In September 2021, the FDIC encouraged the development of the Mission-Driven Bank Fund, a private capital investment vehicle to support insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs). As anchor investors, Microsoft and Truist Financial Corporation agreed to lead the investment fund and to hire a fund manager. In addition, Warner Brothers Discovery committed to join as a founding investor in the fund, bringing the combined initial commitment to $120 million, with additional investments expected. The fund seeks to improve mission–driven bank sustainability and build capacity and scale to enable these institutions to have a greater impact in the communities they serve.
On December 15, 2022, Calvert Impact and Elizabeth Park Capital Management announced they have been selected by Microsoft and Truist as the fund manager, and are teaming up to manage the fund that will invest in FDIC–insured MDIs and CDFIs through direct investment, market development, and other technical support services. Calvert Impact and Elizabeth Park Capital Management, along with subadvisors Strategic Value Bank Partners and West Potomac Capital LLC, were selected in a competitive process managed by Microsoft and Truist.
MDIs and CDFIs provide affordable financial products and services to individuals and businesses, stimulate economic and community development, and build opportunity and prosperity. Support for these institutions helps them build size, scale, and capacity — enabling them to have a greater impact in the communities they serve.
MDI and CDFI banks interested in learning more or submitting a proposal for support can send an email to: info@missiondrivenbankfund.org.
Learn more at www.missiondrivenbankfund.org.