The Bay Area Equity Fund: A Double Bottom Line Fund (“Fund”) is a private venture capital fund whose goal is to invest in companies that generate both market rate returns and positive social and environmental returns and that are located in or near one of a number of targeted low-income neighborhoods in the Greater San Francisco Bay Area. Social and environmental returns include jobs for residents of targeted low-income neighborhoods, health benefits, opportunities for advancement and promotion and wealth creation assistance for these employees, environmentally-friendly business practices, and related benefits for the neighborhood where the company is located.
The Fund has raised $75 million in capital from major banks and insurance companies, national foundations, corporations, and private individuals. The Fund is managed by JPMorgan H&Q, a highly experienced fund manager, and an affiliate of JPMorgan Chase Bank.
The Fund is structured in two-tiers. The first tier, Emerging Growth, invests in companies that typically need from $3 million to $5 million in equity investments. The second tier, Strategic Equity, invests in smaller companies that need up to $1 million in equity investments.
See Investments for more information about the Fund and investment criteria.
The Fund is one of two funds currently under the umbrella of the Community Capital Investment Initiative and the Bay Area Family of Funds. In addition to the Bay Area Equity Fund: A Double Bottom Line Fund, the Bay Area Family of Funds includes:
- Bay Area Smart Growth Fund II – a mixed-use real estate development investment fund
Both funds are focused on making investments in the identified low-income neighborhoods.
The Bay Area Council sponsors the Bay Area Smart Growth Fund, and, with the Alliance for Community Development, co-sponsors the Bay Area Equity Fund.
The Bay Area Council also coordinates activities of the members of the Bay Area Family of Funds and encourages members of the Bay Area’s investment and banking community to participate in attractive business, real estate, and environmental remediation investment opportunities through the Bay Area Community Investment Network (BACIN), a Bay Area Council organization. More information on BACIN can be found at www.bacin.org.