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CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

COIN Insurer Investment Programs

COIN-Qualified Investments

Insurer Investments verified by COIN to provide a positive environmental or social impact to low to moderate income (LMI) households or areas, as well as rural and reservation based communities in California.

Diverse Investment Manager Initiative

COIN Invest In Our Diverse Communities Infographic

The Diverse Investment Manager Initiative is an initiative to identify diverse woman-, veteran-, LGBTQ+-, Latinx, Asian Pacific Islander, Black, and Native American-owned investment managers who can guide investments made by insurance companies into capital-ready socially responsible affordable housing and environmental projects across California.

Active COIN-Qualified Investments by Asset Class:

Fixed Income

  • Artesian High Impact Green Bond Fund  - The Artesian High Impact Green Bond Fund’s mission is to displace the maximum amount of greenhouse gas emissions (current and future), while delivering a superior risk adjusted rate of return. The Fund melds the characteristics of “dark” green bonds (with its large scale, lower but immediate environmental impact) and clean energy venture debt (with its smaller scale but innovative and high potential future impact). This will deliver a risk, return, and impact profile that is difficult to achieve through conventional, single asset class solutions in a highly liquid format. The Fund is designed to utilize the Manager’s strengths in both fixed income and venture capital in order to narrow the large clean energy infrastructure spending gap the world faces.  The Fund may also invest in other green fixed income securities such as asset backed securities related to clean energy infrastructure projects. Finally, the Fund is consistent with the California Department of Insurance Climate Risk Carbon Initiative, which believes that, due to climate change, the world is shifting toward the use of renewable energy and away from fossil fuels.

  • Blue Forest Conservation Forest Resilience Bond - The Forest Resilience Bond (FRB) is an investment vehicle designed to finance forest restoration projects across the western United States to decrease the risk of severe wildfire and protect water resources. The FRB pilot project launched in November 2018 in the Yuba Watershed of Tahoe National Forest.  Blue Forest believes that their projects will deliver measurable results to public and private beneficiaries, certain of which will agree to make contracted payments based on completed restoration activities and agreed to performance thresholds. The contracted payments are made to the FRB, which then passes through payments to the lenders.

  • Berkadia Affordable Housing West Coast Partners – Low Income Housing Tax Credit (LIHTC) Investment Equity fund. A regional institutional multi-investor fund formed to acquire a diversified portfolio of LIHTC financed properties in California, which provides for the creation and preservation of affordable housing properties that have received an award of low income housing tax credits.  Building and preserving affordable housing in California for individuals earning less than 60% Area Median Income (AMI). The housing tax credit provides a dollar for dollar reduction of corporate tax liability. Berkadia is a Berkshire Hathaway and Jefferies Financial Group company. Berkadia Affordable Housing is a national specialty platform within Berkadia, an industry leader in commercial real estate investment solutions. The group provides mortgage banking, investment sales, tax credit syndication advisory, and equity sourcing to owners of income-restricted or subsidized multifamily properties, primarily through LIHTC and HUD programs. Additionally, clients have access to municipal banking and LIHTC syndication services through Berkadia affiliates.

  • California Housing & Affordable Mortgage Program (CHAMP) - BMO Capital Markets facilitates COIN eligible investments in Collateralized Mortgage Obligations (CMOs), pass through of Agency eligible residential mortgages, and multifamily affordable housing bonds. The full and timely payment of principal and interest are guaranteed by the full faith and credit of the U.S. government, Fannie Mae and Freddie Mac. The investments exclusively support affordable housing financing in California.

  • California Housing Finance Agency’s first time homebuyer mortgage backed securities - California Housing Finance Agency (CalHFA) is a California state agency and has been supporting the financing needs of first time homebuyers since 1975. Investment opportunities from CalHFA's ongoing loan production includes Ginnie Mae or Fannie Mae securities backed by loans made to first time homebuyers with certain social impact characteristics such as low to moderate income, defined census tract areas and ethnic diversity.

  • Calvert California Rebuilding Fund - Launched by California Governor Gavin Newsom in November 2020, the California Rebuilding Fund (the “Fund”) is a public private partnership that aggregates funding from private, philanthropic, and public sector resources – including an anchor commitment from California's Infrastructure and Economic Development Bank ("IBank") – to address the capital and advisory needs of California small businesses as they reopen and recover from the COVID-19 health and economic crisis. This effort targets the smallest of small businesses – those with fewer than 50 employees – and has a goal of reaching historically under-resourced communities. The Fund equips community-based lenders with the liquidity, risk mitigation, and support required to meet the unique capital needs of the small businesses in their communities. The Fund is structured in two phases with two different Special Purpose Vehicles (SPV) that hold Rebuilding Loans originated by participating community lenders. The first SPV has been subscribed. The second SPV will scale the program and allow the community lenders to continue offering low-cost credit to their markets.

  • College Access Tax Credit Fund (CATCF) - The CATCF allows individual taxpayers, businesses and insurance companies to claim a tax credit equal to 50% of their cash contribution to the CATCF. These contributions bolster financial aid for California's low income college students. This $500 million dollar aggregate tax credit is only available through taxable year 2022. The Fund is designed to support the Cal Grant Program, which is the State of California's largest source of educational financial aid. Cal Grants are for students pursuing an undergraduate degree or vocational or career training at a qualifying California college. Awards are made to students with a financial need to attend the college of their choice who have family income and assets below set minimum levels. 

  • Community Capital Management Economic Development Fund - Invests in high credit quality fixed income securities whose proceeds support community, economic, development and environmental activities.

  • Enhanced Capital Solar Tax Credit Investments - Enhanced Capital works with insurance companies to repurpose their state and federal income tax liabilities into income yielding assets through customized tax credit investment opportunities in qualifying solar energy projects. Enhanced Capital acts on behalf of the investor to source solar projects, conduct due diligence and manage the investment from negotiating terms, deal closing, deal management and reporting through investor exit. Enhanced works with corporate clients to customize portfolios of federal tax credits with a focus on Solar Investment Tax Credits (ITCs). Solar ITCs provide an attractive return profile in addition to fulfilling ESG and sustainability goals. The targeted net return is comprised of the tax credit, depreciation benefits, project cash returns and an exit payment over a five-year period.   

  • Fannie Mae MBS Program - Fannie Mae mortgage pools for COIN targeted mortgage backed securities (“MBS”). Fannie Mae supports the liquidity and stability of the U.S. mortgage market primarily through purchasing and securitizing mortgage loans originated by lenders into MBS, which they then guarantee. The MBS will be backed by mortgage loans to low and moderate income borrowers for properties located within the United States, with a geographic concentration of properties in California. 

  • Hanover Securities/Banes Capital Socially Responsible Investment (SRI) Program – With an investment team that averages over 30 years of investment experience, Hanover Securities is one of only thirteen MBS-approved pool assemblers in the United States.  Hanover provides financial institutions with an experienced and cost-effective resource for building diversified Socially Responsible Investment (SRI) portfolios utilizing a range of products. Using Government Guaranteed, floating-rate SBA 7(a) pools as the core asset, Hanover Securities SRI portfolio program offers investors the ability to direct their resources to a diversified portfolio of investments that benefit small businesses, home ownership, renewable energy, as well as low- and moderate-income geographies and populations.

  • IMPACT Mortgage Opportunities Fund, LP - The Fund’s investments in first lien mortgage loans will seek to deliver stable and low volatility current income by providing financing to the owners of affordable multifamily properties. These properties are stabilized affordable multifamily rentals with at least 90% occupancy and stable cash flows. The owners will utilize this financing to maintain the properties for low and moderate income tenants. Over the life of the Fund, IMPACT Community Capital estimates the strategy will help preserve approximately 5,000 affordable multifamily rental housing units.

  • Multi-Bank Securities, Inc. (MBS) Community Impact Mortgage-Backed Securities Programs - MBS sources, structures and offers investor directed investments via Ginnie Mae, Fannie Mae and Freddie Mac mortgage backed securities. Social mandates and Community Reinvestment Act requirements accepted. MBS is a certified Veteran Owned Business Enterprise (VBE) and a member of the National Veteran Owned Business Association (NaVOBA). MBS is one of a select group of broker dealers approved to work directly with the U.S. agencies to underwrite and distribute their debt. The Firm is a member of Fannie Mae's ACCESS Diversity Program, Freddie Mac's Supplier Diversity Program and the Federal Home Loan Banks' Diversity and Inclusion program. 

  • RBC Global Asset Management Access Capital Community Investment Strategy - Invests primarily in high quality debt securities and other debt instruments supporting the community development industry in areas of the United States designated by strategy shareholders. The strategy can be invested in through mutual fund I shares (ACCSX), or separately managed account. The affordable housing related investments are made through securities issued by Ginnie Mae and government sponsored enterprises, such as Fannie Mae and Freddie Mac. The investment is especially well structured for investors seeking highly rated, highly liquid asset liability matching, such as property and health insurers.

  • SDS Supportive Housing Fund, LP - Finances the development of cost effective, high-quality permanent supportive housing (“PSH”) to help alleviate homelessness in California while seeking a targeted risk-adjusted market rate-of-return. 100% of the units in these neighborhood-scaled apartment communities will be made available for people suffering from homelessness, with the rent payments coming from Section 8 tenant vouchers. The Fund will invest its capital in the ground-up development of an estimated 20 apartment communities, where tenants will receive intensive case management and a safe home. Additional impacts include: redeveloping blighted sites with properties that are expected to become catalysts in revitalizing their low/moderate-income communities; providing entrepreneurial retail space to local businesses on the ground floor; creating potential revenue streams for local African-American churches (seven of the initial projects have African-American churches as the land partners, ground leasing their land for development), as well as a range of environmentally sustainable features at each development, such as solar panels, aeroponic rooftop farming, and sustainable construction practices that are expected to be included in the developments.

  • Solomon Hess SBA Loan Fund - Short duration bond fund investing in SBA 7(a) loans to promote job creation, retention, and improvement for LMI persons employed by small businesses.

  • Stifel, Nicolaus & Company California Municipal Bonds - Stifel acts as a broker dealer for new issues of California municipal bonds. Stifel is consistently the #1 or #2 underwriter of California municipal bonds ranked by a number of issuers. And #1 underwriter of National K-12 and Economic Development negotiated municipal transactions. Stifel is a top five underwriter of Negotiated Single Family and Multifamily Housing transactions including projects involved in providing low to moderate income, senior and supportive housing. Stifel regularly offers federally taxable and tax exempt fixed income securities (bonds) sold by issuers engaged in affordable housing, low income student education, PACE financings, mass transit, renewable energy and water conservation.

  • Wells Fargo Government Guaranteed Mortgage Program - WFGGMP assembles custom pools of LMI mortgages from Agency MBS sourced from the top ten U.S. lenders.

Private Debt

  • Align Affordable Housing Bond Fund, LP - Invest in tax exempt subordinate bonds secured by affordable housing properties. The bonds will be issued by state or local governmental entities. To finance the purchase and renovation or construction of affordable housing properties. The Fund will promote the development of new affordable housing properties by providing innovative financing to developers at an interest rate that is less expensive than equity. As a result, developers will be able to build more affordable housing and provide low income residents with a clean, safe and affordable place to live. 

  • Small Business Community Capital II, LP - Invests in senior secured debt, subordinated debt and equity in small to mid sized companies that face a lack of capital availability. The industry focus is business services, consumer products, food & beverage, healthcare, manufacturing and telecommunication.  

Private Equity

  • DCA Capital Partners II, LP - Takes preferred stock and subordinated debt positions in growth oriented companies primarily located within the Central Valley of California.  

  • Diverse Communities Impact Fund I, LP - Invests in platforms that improve quality of life by increasing access to better education, health care, banking, financial services and credit, and improved environmental conditions. The Fund’s industry targets are technology, health care, education, food, the green economy and innovative engineering solutions, including investments in an electric vehicle (EV) infrastructure platform for low income diverse communities, an electric airplane manufacturer, and a water leakage detection technology for large water utilities. These examples underscore the value of keeping capital in the communities they serve, thus allowing for additional job creation and expanded economic mobility, all while generating above average risk adjusted rates of return.

  • InterAtlantic Energy Capital Ventures (IA ECV) - IA ECV Fund I is a Venture Capital Fund focused on energy and water technology investments, and is part of the IA Capital investment platform, which has an 18-year track record managing fintech and insurtech Venture Capital funds. A key enabling factor of IA ECV Fund I investment strategy is the concept of the energy transition: moving away from a centralized system that depends on fossil fuels to a decentralized and decarbonized grid that powers a fully electrified economy. ECV aims to catalyze and accelerate this transition, reducing the dependency of the economy from fossil fuels and bringing wide ranging environmental and societal benefits, from new jobs to build the infrastructure of the energy transition, to health benefits driven by clean air, clean transportation and clean water and energy resources. In addition, ECV is affiliated with Ramirez & Associates, a minority owned firm and one of the largest fixed income and equity asset management funds in US.

  • KickFlip BioVentures Fund I LP - Therapeutic life sciences and health tech focused venture fund, targeting a $150 million raise focused on early venture. KickFlip BioVentures is differentiated by the following: 1) Geographic focus only on Southern California innovation; 2) Biotech, life science therapeutics (80%) and digital health tech (20%) investments; 3) Special strategic partnerships with the best universities and hospitals (curated deal flow and ecosystem synergies) developed through unparalleled network of relationships; 4) General Partner will donate up to 10% of its profits back to the foundations / endowments of schools / health institutes that are material LPs in the Fund; 5) Investment focus is early venture, to take advantage of capital scarcity and funding gap between late seed and early venture.

  • Westly Capital Partners Fund IV - A venture capital fund that will invest primarily in capital-efficient, high-growth, software-enabled sustainability and resource efficiency companies. Fund IV, based in Menlo Park, CA, will invest in A, B, & C stage financing rounds and focus on smart energy, smart transportation and smart buildings & cities. The Westly Group has invested in over 30 portfolio companies, 60% of which are headquartered in California, and currently employ over 80,000 people. The Westly Group has invested in companies that target numerous social and environmental benefits such as air pollution and global warming, water conservation, smart building efficiency, environmental project financing, healthy food for school children, and emergency response.

Real Assets

  • ACM Fund II, LLC - The mission at Agriculture Capital is to develop a regenerative food and agriculture system that produces better food at scale and delivers market asset competitive returns to investors while making a difference in local communities. They envision a world where more people have access to food that is better and healthier for their families, while improving the land and the communities in which they operate.

  • Equilibrium Capital  - Sustainable institutional investor strategies include three real asset sectors: Agriculture & Food, Renewable Resources (which include Energy and Water), and Real Estate.  Common to all is the aim to generate current returns, long-term resilient sustainability rooted financial values, and scale. Equilibrium has developed its Controlled Environment Production Agriculture1 strategy backing, at scale, land, water and transportation efficient controlled environment production systems for delivering high quality produce to mass markets.  The firm also has strategies in water and waste management, advanced green real estate, and sustainably grown and managed permanent crops.

  • The Healthy Food Financing Initiative - Promotes access to healthy foods in the state of California by financing the distribution and retail of fresh food in communities that have been defined as food deserts or as Food Opportunity Areas. 

  • Oak Street California Added Alpha Fund II, LP - Invests best in class emerging private real estate funds with an emphasis on California based investments. These investments target retail in under served neighborhoods, commercial properties, medical real estate opportunities, workforce and under served housing, energy efficient assets, brownfield remediation and other strategies with rigorous Environmental, Social or Corporate Governance ("ESG") initiatives. CAAF II will target "added alpha" for investors through helping smaller, newer entities raise an initial institutional fund, including investing with early stage women and minority owned firms.

  • Prospect Opportunity Zone Fund, LP - The Fund will make tax-advantaged equity investments in real estate development and redevelopment projects located in Opportunity Zones, with a primary focus on multifamily real estate. Opportunity Zones are economically developing communities that have been designated by each U.S. state. Qualifying investments in Opportunity Zones are eligible for preferential tax treatment. To date, Prospect Capital has invested in over $3B of real estate, with a focus on multifamily properties. Of note, 49% of Prospect’s multifamily properties have been located in census tracts eligible for Opportunity Zone designation.

  • Watt Investment Partners – ETHOS Affordable Housing Preservation Strategy - Affordable Housing Preservation Strategy focuses on California residential properties, located in at-risk areas for current and future displacement pressure and gentrification. The strategy identifies market rate, for-rent properties and works with local public agencies to record a Regulatory Agreement on the property, legally converting the property to Affordable Housing. Improved housing security for at-risk tenant populations by legally requiring housing to remain affordable to low income tenants into the long term (55+ years). The strategy contemplates significant capital investment and renovations throughout the property, contracting with local contractors and trades to improve the property and extend the life of the asset. To date, the strategy has acquired 850 units in Los Angeles and Oakland, budgeting over $30,000 per unit to update legacy electrical, heating/cooling, and plumbing systems, upgrade appliances to energy and water efficient levels, and overall extend the useful life of the property.

For additional information please contact COIN at 916.492.3525 or COIN@Insurance.ca.gov

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