Location: Washington, DC or New York, NY
About the Position:
One of Living Cities’ key program areas is Capital for the New Majority (CNM). In the context of closing racial income and wealth gaps, CNM seeks to drive more capital and resources to entrepreneurs and fund managers of color. Functionally, CNM consists of a field-building program, as well as two impact investment funds. Having multiple tools at its disposal allows the CNM team to constantly innovate – by developing new hypotheses and theories, testing those ideas, learning from what has and has not worked, and sharing those lessons with the broader field.
In order to accelerate the adoption of innovative financing for the benefit of people of color and the cities in which they live, Living Cities has been making impact investments for more than a decade. These investments have largely been made out of two structured debt funds capitalized by 15 institutional investors, the majority of whom are Living Cities’ members. The Catalyst Fund (LCCF), a $38 million structured debt fund closed in 2008, is in the final stages of its fund life cycle, has returned capital to its investors, and is in the process of winding down its operations. The Blended Catalyst Fund (BCF) is a $37 million fund focused on closing the racial wealth gap by supporting the development of jobs, income and wealth for people of color. The BCF achieved its final close in December 2016 and is expected to be fully deployed by the end of Q1 2021.
Living Cities currently has a growing fund management team that reports to the Managing Director of Capital for the New Majority. This is an exciting opportunity for a technically inclined individual who is passionate about working with borrowers through all stages of the financing process and deeply committed to using capital to create better outcomes for founders of color. We refer to borrowers, loans, and debt. However, we have and will likely continue to make debt and equity investments. For ease of understanding, we refer to borrowers, loans and debt as a proxy for all investment types in this document.
The Investment Manager will support the Living Cities’ Catalyst Funds and future investment vehicles by actively managing their portfolio and working with borrowers through all stages of the financing process, e.g., facilitating the sourcing, closing, post-closing monitoring, disbursement, servicing and reporting of impact of individual investments of the Funds. The Investment Manager will work closely with key members of the investment team and will report to the Fund Manager and be supported by one or more Investment Associates. The Investment Manager may also act as a technical resource to junior staff in the department.
- Investment underwriting:
-Manage the underwriting function including all aspects of borrower due diligence.
-Spread borrower financials and provide historical analysis of strengths and weaknesses in order to assess capacity for new debt. Focus on the “why” behind the #s and identify areas that need clarification and further explanation from borrower.
-Analyze budgets, test assumptions behind cash flow projections, and create appropriate deal-specific sensitizations and scenarios that stress test debt service capacity.
-Perform analysis of borrower operations, programs, management, and evaluate historical and projected social impact.
-Perform thorough risk assessment, using both organizational and environmental factors. Identify potential risks/mitigants. Assess likelihood of repayment sources.
-Proactively flag risks, raise issues and propose possible solutions.
-Prepare due diligence questions for borrowers and, if relevant, lender partners, throughout underwriting. Incorporate responses and track additional follow up as needed.
-Make appropriate loan structuring and approval recommendations together with the Fund Manager
-Maintain thorough and organized client documents and underwriting due diligence checklists.
- Asset management:
-Monitor borrower relationships for borrower needs or difficulties.
-Analyzing loan performance against underwriting projections to identify problem investments, recommend collection strategies and action plans
-Mitigate loan portfolio risk through coordination of post-closing technical assistance, extensions, restructurings and work-outs.
-Increase, extend, modify and restructure loans as needed.
-Participate in annual risk rating reviews
- Business development and client management:
-Assist in sourcing and deal origination of primary investments, secondary transactions, and direct investments
-Actively maintain and cultivate relationships with new and existing borrowers and financial partners.
- Learning and storytelling
-Supporting Living Cities goals to synthesize lessons from our impact investing portfolio and share with key decision makers in the fields in which we work (including philanthropy, impact investing, community and mission-driven lending, community economic development, and urban public policy)
- Four year degree or equivalent; advanced degree a plus, but not required
- A minimum of 5 years’ work experience in lending and/or equity investments including asset management, credit analysis, and investor relations.
- Proficiency in analyzing complex financial statements of for-profit and nonprofit organizations and their operations
- Knowledge of business law including contracts, loan collateral, creditor’s rights and forms of business organization and ability to review and negotiate loan documents
- Knowledge of urban policy and the issues affecting communities of color in U.S. cities
- Excellent analytical skills, combined with demonstrated ability to synthesize and clearly communicate complex issues
- Excellent Excel skills
- High level of organization and attention to detail
- Excellent writing and verbal presentation skills
- Limited travel (approximately 10% of time)
- Superior interpersonal skills, ability to manage and work in teams, interacting constructively with diverse constituents
- Highly energetic, creative problem solver exhibiting deep commitment and passion for Living Cities’ mission
- The ability to collaborate across roles and locations
Racial Equity & Inclusion (REI):
- Foundational knowledge and core concepts
- Understands why racial equity is an integral part of Living Cities’ approach, inside and outside the organization
- Displays clear willingness to learn and apply REI history and concepts REI Practice and Analysis
- Engages with curiosity, humility and openness in discussions about race, equity and power inside and outside of the organization
- Understands how the construct of race has impacted the distribution of power and resources, and recognizes its impact on current and future outcomes across systems
Salary is competitive and commensurate with experience.
This job operates in a professional office environment.
The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job.
While performing this job, the employee must be able to remain in a stationary position at least 50% of the time. Additionally, they may require movement around the office to access files or other equipment. As collaboration and communication is a large part of our work, the employee must also be able to accurately exchange information in these situations, whether virtually or in person.
We will work to provide reasonable accommodations as needed.
This is a full-time exempt position.
Travel is primarily local during the business day, although some out-of-area and overnight travel may be expected.
Living Cities is committed to building a culturally diverse and inclusive team at all levels. We are an equal opportunity employer and provide opportunities to all employees and applicants for employment and prohibits discrimination and harassment of any type without regard to race, color, religion, age, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, gender identity or expression, or any other characteristic protected by federal, state or local laws.
This policy applies to all terms and conditions of employment, including recruiting, hiring, placement, promotion, termination, leaves of absence, compensation and training.
Please note this job description is not designed to cover or contain a comprehensive listing of activities, duties or responsibilities that are required of the employee for this job. Duties, responsibilities, and activities may change at any time with or without notice.