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Turner Impact Capital's Affordable Urban Housing Fund Scores Chris Paul and $357M



Bobby Turner's Turner Impact Capital, one of the nation's largest real estate investment firms dedicated to social impact, closed its second fund at over $350M. the Turner Multifamily Impact Fund II (TMIF II) is the second and larger fund from TIC is focused on providing affordable housing to people who earn too much to qualify for subsidized housing but not enough to afford homes in the communities where they live and work. The goal is to invest in ethnically diverse, underserved communities to serve residents that make up 60%-100% of the local median.

Chris Paul, who grew up in Winston-Salem, North Carolina, was frustrated, feeling that his extensive philanthropic efforts were just "a Band-aid on the situation." His choice to put those charitable funds to impact investing will be an interesting study of the new trend in the industry. While impact investing does provide a return, unlike charitable gifts, the returns are overall lower than straightforward stock or bond market indexes, and the fess are higher because of the amount of work for the investment (i.e. scouting apartments), according to data from the Global Impact Investing Network, a trade organization. The difference is the investor, who is more concerned about their money achieving an outcome, than whether it generates a certain profit. He joins hedge fund billionaire Bill Ackman, Rockefeller Brothers Fund, actress Eva Longoria, and athletes Andre Agassi and Magic Johnson, who have all invested in other funds and projects ran by the company.