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Community-Centered Funds and Investment Vehicles

At PathLight Law, we help clients design and build community investment funds and other pooled investment vehicles that aggregate capital and then deploy that capital in community assets or ventures that align with the fund’s mission.

Typically, an engagement begins with an assessment of the client’s goals and values. We help the client choose a fund structure and compliance strategy through which they can best achieve those goals while navigating the various applicable securities laws. We then help them execute by forming the necessary entities, building documents, and handling other compliance details, including securities strategies for raising capital into the fund.

These funds range from private funds that raise capital from accredited investors to more innovative funds that can raise capital publicly from a broad cross-section of the fund’s community (including non-accredited, “community,” or “retail” investors). We have helped our clients build, launch, and grow many different types of funds.


Types of Funds

Charitable Loan Fund

This is a 501(c)(3) charity that raises debt capital and deploys it via loans to organizations that are helping to achieve the fund’s charitable mission.

Real estate fund

By investing in real estate, this fund stays out of the Investment Company Act of 1940 (the “ICA”) and can raise capital via any of several strategies.

Representative Matters: Homekeep by Duo United Home Relief

Diversified Community Investment Fund

This variation on the traditional real estate fund can invest up to 40% of its portfolio in local businesses (including equity, debt, revenue share, or something else).

Representative Matters: Kachuwa Investment Cooperative

Holding Company

This fund acquires a controlling stake in its portfolio companies and is primarily focused on managing those subsidiaries.

Representative Matters: CoPeace PBC Obran Cooperative

Private Fund

While this is a fairly traditional structure (with fewer than 100 investors, who must all be accredited), it can be used for non-traditional and truly community-serving purposes.


For further information, see:

An Exploration of Community Capital Raise Strategies

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Community Investment Funds: A How-Two Guide for Building Local Wealth, Equity, and Justice

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Community Investment Funds Overview

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