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- Impact Growth Capital Newsletter
Impact Growth Capital Newsletter
The Evolution of Impact Investing

This week at IGC:
The Evolution of Impact Investing - CPI Rent Inflation Continues Rapid Cooling
Real Time Market Snapshot
Rate | % | Change |
---|---|---|
CMBS 5-Year | 7.02% | |
CMBS 10-Year | 6.67% | |
CPI | 319.775 | +2.8% |
SOFR | 4.32% | +0.02% |
10-Year Treasury | 4.252% | -0.029% |
Fed Rate | 4.25%-4.5% |
Data as of 3/19/2025
Impact Growth Fund
Join Us In Solving The Affordable Housing Crisis
This week, our team has been hard at work ensuring K-1s are distributed to our investors on time. We recognize the importance of receiving these time-sensitive documents, and to ensure every investor is taken care of, we are dedicating our full attention to this process. As a result, there will be no webinar this week. However, you are still able to register to next week’s with the link below.
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IGF is committed to addressing the nationwide shortage of Affordable and Workforce Housing by revitalizing undervalued properties. Our mission is to provide quality, affordable homes for families earning between $30,000 and $80,000 annually while delivering strong, risk-adjusted returns to our investors. By strategically leveraging federal and local incentives, we unlock long-term appreciation and stable cash flow in a resilient sector. This approach seamlessly aligns profit with purpose, generating meaningful social impact alongside recession-resistant gains.
We’re enhancing investor benefits by offering an increased share of depreciation. Up to 80% of the GP-side depreciation will be allocated to IGF investors, maximizing opportunities to offset taxable income.
Join our weekly webinar every Thursday at 2pm CST
**Next webinar will be held 3/27
Impact Investing
The Evolution of Impact Investing
Impact investing, once the scrappy underdog, has matured into a formidable force in the financial world. As of 2024, the Global Impact Investing Network (GIIN) estimates that over 3,907 organizations manage approximately $1.571 trillion in impact investing assets worldwide, reflecting a compound annual growth rate (CAGR) of 21% since 2019. In contrast, the traditional global equity market, valued at $61 trillion as of 2015, has experienced a more modest growth rate.
Delving into asset allocation, impact investors have shown a strong preference for private markets. Private equity and private debt collectively account for nearly 73% of impact assets under management. This focus contrasts with conventional investing, where public equities often dominate portfolios. Moreover, a significant majority (74%) of impact investors aim for market-rate returns, challenging the misconception that social impact comes at the expense of financial performance.
However, the journey hasn't been entirely smooth. In 2024, impact funds raised $30.6 billion, a slight decrease from the previous year's $32.6 billion. While this dip might raise eyebrows, it's worth noting that the broader investment landscape faced similar headwinds. The resilience and continued growth of the sector underscore its evolving significance in aligning financial returns with positive societal outcomes.
Economics
CPI Rent inflation Nears Pre-Covid Levels
New data shows CPI rent inflation is now just 36 basis points from pre-COVID levels. With apartment supply at 50-year highs, this cooldown was inevitable, regardless of the Federal Reserve’s rate hikes. Meanwhile, real-time private sector data has shown flat rent growth for nearly 19 months, highlighting the well-documented lag in CPI’s shelter metrics, which track in-place rents rather than new lease rates.
While Fed rate hikes didn’t bring down rent inflation, they may ironically set the stage for its return. High borrowing costs, combined with weak rent growth in high-supply markets, have crushed the construction pipeline. That means today’s record supply won’t last, and by late 2026 or 2027, a slowdown in new development could push rents higher again, at least in real-time data. CPI rent inflation will take longer to reflect the shift, but the seeds of future rent growth are already being planted.

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