On November 8, 2022, Arctaris Impact Investors, LLC announced a recent investment from Bank of America (BofA) into the Arctaris Opportunity Zone Fund 2022.
The investment will help spur a new Arctaris place-based investment program focused on the greater Hartford, Connecticut area with emphasis on diversity, equity, inclusion, and community revitalization.
BofA’s investment will anchor the Arctaris Connecticut program, along with forthcoming investments from other leading corporations and financial institutions in the region.
The investment program, which Arctaris anticipates will exceed $25 million, will support revitalization projects in Hartford’s urban core.
The broader partnership will leverage Hartford’s competitive strengths, which include its strong anchor institutions and local development partners.
The City of Hartford contains 10 federally designated Opportunity Zones, including some of the lowest-income zip codes in Connecticut.
Arctaris will assess and evaluate the social and community benefits of each local investment, and these results will be shared with local and national stakeholders over the life of the program.
“Arctaris is thrilled that Bank of America is joining our impact mission,” said Jonathan Tower, founder and managing partner of Arctaris.
“Arctaris looks for projects where we can create pathways to prosperity for underrepresented individuals, while also targeting competitive returns for our investors,” he added.
Arctaris is the largest manager of impact-focused Opportunity Zone funds. With over 13 years and seven funds focused on impact in low-income communities, Arctaris has launched programs similar to the one proposed in Hartford throughout the U.S., including Baltimore, Colorado, Cuyahoga County (Greater Cleveland), Erie, Greater Pittsburgh, Michigan and Washington, D.C.
Arctaris plans to announce additional community-focused Opportunity Zone programs through 2022 and 2023, awarding $25 million or more to cities, counties or states. This Arctaris Opportunity Zone initiative will provide 80% of program funding alongside a 20% match from local government partners, foundations, or private industry.
“Bank of America’s investment in Arctaris will benefit Greater Hartford by investing in local entrepreneurs and developers to help them establish and grow their businesses,” said Joe Gianni, President, Bank of America Greater Hartford. “Additionally, our investments will improve access to capital, quality jobs, basic infrastructure, and drive greater job and wealth creation in the Greater Hartford area.”
“Recent current events place greater urgency for Arctaris to expand our Opportunity Zone investment efforts nationwide,” said former mayor of Philadelphia, Michael A. Nutter, who serves as a Board Member of Arctaris and is responsible for the firm’s mayoral relations nationally.
“The opportunity for social and economic mobility is essential to building healthy communities and improving quality of life for all citizens,” he concluded.
Arctaris Impact Investors, LLC, the controlling entity for Arctaris Impact CDE, LLC, is a Boston-based impact investment firm with experience spanning more than 13 years over seven funds. The firm manages funds that invest in growth-oriented operating businesses and community infrastructure projects located in underserved communities.
Founded in 2009, Arctaris has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter’s Initiative for a Competitive Inner City, and multiple other foundations, federal and state government agencies to invest in Opportunity Zones, inner cities, and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact.
Photo of downtown Hartford via Adobe Stock.