Sr Sue Ernster, Vice President and Treasurer of FSPA, shares her congregation’s Laudato Si impact investing journey, the challenges they faced, and what they learned
Franciscan Sisters of Perpetual Adoration (FSPA)
LaCrosse, Wisconsin
Highlights:
Deployed $3 million in the first 6 months of their Impact Investing journey (January - June 2021)
$1 million: Apis & Heritage - Legacy Fund I - (Private Equity - employee ownership conversions - target 12-15% returns)
$1 million: Religious Communities Investment Fund (0-2% interest)
$1 million: Community Capital Management (Impact Fixed Income)
Watch the video interview below:
Sr Sue Ernster, Vice President and Treasurer of FSPA, shares her congregation’s Laudato Si impact investing journey, the challenges they faced, and what they learned
Context:
Formed an Impact Investing Committee (IIC) in late 2020; brought in an outside advisor to work with the CFO and IIC to create an Impact Investing strategy, discern opportunities, and support the IIC in their decision-making
Amplified the impact investing they had been participating in for years; the congregation surpassed the 7 investments already considered Impact Investments prior to 2020.
Made a multi-year commitment around 3 priority areas:
“Unveiling White Supremacy”
“Joyful Gospel Living”
Building bridges and relationships “that stretch us to be people of encounter who stand with all suffering in our Earth Community”
Has also committed to work on reparations related to operating a Native American Boarding School in northern Wisconsin
Process:
Reviewed 28 opportunities and conducted 12+ diligence calls
Brought 3 proposals to the ICC between summer and fall of 2021
FSPA’s Impact Investing Advisor supported their diligence process; here is an example of a diligence questionnaire that shows how the Congregation integrated principles of Catholic Social Teaching into their investment decisions and asked companies to respond
Looking Ahead
Since July 2021, FSPA has made an additional investments in:
Kachuwa Impact Fund: $250,000
Community Purchasing Alliance Cooperative: $250,000 - 5% interest, 10 year note
Clean Energy Credit Union: $250,000 for Loan Loss Reserve, $250,000 for Special Purpose Credit Program for Black, Hispanic, Indigenous and low-income borrowers
Blackstar Stability Distressed fund: $1,000,000 -5 year, IRR of 11-13% to acquire, restructures pools of single-family home debt products (CFDs) in target markets into mortgages which stabilize families impacted by adverse market conditions
IRC CEO-Safe: $250,000 for Afghan refugees for 0% loans
FSPA hopes to invest in a total of 4-8 additional opportunities by July 2022
Under consideration:
Rust Belt Riders & Tilth Soil
Catholic Climate Covenant-Light of Christ
Lawndale Christian Development Corporation
In 2022, FSPA is discussing the possibility of allocating more of its corpus to Impact Investing in order to expand its work and further its mission