break-through learning gains to close the achievement gap for children of color.
MACRO
Industry: Media & Entertainment
Headquarters: Los Angeles, CA
Invested: 2022
Impact Theme(s): Inclusive Media, Financial Inclusion
Asset Class: Private Equity
Acelero
Industry: Education
Headquarters: New York, NY
Invested: 2022
Impact Theme(s): Education
Asset Class: Private Equity
Synergy Infrastructure
Industry: Industrial Machinery
Headquarters: Tampa, FL
Invested: 2022
Impact Theme(s): Financial Inclusion
Asset Class: Private Equity
Harvest at Marmalade
Industry: Commercial Real Estate
Headquarters: Manhattan Beach, CA
Invested: 2022
Impact Theme(s): Financial Inclusion
Asset Class: Real Estate
Retro Fitness Franchises
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
Industry: Commercial Real Estate
Headquarters: New York, NY
Invested: 2022
Impact Theme(s): Financial Inclusion
Asset Class: Real Estate
Tricolor Auto Group
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.
Investment criteria
BIO 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 BIO. 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 strategy focuses on a diverse range of themes that align with both impact and investment objectives. These core themes are not exclusive, and the strategy will consider other expressions of impact.
Impact
BIO’s singular impact objective is to accelerate positive economic outcomes and create collective wealth for undercapitalized racial and ethnic groups. We utilize the Impact Management Project (“IMP”)’s Dimensions of Impact framework to evaluate whether and how each proposed investment advances BIO’s impact objective.
- 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.