The Mission Driven Bank Fund seeks to foster a stronger and more inclusive banking system by investing capital and providing technical services to CDFIs and MDIs that target African American, Native American, Asian, Hispanic, and Pacific Islander communities. The Fund's mission is to drive growth and financial resiliency in the mission-driven bank sector that translates into progress in closing the racial wealth gap.
History
In September 2021, the Federal Deposit Insurance Corp. (FDIC) encouraged the development of a Mission Driven Bank Fund, a private investment vehicle to support insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs). As anchor investors, Microsoft and Truist agreed to lead the investment fund and hire a fund manager.
In late 2022, after a competitive process, the anchor investors appointed Elizabeth Park, a specialist firm investing in U.S. banks, and Calvert Impact, a leading impact investing firm, as members of the general partner. Strategic Value Bank Partners is a subadvisor.
Photo credit: Heather Prescott Photography