TruFund Financial Services, Inc., a Community Development Financial Institution located in New York City, announced that it has made an equity investment in Genesis Companies, LLC (Genesis), an African American-owned full-service real estate development firm that specializes in financing, developing and operating mixed-income and mixed-use residential projects in New York and New Jersey. The preferred equity investment will support critical aspects of Genesis’ strategic growth plan, specifically allowing the firm to continue to grow internal capacity, execute more efficiently and leverage increased liquidity.
“Obstructions to acquiring affordable forms of capital have limited opportunities for minority developers and have greatly impeded their business prospects,” said James H. Bason, President and CEO of TruFund, the fund manager. Our preferred equity investment will enhance Genesis organizational growth trajectory and allow them to readily and actively pursue affordable housing development opportunities.”
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The Genesis investment is the second investment by the Impact Developers Fund (“IDF”), launched in July 2020 by Morgan Stanley, TruFund Financial Services, Inc. and the Ford Foundation. IDF was established to provide equity capital and technical support to emerging real estate developers, especially businesses led by women and people of color. Lack of access to equity and equity-like capital hinders emerging developers from successfully and actively pursuing affordable housing development opportunities. Genesis, which has over a 16-year track record of developing workforce, affordable and market-rate housing for individuals, families, seniors and veterans, was identified early by IDF as an attractive potential investment.
“We are beyond excited about this new strategic partnership with Morgan Stanley, TruFund and Ford Foundation. They are best of breed institutions committed to responsibly developing our urban centers for working families and urban-dwellers,” said Karim Hutson, Founder and Chief Executive Officer, Genesis Companies. “This is a major step in our Company’s growth plan and all should expect to hear more from us as we put this money to work and push forward on the important work of elevating and transforming the communities in which we work.”
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TruFund receives ongoing support from an impact-driven, minority-owned investment platform, Lafayette Square Holding Company, who provided structuring and underwriting support for IDF’s equity investments. “We are excited to continue supporting TruFund’s efforts in identifying and investing in opportunities that impact underserved communities and promote financial inclusion,” said Damien Dwin, Founder and CEO at Lafayette Square.
“We are thrilled to support Genesis Companies and their efforts to provide high quality, affordable housing options for communities in New York and New Jersey,” said Roy Swan, Director of Mission Investments for the Ford Foundation. “We are also impressed by the scale and speed at which TruFund is making investments in top community-oriented business leaders. We thank Lafayette Square for helping TruFund make fast and tangible progress towards building a more equitable future for all.”
“Having worked with Genesis Companies and witnessed their growth over the last decade, this strategic investment will ensure they continue to have a positive impact on communities and residents while advancing to the next level in their work to build and manage quality, service-enriched housing across New York and New Jersey,” said Joan Tally, Managing Director in Community Development Finance at Morgan Stanley.
Genesis was advised in the transaction by Fort Greene Partners (FGP), a minority-owned firm. “Karim Hutson is a visionary business and community leader,” said Richard Wayner, Founder and Managing Partner of FGP. “This blue-chip investment led by TruFund, Morgan Stanley and Ford Foundation recognizes that Genesis is building one of the leading real estate businesses in New York.”
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