Guarantee Design & Management

Addressing Risk to Drive
Social Impact

Now, more than ever, impact investors need innovative financial tools to support community prosperity and resiliency. Locus uses the power of guarantees to help investors and community lenders unlock mission-driven capital and strengthen investment ecosystems. 

Ready to Partner

Innovating to Fund
Community Prosperity Impact

Our Impact Investment Services team provides comprehensive support for the design and launch of credit enhancement funds, as well as guarantee deployment and program management. We partner with foundations and mission-driven investors to help them invest in sustainable growth in communities that expands economic opportunity for all.

Through the funds we manage, we help lenders and other organizations mitigate risk and deploy more high-impact capital to support small businesses and nonprofits, affordable housing development, energy innovation, and more.

$315M

total capital unlocked by Locus through guarantees

How We Can Help

Building and Sustaining
Community Impact

We’re always seeking partners who want to innovate together to catalyze high-impact investment. Our Impact Investment Services team leverages its experience with designing and managing guarantee programs to provide expert guidance and thought partnership to turn vision into reality. 

During the fund design process, we handle complex work like fund strategy development, lender engagement, market demand assessment, financial modeling, and the development of investment policies and procedures. 

After launch, we serve as program manager, enabling efficient and impactful deployment of credit enhancement to unlock more capital for communities. 

Partner with Locus to design or manage your fund

Our team can help you:

Fund Design

  • Lender Engagement and  Discovery 
  • Fund Impact and Credit Enhancement Strategy  
  • Fundraising and Investor Relations Support  
  • Structure and Modeling of Fund Capital Stack  
  • Fund Operations and Governance Structure                                                                            

Fund Management

  • Fund Pipeline and Enrollment
  • Transaction Structuring and Underwriting 
  • Financial Modeling and Risk Forecasting
  • Risk and Impact Data Reporting and Portfolio Management                                                                   

Our Impact

Guarantees in Action

Below are two examples of how we’re using guarantees to create deeper impact in communities across the country.

Unlocking Nationwide Impact

The Community Investment
Guarantee Pool

The Community Investment Guarantee Pool (CIGP) is a multi-investor fund with commitments from foundations and other mission-driven investors to offer guarantees and other credit enhancement tools to organizations—often CDFIs—to increase capital access for under-resourced communities. Locus serves as program manager of CIGP, which has issued nearly $40 million in guarantees and unlocked an expected $287 million for community projects across the small business, affordable housing, and clean energy sectors.

Learn more about CIGP

Guarantees Going Local

The Kansas City
Credit Enhancement Fund

We partnered with the Ewing Marion Kauffman Foundation and the Kansas City Chamber of Commerce to develop the Kansas City Credit Enhancement Fund (KCCEF). The $9 million fund, which Locus manages, creates greater access to capital for small businesses in the Kansas City metro area by providing incentives for banks, CDFIs, and other lending institutions to invest in businesses owned and operated by entrepreneurs in low- and moderate-income neighborhoods.

Learn more about KCCEF