Impact Investing

HCAP Partners' Impact Investing Snapshot (PDF)

HCAP Partners' Impact Investing Snapshot (PDF)

HCAP Partners was founded in 2000 with a mission to generate top quartile returns while having a positive impact on underserved businesses and their communities. HCAP has a strong history as an impact fund, having been recognized by the Impact Assets 50 as one of the top 50 impact funds worldwide for four consecutive years.  HCAP is also a founding Global Impact Investing Network member. 
 
HCAP provides capital to “underserved” businesses that (i) tend to employ low-to-moderate income and ethnic minority employees (ii) are located in LMI zones and/or (iii) owned and operated by ethnic minorities.  Our approach to impact is operationally focused and based around creating high quality jobs and improving job quality standards at our portfolio companies using an internally developed framework called The Gainful Jobs Approach. Through this framework, we measure job quality standards at time of investment and work with portfolio company leadership to build and implement strategic roadmaps with the intent of improving job quality.  We believe high quality jobs increase employee engagement and reduce turnover among other benefits, thereby improving overall performance. 

The majority of the capital we invest (70%+) is in the form of growth capital which often facilitates job growth at the portfolio company.

No. of Employees (as of 3/31/2017)

Jobs Created (from investment to exit or 3/31/2017)
 

Why Investing In Quality Jobs Matters

The country’s distressed zip codes are plagued by poverty, joblessness, and a deep and ongoing recession.

"Instead of lifting distressed communities, the recovery has left them and their residents even further behind. And once distress sets in, it seems to persist: even the country’s most dynamic and successful cities struggle to achieve geographically equitable prosperity. So, what can be done? There are numerous factors to be addressed, but the lack of businesses and jobs in distressed zip codes—indeed, their declines amidst national expansion—stand out as particularly urgent. As noted above, the very communities hit hardest by distress are often the least capable of reversing their declines due to a cascading loss of businesses, jobs, investment, and tax base."

Source: The 2016 Distressed Communities Index by the Economic Innovation Group.
Note: A zip code is considered distressed if its distressed score falls within the highest 20%.
 

Affiliations:


Shaping the Impact Investing Landscape

We continue to participate in shaping the emerging impact investment asset class through involvement in industry organizations, and contributions to research studies and leading publications.  HCAP’s impact investing initiatives have been recognized by a number of leading universities.  HCAP was featured in case studies at both Harvard Business School and Stanford Graduate School of Business.  HCAP was also invited to speak on an impact investing panel at Columbia Business School.