Forms of Investment
Investment by the Fund may take the form of mortgages, participating mortgages, loan guarantees, letters of credit, revenue participation certificates, equity investments, or combinations thereof. Investments are structured to provide a return to the Fund over the life of the investment that is consistent both with the goals of the Fund and the specific needs of the projects. The Fund offers creative financing terms and seeks to share in the returns when projects are successful.
Every investment by the Fund includes an exit strategy to ensure capacity for investment in future projects and for the ultimate liquidation of the Fund in accordance with its termination provisions.
The Fund’s investments typically require recourse to at least one financially responsible party. The Fund may accept a security interest subordinate to that of another source of private financing.
The Fund does not seek management control over the projects in which it invests.
The Fund seeks to serve as a link between public and private organizations, helping them to meet collective goals and objectives and to respond to a wide variety of stakeholder needs and interests.