Social Impact Lending with Ecofin
Description
On today’s episode of The Financial Commute, Chris Galeski is joined by David Sifford, Managing Director of Social Infrastructure at Ecofin. Ecofin is a sustainable investment firm that unites ecology and finance; they invest in education, climate impact, healthcare, senior living, waste transition, and other sustainable/social incentives.
David says many of the fields they invest in can be difficult to understand; for example, loans to charter schools can be complicated. Ecofin benefits its clients by handling the complexities of underwriting.
David finds fulfillment in knowing their firm is helping teachers, students, and senior citizens obtain a higher quality of life. Furthermore, Ecofin’s waste transition deals mainly take place in rural communities and create jobs while benefiting the environment.
Chris and David also discuss the current state of fields like education, senior living, and sustainable waste management. Enrollment in charter schools has increased because of the COVID-19 pandemic. However, COVID has also slowed construction for affordable senior living residences which worsens the housing issue for a rapidly aging population. Regarding waste management, David says there is a huge opportunity for anaerobic digesters (the process of converting organic matter into renewable natural gas) to grow in the United States, as countries like Germany have 8000+ digesters while the U.S. currently only has 300.
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The referenced investment strategy is speculative and entails substantial risks. There can be no assurance that the strategy's investment objectives will be achieved or that its investment program will be successful.
Target returns or other forecasts contained herein are based upon subjective estimates and assumptions about circumstances and events that may not yet have taken place and may never take place. If any of the assumptions used do not prove to be true, results may vary substantially from the target return. There is no guarantee that the investment objective will be achieved, and Morton Wealth makes no representations as to the actual composition or performance of any security discussed herein. Past results are no guarantee of future results. All investments involve risk, including the loss of principal.