Fund Highlights: Equalize Community Development Fund and AHOMe Fund

Both of Equalize Capital’s CRA funds seek to deliver competitive financial returns while making investments that benefit US Small Business and under-banked borrowers across the country.

The investment process typically begins with an in-depth conversation with potential fund buyers and the Equalize Funds Managers, where we try to gain an understanding of the investment and CRA needs of the investor. We follow these discussions by providing a complete package of due-diligence documents describing the funds, applications for the funds, and a guide to completing the applications. We also provide information on the investment advisor, Equalize Capital LLC.

Prioritizing Our Communication, Especially in Times Like These

Investors in the funds (ECQDX and AHOMe) offered by Equalize can expect to receive regular periodic account statements detailing the performance of the fund, the NAV or capital account balance, and any dividends or distributions. The monthly and quarterly statements are typically delivered within the first 1-3 days after month-end.

During times of turbulence, such as the recent jump in interest rates in the first half of 2022, our portfolio managers try to provide an extra level of communication to investors, explaining our view of the market and how it might affect investment in our funds. This occurs through email updates and/or investor letters sent to all investors. It is our intention to make such messages a regular part of our communication activities.

Why Do Investors Choose Equalize Funds Over Other Options?

The assets in our funds provide attractive yields and low credit risk. Both our funds have a solid record of providing good returns relative to competing CRA investments. In fact, neither fund have had any defaults to date.

It is important to note that the returns on CRA investments vary over time and in different economic environments. A CRA investment that outperforms in the current environment may do very poorly when interest rates change over course of the economy moves in another direction. Still, our view is that Equalize’s CRA funds offer better return prospects than most other investments designed to provide CRA benefits.

Additionally, both funds offer investors the opportunity to have specific loans assigned through side letters, allowing loans within a bank’s assessment area to be assigned for CRA purposes. Through this means, the EQCDX has demonstrated a history of providing either lending test or investment test credit to bank investors. We expect that AHOMe, our newer fund, will provide a similar level of CRA credit.

Measuring the Impact of Our Funds As of August 31, 2022:

EQCDX Fund stats since inception:

  • Total loans #: 78
  • Total loans $: $113.1 million
  • Jobs Created: 560
  • Jobs Retained: 528
  • Women-Owned Businesses: 24
  • Minority-Owned Businesses: 17
  • Loans in LMI Census Tracts: 22.2%

AHOMe Fund stats since inception:

  • Total loans #: 121
  • Total loans $: $24.9 million
  • Borrowers in LMI Census Tracts #: 38
  • Borrowers in LMI Census Tracts %: 26.0%
  • LMI Borrowers #: 50
  • LMI Borrowers %: 34.1%