Social investment firm diversifies by Becky Brun - 10.8.08
RSF Social Finance, a San Francisco–based investing, lending and philanthropic services firm, is launching a mezzanine debt product for the social enterprise market. The product is geared toward for-profit enterprises that shy away from venture capital investment because they want to preserve the mission of their business, says Esther Park, director of the firm’s lending program.“That product development launched out of hearing what the needs were for entrepreneurs,” Park says, who could not disclose further details about the program at press time.RSF Social Finance, which is led by president and CEO Don Shaffer, has awarded more than $145 million in loans and more than $65 million in grants since 1984. Its annual giving has grown substantially in past three years: It awarded less than $5 million in loans in 2006; and this year, the firm has already awarded more than $20 million in loans, Park says. “People are more interested in being more socially conscious with their investment dollars,” she says. “The SRI funds that are out there are not cutting it for them because the screens are so light.” Park also attributes the firm’s growth to the financial crisis of the last six to eight months, and says she believes that as a result, people want more transparency about where their money is going.
Page: 1 of 2
