Kachuwa Impact Fund is a unique impact investment, appealing to both newer and seasoned investors. From the ground up, impact is the essence of organization, mission and fund.
Built for Impact
Kachuwa Impact Fund (pronounced KAW-choo-wuh) is an investment cooperative and public benefit corporation. Kachuwa’s primary business activity is owning and operating “impact real estate,” and its secondary business activity is investing in privately held “impact companies.”
Key features
- Organizational structure: Investor Cooperative and Public Benefit Corporation.
- Investment targets & diversification: Impact Real Estate and Impact Companies (including through other funds) in the US.
- Democratizing investing: 1 member – 1 vote, financially accessible with lower investment minimums than most private funds (allows for non-accredited investors with demonstrated investor experience).
- Fund structure: Evergreen – focused on long term returns, duration of investment not restricted to a typical 10-12 year fund life.
- Tax and distributions: Investors receive an annual 1099 instead of a k1. Distributions are done in the form of a patronage dividend based on the cooperative’s income.
- Team and leadership: Seasoned professionals led by Blake Jones, founder of four cooperatives including Namaste Solar.
- Recognitions: ImpactAssets’ IA50 2022, Integrated Capital Investing’s The Transformative 25 for 2022
Democratic
As a cooperative, Kachuwa is democratically owned and controlled by its members. By design, at least 60% of Kachuwa’s assets are real estate and no more than 40% of its assets are investments. Kachuwa is an open-ended, “evergreen” fund, and it is similar to a Real Estate Investment Trust (REIT) combined with a mutual fund whose diversified holdings have a positive impact on society and the environment.
The Investment Goal
Create positive impact while earning reasonable, non-extractive returns for its members. It does not maximize financial return at any cost. Consequently, Kachuwa’s investors tend to be people who are seeking private investment opportunities that prioritize social and environmental impact rather than the short-sighted, bottom line focus for which Wall Street is known.
Why?
Our economy, society, and environment benefit when private impact companies have control over their respective missions and when investors include private impact investment in their diversified portfolios.
Mission
- Operate for the holistic benefit of its members and all of its stakeholders rather than for profit maximization.
- Provide privately held impact companies with mission-aligned, long-term, and non-controlling capital.
- Provide both accredited and non-accredited investors with diversified, impact investment opportunities outside of Wall Street.
- Own and operate impact real estate that supports impact companies, non-profit organizations, and small businesses.
Checking a lot of boxes
Kachuwa Impact Fund checks a lot of boxes with their uniqueness. Visit their website https://www.kachuwaimpactfund.com/ to learn more:
- What is a Cooperative PBC?
- What is an impact company?
- What is impact real estate?
- Investment Portfolio
Disclosure: I have been making impact investments for 14 years and am a current proud investor in the Kachuwa Impact Fund. This article is for informational purposes only. I am continually grateful to the people and organizations that help grow my own awareness of impactful organizations making the world a better place through investing.