Mission Driven Bank Fund Surpasses $100M in First Close

Mission Driven Bank Fund’s first close tops $100 million 

The Fund, anchored by leading investors committed to building better communities, will support banks addressing the racial wealth & income gap 

Nov 27, Cleveland – The Mission Driven Bank Fund, anchored by Microsoft and Truist, announces its first close of over $110 million. The more than 300 FDIC-insured Minority Depository Institutions and Community Development Financial Institution banks across the country are essential to expand access to financial services in unbanked and underbanked communities. The Fund will support MDIs and CDFIs through investments across assets, liabilities, equity, and off-balance sheet vehicles and offer technical services across strategic and operational areas. The Fund seeks to close the racial wealth and income gap by expanding financial access, creating a more inclusive banking system, and promoting bank resiliency for enduring change. 

Betty Rudolph, director of the Office of Minority and Community Development Banking at the FDIC, which encouraged the establishment of the Fund said, “It has been exciting to watch the anchor investors and the Mission Driven Bank Fund team come together to support these critical institutions.” 

Microsoft Senior Director of Impact Investments Joel Combs noted the unique mandate of the Fund: “Microsoft aims to catalyze meaningful, positive change with its impact investments. The Mission Driven Bank Fund seeks to provide flexible financing to MDI and CDFI banks, which should increase their organizational capacity to support communities in critical ways.” 

Jakub Konieczny, director of investments and commercialization at Truist, said, “We’ve staked our future on building better lives, better communities. We believe that ‘better' requires setting a new standard by ensuring our business and our social impact are woven seamlessly together. We strive for our social commitment to be of the highest standard, and we look forward to partnering with institutions that share our vision.” 

Heather Cruz, a partner at Skadden Arps who, along with her partner, Bao Nguyen, advised on the formation and launch of the Mission Driven Bank Fund, said, “The launch of the Fund is an innovative way to strengthen CDFIs and MDIs across the nation.  The launch is perfectly timed with the issuance of new CRA regulations, which specifically reward banks with CRA credit to encourage more loans, investments, or services in cooperation with MDIs and CDFIs because they play a vital role in providing responsive banking services to those who might not otherwise have access to a financial institution.” 

“The combination of the Fund’s financial and technical services resources has been well received by CDFIs and MDIs across the nation,” said Paul Welch, Mission Driven Bank Fund portfolio manager. “We are excited to reach and support these banks in their missions to bring affordable financial services to traditionally underserved communities.” 

Fraser Woodford, Warner Bros. Discovery executive vice president, said, “We were immediately impressed with the purpose, focus and plan of the MDBF team and are thrilled to continue to be involved and supportive as the Fund grows and refines its investment process and impact structure.” 

Brian Stewart, Middlesex Savings Bank chief financial and investment officer, said, “We are focused on making investments that will be impactful for today and tomorrow. The MDBF approach is innovative, creative, and hits the mark.” 

Learn more at www.missiondrivenbankfund.org. MDI and CDFI banks interested in support and potential limited partner investors should email info@missiondrivenbankfund.org to contact the MDBF team. 

The members of the Fund's general partner are Elizabeth Park Capital Management, the lead Fund advisor and a specialist firm investing in U.S. banks, and Calvert Impact, a leading impact investing firm. Strategic Value Bank Partners, specializing in private and public equity bank investing, is a sub-advisor.  

The Mission Driven Bank Fund will have additional closings throughout 2024 with a target of $500 million plus in total capital. 

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