Transcript Banc of America Securities Graphics

Banc of America Capital Access Funds
Social Impact Project
Presented at
The Public Pension Funds and Targeted Investing Regional Roundtable
Federal Reserve Bank of Boston
December 6, 2006
Table of Contents
I.
Banc of America Capital Access Funds
II.
BACAF Team
III.
Social Impact Project
IV.
Social Impact Project – Preliminary Results
V.
Lessons Learned
1
I. Banc of America Capital Access Funds
Banc of America Capital Access Funds (BACAF) is a fund of funds investment vehicle that invests in private
equity and venture capital funds that can provide market returns while also investing in underserved markets.
BACAF seeks funds that will invest in companies that are:

located in or employ residents of low to moderate income geographies

owned or managed by ethnic minorities

owned or managed by women

focused on delivering products or services to an ethnically diverse customer base; or

located in areas—urban or rural—with limited access to investment capital
2
II. BACAF Team
BACAF is comprised of a dedicated team of professionals solely focused on investing in private equity funds
focused on underserved markets.

Guillermo Borda (Los Angeles): New transaction originations and investor relations.

Craig Fowler (St. Louis): Bringing resources of the Bank to our funds and companies.

Matt HoganBruen (Washington, D.C.): New transactions, advisory services, and benchmarking.

Edward Powers (Chicago): Portfolio management and investor relations.

Sanjiv Shah (Chicago): Originations, transaction structuring, and investor relations.

Mari Abba (Chicago): Investment analyst and administrator
3
III. Social Impact Project

Gathering data at the Fund and company level to study the benefits gained through
underlying investments

Working with Janneke Ratcliffe and the Center for Community Capitalism at the University of North Carolina
at Chapel Hill (UNC), a nationally recognized leader in this area of study, to analyze data

BACAF/UNC study was funded by the Kauffman Foundation

Company-level sample data collection fields can include:

Percentage of companies managed by women or ethnic minorities

Percentage of companies owned by women or ethnic minorities

Job growth in companies since investment

Percentage of employees with health insurance

Aggregate payroll

Measuring financial and social impact of investors’ commitments

GPs must sign a Side Letter that includes social impact reporting template and confidentiality provisions
4
IV. Social Impact Project – Preliminary Results
Fund Level

Most of the funds have a focus on ethnic minority opportunities

Most of the funds have a focus on low to moderate income geographies

Most of the funds have at least 1 ethnic minority Partner

Several of the funds have at least 1 female Partner
5
V. Lessons Learned

Getting social impact data to critical mass takes time due to the life cycle of private equity

Establishing trust with the GPs over their social impact information is crucial to comfort and
compliance

Making the reporting as easy as possible to the GP enhances compliance

Emphasizing financial return focus to the market is critical to showing the model works

Minimizing the problem of fundraising for these funds will drive social impact of this industry

Educating entrepreneurs about private equity and venture capital will drive social impact of this
industry
6
Banc of America Capital Access Funds
Matt HoganBruen, Managing Director
202-442-7519
[email protected]
7