We have a long history of impact investing. We define impact investments as those investments that are made with the intention to generate positive, measurable social and environmental impact alongside a financial return. MetLife and MIM have been active in the impact investment market for over 35 years. Our impact investments are originated specifically to generate positive societal benefits in the markets where we live and work.
Racial Equity: Bias-Reduction Programs
In 2020, MetLife Foundation closed a $2 million equity commitment in the Illumen-managed fund of funds. Illumen Capital leverages its investment power to deliver capital, combined with evidence-based bias-reduction training and coaching for its portfolio of fund managers. With guidance from Stanford SPARQ, Illumen Capital has developed a 10-year bias-reduction program for fund managers, designed to help managers make better decisions, expand their investable landscape, and maximize and protect every dollar invested.
Racial Equity: Targeted Investments in Racially and Ethnically Diverse Communities
Financial exclusion has been a persistent problem in the southeastern U.S., particularly for communities of color. High-cost predatory financial service providers extract billions of dollars in fees and interest from unbanked and underbanked consumers who are better served by credit unions. In 2019, MetLife committed $10 million to Inclusiv Southern Equity Fund to invest capital in credit unions serving low-income and racially and ethnically diverse communities in 17 southeastern states.
Affordable loans for affordable housing
Habitat for Humanity affiliates across the U.S. will have access to flexible and affordable loans to expand affordable housing through a 2019 $15 million MetLife term loan commitment to the organization’s U.S. Treasury-certified Community Development Financial Institution (CDFI). Habitat for Humanity International created a CDFI to lend to the local Habitat affiliates across the U.S. through its Habitat Mortgage Solutions platform. MetLife is the first term lender to support the Habitat CDFI. The transaction builds on more than 20 years of lending by MetLife to support Habitat’s work in the U.S. Habitat supports the financial health of homebuyers with financial education and affordable mortgages with monthly payments limited to no more than 30% of the family’s income.